Islamabad: The Federal Board of Revenue (FBR) has announced an important decision for oil and gas companies operating in Pakistan. Starting in December 2026, these companies will be required to issue digital invoices and connect their sales records directly to the FBR’s computerized system.
The tax authority has introduced a formal procedure for digital invoicing in the oil and gas sector. The new system is designed to improve the management of sales records, strengthen tax monitoring, and make financial transactions more transparent.
According to the FBR, the new requirements will apply to sales tax returns for December 2026. Oil and gas companies will have to ensure that their sales invoices are digitally generated and linked to the tax authority’s system.
Under the new rules, every partner involved in a Petroleum Concession Agreement will be required to issue a separate digital invoice for its share of sales.
In joint oil and gas projects, non-operator companies will also be allowed to upload invoices issued by the main operator to the FBR system. This arrangement is intended to make digital invoicing easier for companies working together on petroleum exploration and production projects.
One of the key features of the new system is that every digital invoice will receive a unique identification number and a QR code. These features will help identify invoices and make it easier to verify and maintain sales records.
The FBR has also directed companies to issue their digital invoices before submitting their monthly sales tax returns.
However, companies will be allowed to make corrections or delete invoices before filing their tax returns if any errors are identified.
The tax authority has further announced that it will address difficulties faced by oil and gas companies during the implementation of the new digital invoicing system.
The move is expected to improve tax documentation and provide the FBR with better access to sales and tax-related information across the oil and gas industry.
By introducing digital invoicing, the government aims to make financial reporting more organized and strengthen transparency in one of Pakistan’s major economic sectors.