# What must a sales tax invoice issued by a wholesaler or distributor show?

Source: https://qanoondigest.com/faq/wholesalers-distributors/sales-tax-invoice-details-distributor
Law current to: 30 June 2026. Reviewed: 2026-09-25. Checked line by line against the law: not yet.

> This is not legal or tax advice. Qanoon Digest is an independent publication and is not affiliated with, endorsed by, or connected to the Federal Board of Revenue or the Government of Pakistan. Content is a plain-language summary of publicly available FBR documents and may be out of date or incomplete. Always verify against the official document before acting, and consult a qualified professional for your situation.

## Short answer

Section 23(1) of the Sales Tax Act, 1990 requires a serially numbered tax invoice, in Urdu or English, at the time of supply, showing the supplier's and recipient's name, address and registration number, the date, description and quantity, value exclusive of tax, sales tax, and value inclusive of tax. Only one invoice may be issued per supply.

**Applies to:** Registered wholesalers, distributors and dealers who issue sales tax invoices on taxable or exempt supplies of goods.

A sales tax invoice is the document that carries tax from one business to the next. The seller's invoice is the buyer's evidence for input tax under section 7(2), so a wholesaler's invoice has to satisfy section 23 of the Sales Tax Act, 1990 for its customers as well as for itself.

## What particulars does section 23(1) require?

Section 23(1) requires a registered person making a taxable supply to issue a serially numbered tax invoice at the time of supply of goods, in Urdu or English, containing:

| Clause | Particular |
| --- | --- |
| (a) | Name, address and registration number of the supplier |
| (b) | Name, address and registration number of the recipient, and, for supplies by a manufacturer or importer to an unregistered distributor, the NIC or NTN of that distributor |
| (c) | Date of issue of invoice |
| (d) | Description and quantity of goods (for textile yarn and fabric, including count, denier and construction) |
| (e) | Value exclusive of tax |
| (f) | Amount of sales tax |
| (g) | Value inclusive of tax |

## What did the Finance Act, 2026 change?

The Finance Act, 2026 substituted the opening words so that a registered person making a taxable "as well as exempt supply" shall issue a tax invoice, including an advance receipt invoice, "bearing a verifiable and unique FBR invoice number". The consolidated text as printed keeps the older words "supply shall issue a serially numbered tax invoice" after the new expression, so the sentence does not read cleanly. The official PDF should be checked on this point.

Two new provisos to clause (b) say that the Board may notify persons allowed to issue an advance receipt invoice within the notified system, and that the verifiable and unique FBR invoice number condition applies from the time the Board notifies. An Explanation defining "ordinary consumer" still sits under clause (b), although the current clause does not use that term.

## What other rules apply to the invoice?

The provisos after clause (g) add three rules:

1. The Board may notify modified invoices for different persons or classes.
2. "Not more than one tax invoice shall be issued for a taxable supply."
3. Added by the Finance Act, 2025: where goods are transported or supplied, the registered person shall ensure the generation and linkage of the tax invoice with the e-Bilty generated under section 40C of the Sales Tax Act and section 83C of the Customs Act, 1969.

Section 40C lets the Board specify persons or goods for electronic monitoring or tracking of production, sales, clearances and stocks, and sub-section (4) applies section 83C of the Customs Act mutatis mutandis. Section 83C(1) of the Customs Act (amended to 30 June 2025) requires any consignor, transporter, supplier or recipient causing inland movement of goods to electronically generate, carry, display or validate an e-bilty through the Cargo Tracking System.

Section 23(2) says no person other than a registered person or a person paying retail tax shall issue an invoice. Sub-sections (3) to (6) cover electronic invoices, the Board's power over issuance and authentication, and integration with the Board's computerised system; the related page on electronic invoicing covers those.

## Worked example (illustrative figures)

Hamza Traders, a registered distributor of detergents in Hyderabad, delivers 200 cartons by truck to Bilal Store, a registered retailer. The amounts are invented. The example assumes the goods are taxed at the standard rate in section 3(1), "eighteen per cent of the value", with no special rate or exemption applying.

| Invoice field | Entry |
| --- | --- |
| Supplier (a) | Hamza Traders, its address and registration number |
| Recipient (b) | Bilal Store, its address and registration number |
| Date (c) | 14 October 2026 |
| Description and quantity (d) | Detergent powder 1 kg, 200 cartons |
| Value exclusive of tax (e) | Rs. 400,000 |
| Sales tax (f) | Rs. 400,000 x 18% = Rs. 72,000 |
| Value inclusive of tax (g) | Rs. 400,000 + Rs. 72,000 = Rs. 472,000 |

Because the goods move by truck, the third proviso requires the invoice to be linked to the e-Bilty. Hamza Traders issues one invoice for this supply, not a second one for the same delivery.

