Until now, FBR digital invoicing was mainly about sales tax. That has changed.
On 29 September 2026, FBR issued two notifications that extend its electronic invoicing framework to federal excise duty (FED) and to taxable services in the Islamabad Capital Territory (ICT):
S.R.O. 1666(I)/2026 amends the Sales Tax Rules, 2006
S.R.O. 1667(I)/2026 amends the Federal Excise Rules, 2005
If your business charges federal excise duty, or provides taxable services in Islamabad, your invoices now fall under the same e-invoicing system as sales tax. The good news: if you’re already integrated with FBR for sales tax, you don’t need a separate integration. But you may need to update how your invoices are prepared.
This guide explains what changed, who’s affected and what to do now.
Key Takeaways
FBR’s e-invoicing framework now covers federal excise duty and ICT services tax, not just sales tax.
SRO 1666(I)/2026 amends Chapter XIV of the Sales Tax Rules, 2006; SRO 1667(I)/2026 inserts Rule 12A (“Electronic invoicing and integration”) into the Federal Excise Rules, 2005.
Businesses already integrated for sales tax don’t need a separate technical integration.
One e-invoice can cover several taxes, as long as each tax is shown separately.
FED invoices need additional line-level details, so item and tax setup may need updating.
What Changed?
Before | Now | |
|---|---|---|
Taxes covered by e-invoicing | Sales tax | Sales tax, federal excise duty and ICT services tax |
Federal Excise Rules | No e-invoicing rule | Rule 12A: Electronic invoicing and integration |
Integrator licences | Sales tax | Extended to the additional taxes |
Transactions with several taxes | Sales tax invoice only | One invoice, with each tax shown separately |
SRO 1666(I)/2026: Sales Tax Rules
This notification amends Chapter XIV of the Sales Tax Rules, 2006, the chapter that governs electronic invoicing, to bring federal excise and ICT taxable services into the same framework. It also adds federal excise line-item details to the invoice data requirements.
SRO 1667(I)/2026: Federal Excise Rules
This notification inserts Rule 12A, “Electronic invoicing and integration,” into the Federal Excise Rules, 2005. It applies the same e-invoicing procedures to federal excise invoices, which must carry a verifiable, unique FBR invoice number.
Who Is Affected?
1. Businesses charging federal excise duty
Any business required to issue invoices under the Federal Excise Act, 2005. FED applies to specific goods and services listed in the Act’s schedules, and in some cases it’s charged in sales tax mode. If your products or services are listed there, this change applies to you. Check the schedules or confirm with your tax advisor.
2. Service providers in Islamabad
Businesses providing taxable services under the Islamabad Capital Territory (Tax on Services) Ordinance, 2001. Services in Islamabad are taxed by FBR rather than a provincial authority, so they now come under FBR’s e-invoicing framework too.
3. Businesses with transactions involving several taxes
If a single sale involves sales tax and federal excise duty, or sales tax and ICT services tax, you can now issue one e-invoice covering all of them, as long as each tax is shown separately.
Do You Need a New Integration?
If you’re already integrated with FBR for sales tax: no. Businesses already connected to FBR’s system don’t need a separate technical integration just because the framework now also covers federal excise or ICT services. Existing integrator licences also extend to these taxes.
But you may still need to update your setup. Being integrated isn’t the same as sending complete data. If your invoices include FED or ICT services tax, your system must send the extra details correctly.
If you’re not integrated yet: if you charge FED or provide taxable services in Islamabad, you’ll now need to integrate. Start with our guide to which businesses must integrate with FBR and the complete FBR integration guide.
What Changes on Your Invoices?
Reports on SRO 1666 indicate that invoices involving federal excise duty need additional line-level details, including:
Field | What it means |
|---|---|
Duty type | The type of federal excise duty charged |
Rate | The FED rate applied |
Price per unit | Where FED is charged per unit |
FED amount | Where duty isn’t payable in sales tax mode |
SRO or schedule reference | The notification or schedule the duty is charged under |
Serial number | The item’s serial number within that SRO or schedule |
Please check the exact field requirements against the official SRO text and FBR’s latest technical documentation before changing your system.
Other requirements reported:
Each tax shown separately when several taxes apply to one invoice
Records kept for six years, including invoices, debit notes, credit notes and advance receipt invoices
FBR invoice number and QR code on every invoice
What Happens If You Don’t Comply?
Sellers who issue invoices without an FBR invoice number or QR code, or leave sales out of Annex-C or tax returns, may face recovery of unpaid tax and statutory penalties. For sales tax, the Finance Act 2026 also gave FBR stronger powers against businesses that aren’t integrated.
When Does It Take Effect?
The notifications are dated 29 September 2026, but published reports don’t state a separate compliance start date. If your business charges FED or ICT services tax, treat this as current, check FBR’s official notification, and confirm with your tax advisor.
What to Do Now: Step by Step
Step 1: Check whether you’re affected
List your products and services, and check whether any are subject to federal excise duty, or whether you provide taxable services in Islamabad.
Step 2: Review your current FBR integration
If you’re already integrated for sales tax, confirm your system can send FED and ICT services tax details on the same invoice.
Step 3: Update item and tax setup
For each item or service subject to FED:
Record the duty type and rate
Record the SRO or schedule reference and serial number
Set up per-unit duty where it applies
Make sure each tax appears separately on the invoice
Step 4: Test before going live
Test invoices covering FED and ICT services in the sandbox. FBR’s scenarios already include goods and services with FED in sales tax mode (SN017 and SN018) and services in Islamabad (SN019). See our FBR sandbox scenario testing guide.
Step 5: Monitor rejections
New fields often cause new validation errors in the first few weeks. Watch your rejected invoices daily and fix the cause in your item and tax setup. Our FBR error codes list explains common messages.
Step 6: Fix mistakes quickly
If an invoice goes out with the wrong FED details, you have 72 hours to correct it. See how to correct or cancel an FBR invoice.
Step 7: Review record keeping
Make sure invoices, credit notes, debit notes and advance receipt invoices are stored for six years.
Don’t Confuse This With SRO 288(I)/2026
SRO 1666 and 1667 are about sales tax, federal excise and ICT services tax e-invoicing. They’re different from SRO 288(I)/2026, a draft notification on the income tax side that proposes online integration for businesses like restaurants, clinics and salons. See our explainer on SRO 288(I)/2026.
How ERPNext Handles FED and ICT Services Tax
Requirement | How ERPNext handles it |
|---|---|
Several taxes on one invoice | Tax templates with sales tax, FED and services tax as separate lines |
FED rates and duty types | Configured per item or item group |
Per-unit duty | Calculated from quantity and rate |
SRO and schedule references | Stored on items and sent with each invoice |
ICT services | Separate tax templates for Islamabad services |
FBR invoice number and QR | Saved and printed on every invoice |
Record keeping | Invoices and notes stored with full audit trail |
For setup details, see our ERPNext FBR digital invoicing setup guide.
Frequently Asked Questions
What is SRO 1666(I)/2026?
It’s an FBR notification dated 29 September 2026 that amends Chapter XIV of the Sales Tax Rules, 2006 to extend electronic invoicing to federal excise duty and Islamabad Capital Territory taxable services, including federal excise line-item details in invoice data.
What is SRO 1667(I)/2026?
It’s an FBR notification dated 29 September 2026 that inserts Rule 12A, “Electronic invoicing and integration,” into the Federal Excise Rules, 2005, applying the e-invoicing framework to federal excise invoices.
Do I need a new FBR integration for federal excise?
Not if you’re already integrated for sales tax. You don’t need a separate technical integration, but your system must send the FED details correctly.
Can one invoice include sales tax and federal excise duty?
Yes. One electronic invoice can cover several taxes, as long as each tax is separately identifiable.
Does this apply to service providers in Islamabad?
Yes. Taxable services under the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 now come under FBR’s e-invoicing framework.
How long must FED invoices be kept?
Reports indicate invoices, debit notes, credit notes and advance receipt invoices must be kept for six years.
When does SRO 1666 take effect?
The notifications are dated 29 September 2026. Published reports don’t state a separate start date, so check FBR’s official notification and confirm with your tax advisor.
Get Your FBR Integration Ready for FED and ICT Services
Bizloom ERP helps businesses across Pakistan update their FBR integration for federal excise and Islamabad services tax. We can:
Review your current integration for FED and ICT readiness
Set up FED rates, duty types and SRO references on your items
Configure tax templates for multi-tax invoices
Test FED and ICT scenarios in the sandbox
Monitor and fix rejections after go-live
See our FBR integration services or read what FBR integration costs.
Charge FED or provide services in Islamabad? Send us a message on WhatsApp and we’ll check whether your current setup is ready. Ask on WhatsApp
Want a full readiness check? Book a Free ERP Assessment with Bizloom ERP.