ISLAMABAD: The Federal Board of Revenue (FBR) has made Point of Sale (POS) integration with its computerized system mandatory for service providers operating in the Islamabad Capital Territory (ICT).
Under Sales Tax General Order (STGO) No. 05 of 2026 (ICT), the FBR directed service providers falling under Table-1 and Table-2 of the ICT (Tax on Services) Ordinance, 2001 to integrate their business operations with the tax authority’s computerized system for real-time reporting of taxable services.
The tax authority stated that amendments introduced through the Finance Act 2025 empowered the FBR to require service providers to connect their hardware and software systems with the board through licensed integrators, including Pakistan Revenue Automation Limited (PRAL).
According to the order, public limited companies and firms having annual turnover exceeding Rs1 billion must complete registration by May 25, 2026. These entities are required to complete system testing by June 5 or June 10 and start issuing electronic invoices by June 15 or June 20, 2026.
Companies with annual turnover below Rs1 billion, along with individuals and associations of persons having turnover above Rs100 million, have been assigned registration and implementation deadlines between May 30 and June 20, 2026.
Meanwhile, all other registered service providers operating in ICT must complete registration by June 1, system testing by June 15, and begin issuing electronic invoices no later than June 25, 2026.
The FBR clarified that businesses already integrated with the board’s computerized POS system before the issuance of the latest order would not be required to repeat the integration process.
Tax experts believe the mandatory POS integration and electronic invoicing framework will improve documentation of the services sector, increase transparency, and strengthen sales tax collection in Islamabad.
The initiative is part of broader tax reforms by the FBR aimed at promoting digital compliance, improving revenue collection, and reducing undocumented economic activity in Pakistan.