## What if the invoice is missing a particular?

For the buyer, section 7(2)(i) requires a tax invoice in its name and bearing its registration number before input tax is deducted. For a seller that supplies unregistered distributors, section 8(1)(m) disallows input tax attributable to those supplies, on a pro-rata basis, where the invoices do not bear the recipient's NIC or NTN as section 23 requires.

## Common mistakes

- **Leaving out the buyer's registration number.** Clause (b) requires it, and the buyer needs it under section 7(2)(i).
- **Issuing a second invoice for the same supply.** The second proviso to clause (g) forbids it.
- **Treating e-Bilty as a transporter's matter only.** The third proviso places the linkage duty on the registered person supplying the goods.
- **Assuming exempt supplies need no invoice.** The Finance Act, 2026 wording refers to taxable "as well as exempt" supply.

## What to check in the official text

Read sections 3, 7, 8, 23 and 40C of the Sales Tax Act, 1990 as amended to 30 June 2026, and section 83C of the Customs Act, 1969. The date from which the verifiable FBR invoice number applies, any modified invoice formats, and e-Bilty procedures are set by Board notifications that this site does not hold.

## Frequently asked

### Does a distributor's invoice need a verifiable FBR invoice number?

Section 23(1), as substituted by the Finance Act, 2026, refers to a tax invoice bearing a verifiable and unique FBR invoice number. A proviso says that condition applies from the time the Board notifies, so the start date depends on a Board notification.

### Can an unregistered wholesaler issue a sales tax invoice?

No. Section 23(2) says no person other than a registered person or a person paying retail tax shall issue an invoice under section 23.

### When must the NIC or NTN of the buyer appear on the invoice?

Clause (b) of section 23(1) requires the NIC or NTN of an unregistered distributor on supplies by a manufacturer or importer to that distributor. Section 8(1)(m) disallows input tax, pro rata, attributable to supplies to unregistered distributors where the invoices do not bear it.

## Citations

- [Sales Tax Act, 1990, section 23 (Tax Invoices)](https://qanoondigest.com/acts/sales-tax-act-1990/sales-tax-act-1990-2026-06-30#23-tax-invoices), as amended to 2026-06-30: "Provided further that not more than one tax invoice shall be issued for a taxable supply" Official source: https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf
- [Sales Tax Act, 1990, section 40C (Monitoring or Tracking by Electronic or other means)](https://qanoondigest.com/acts/sales-tax-act-1990/sales-tax-act-1990-2026-06-30#40c-monitoring-or-tracking-by-electronic-or-other-means), as amended to 2026-06-30: "the Board may, by notification in the official Gazette, specify any registered person or class of registered persons or any good or class of goods in respect of which monitoring or tracking of production, sales, clearances, stocks or any other related activity may be implemented through electronic or other means" Official source: https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf
- [Sales Tax Act, 1990, section 8 (Tax credit not allowed)](https://qanoondigest.com/acts/sales-tax-act-1990/sales-tax-act-1990-2026-06-30#8-tax-credit-not-allowed), as amended to 2026-06-30: "on pro-rata basis, for which sale invoices do not bear the NIC number or NTN as the case may be, of the recipient as stipulated in section 23." Official source: https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf
- [Customs Act, 1969, section 83C (Cargo Tracking System and e-Bilty mechanism)](https://qanoondigest.com/acts/customs-act-1969/customs-act-1969-2025-06-30#83c-cargo-tracking-system-and-e-bilty-mechanism), as amended to 2025-06-30: "shall be required to electronically generate, carry, display or validate an e-bilty through the Cargo Tracking System." Official source: https://download1.fbr.gov.pk/Docs/20258121285942396CustomsAct1969(June2025)-(12.8.25).pdf
- [Sales Tax Act, 1990, section 7 (Determination of tax liability)](https://qanoondigest.com/acts/sales-tax-act-1990/sales-tax-act-1990-2026-06-30#7-determination-of-tax-liability), as amended to 2026-06-30: "(2) A registered person shall not be entitled to deduct input tax from output tax unless,-" Official source: https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf
- [Sales Tax Act, 1990, section 3 (Scope of tax)](https://qanoondigest.com/acts/sales-tax-act-1990/sales-tax-act-1990-2026-06-30#3-scope-of-tax), as amended to 2026-06-30: "(1) Subject to the provisions of this Act, there shall be charged, levied and paid a tax known as sales tax at the rate of" Official source: https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf