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Digital invoicing changed the monthly sales tax return. Your sales annex, Annex-C, is now populated from the invoices you report to FBR (rule 150R(5)), and your customers' purchase annex, Annex-A, is populated from it. If your books, your e-invoices and your return disagree, FBR's systems will notice — and since SRO 1655(I)/2026 they can send you an electronic intimation.
The three-way tie
Every month, three numbers must agree for each tax rate and sale type:
- Books — sales recorded in your ledger;
- E-invoices — invoices accepted by FBR with an FBR number;
- Return — the supplies declared in Annex-C.
Differences are normal during the month; unexplained differences at filing time are not.
A ten-step monthly routine
- Clear the queue. Make sure no invoices are still pending, rejected or awaiting reconciliation with FBR.
- Upload offline invoices issued during outages (within 24 hours of restoration).
- Review cancellations made within the 72-hour window, and any Commissioner approvals for later ones.
- Compare books to e-invoices by rate and sale type; investigate sales booked without an FBR number, and vice versa.
- Check debit and credit notes and advance receipt invoices are reflected in both.
- Download Annex-C from IRIS and tie it to your e-invoice register.
- Review Annex-A — the input tax suppliers have reported for you — against your purchase ledger; chase suppliers whose invoices are missing.
- Apply input tax rules — apportionment for exempt supplies, inadmissible input tax, and any reduced input tax ratio.
- Calculate and pay the tax by the due date (generally the 15th of the following month).
- File the return (generally by the 18th) and keep the reconciliation with the filed return.
Frequent causes of differences
| Difference | Usual cause |
|---|---|
| Books higher than e-invoices | Invoices not reported, rejected, or stuck in an outage queue |
| E-invoices higher than books | Duplicates reported after a timeout; invoices cancelled in the books but not with FBR |
| Rate mismatch | Wrong sale type or SRO on the invoice line |
| Missing input tax | Supplier did not report, or reported against a wrong NTN |
If you use our software, Veridian E-invoicing Pakistan shows the books, FBR and Annex-C tie on its dashboard and exports an Annex-C reconciliation. Whatever system you use, our taxation and accounting practices can run the monthly reconciliation and return for you.
This guide is general information based on the law as we understand it on the date shown, not advice for your situation. Tax rules change often — please speak to us before acting on it. See our disclaimer.