How to Integrate POS with FBR

Integrating a Point of Sale (POS) system with the Federal Board of Revenue (FBR) is no longer optional for many retailers in Pakistan. FBR’s POS Integration initiative aims to bring transparency to retail transactions by connecting sales data directly with the tax authority in real time.

In this guide, you’ll learn how to integrate POS with FBR, whether you operate a physical store, an online business, or both. This article also covers bank account registration, online integration methods, and common mistakes retailers face during the process.

What Is FBR POS Integration?

FBR POS integration connects your billing or POS system directly to FBR’s servers. Every sales invoice generated at your store is reported instantly to FBR, ensuring accurate sales tax documentation and compliance with Pakistan’s tax laws.

Retailers required to integrate include:

Tier-1 retailers
Chain stores
Shopping mall outlets
High-volume retail businesses
Certain eCommerce businesses operating in Pakistan

Failure to integrate can lead to penalties, sealing of premises, or disconnection from utilities.

Why POS Integration with FBR Is Mandatory

FBR introduced POS integration to:

Reduce under-reporting of sales
Improve tax compliance
Digitize retail invoicing
Ensure real-time sales visibility

For retailers, compliant integration also brings benefits:

Automated tax reporting
Reduced audit risks
Accurate sales records
Eligibility for sales tax input claims

Requirements Before You Integrate POS with FBR

Before starting the integration process, ensure the following:

1. NTN and STRN Registration

Your business must be registered with FBR and have:

National Tax Number (NTN)
Sales Tax Registration Number (STRN)

2. Active FBR Iris Account

All integration activities are managed through FBR Iris Portal.

3. POS Software Compatibility

Your POS system must support:

Real-time API integration
JSON invoice formats
Secure token-based authentication

4. Registered Business Bank Account

You must link a verified bank account with FBR.

How to Add Bank Account in FBR (Mandatory Step)

Before POS integration, your bank account must be added and verified.

Steps to Add Bank Account in FBR

Log in to FBR Iris Portal
Go to Registration > Bank Accounts
Add: Bank name Branch code IBAN
Submit for verification
Wait for FBR approval (usually 2–5 working days)

This bank account is used for sales tax payments, refunds, and compliance verification.

How to Integrate POS with FBR in Pakistan (Step-by-Step)

Step 1: Register as POS-Integrated Retailer

You will receive:

POS Integration ID
API credentials
Sandbox access (for testing)

Step 2: Configure POS System

Your POS provider or technical team will:

Map invoice fields according to FBR format
Configure tax rates
Set invoice numbering rules
Enable real-time data push

Each invoice must include:

NTN
STRN
POS ID
Invoice number
Date and time
Item details
Sales tax amount
Total payable amount

Step 3: Connect with FBR API

Using FBR-provided APIs, your POS sends invoice data directly to FBR servers.

This includes:

Token authentication
Secure encryption
Error handling responses

Once connected, invoices are validated instantly.

Step 4: Testing and Sandbox Approval

Before going live:

Test invoices through FBR sandbox
Fix validation errors
Get final approval from FBR

Step 5: Go Live

After approval:

Switch to live environment
Start reporting real-time invoices
Monitor invoice acknowledgment status

How to Integrate POS with FBR Online

Online integration follows the same structure but includes additional elements for eCommerce businesses.

Key requirements:

Real-time invoice generation
Sales tax calculation at checkout
Invoice transmission before order completion

Online businesses must ensure:

No invoice bypass
Automated failure alerts
Backup invoice queues

How to Integrate POS with Website

If your POS is connected to a website or online store:

Website checkout sends order data to POS
POS generates FBR-compliant invoice
Invoice is sent to FBR instantly
Order confirmation is completed

This setup is common for:

Retailers with physical + online stores
Shopify or custom eCommerce platforms
Omnichannel businesses

How to Integrate POS with FBR App

Some POS vendors provide mobile apps with FBR integration.

Key points:

App must be FBR-certified
Supports real-time invoice sync
Works with handheld devices or tablets

Retailers should verify:

Offline invoice handling
Automatic sync when internet restores
FBR acknowledgment storage

Common Issues During POS–FBR Integration

Retailers often face:

Incorrect tax mapping
Duplicate invoice numbers
Token expiration errors
API timeout failures
Bank account verification delays

These issues usually occur due to:

Outdated POS software
Manual overrides
Poor error handling

Compliance Tips for Retailers

Never issue manual invoices after integration
Monitor daily invoice acknowledgment reports
Keep POS software updated
Train staff on compliant billing
Maintain internet backup

Why Choose a Professional POS Integration Partner

FBR POS integration is technical and compliance-driven. A professional partner helps with:

POS readiness assessment
API configuration
Sandbox testing
Go-live support
Ongoing compliance monitoring

At OhadTech, we help retailers across Pakistan integrate POS systems with FBR while ensuring compliance, stability, and minimal business disruption.

How to Add Bank Account in FBR - Final Thoughts

Understanding how to integrate POS with FBR in Pakistan is essential for retailers operating under FBR’s POS Integration mandate. Whether you’re integrating a physical POS, website checkout, or mobile app, accuracy and real-time reporting are critical.

Done correctly, POS-FBR integration not only ensures compliance but also improves financial visibility and operational control.

If you’re planning to integrate or facing compliance challenges, working with an experienced POS integration partner can save time, cost, and regulatory risk.

How to Integrate POS With Website - FAQs

What are FBR POS charges in pakistan?

FBR does not charge any fee for POS integration in Pakistan; the system and APIs are provided free of cost by FBR.

Retailers only bear costs related to POS software upgrades, integration services, or vendor support, which vary by provider.

What is the full form of POS in FBR Pakistan?

In FBR Pakistan, POS stands for Point of Sale, referring to the system used to record retail transactions. It is the billing platform that connects sales invoices directly with FBR for real-time tax reporting.

Is FBR makes POS integration mandatory for some wholesalers retailers in Pakistan?

Yes, FBR has made POS integration mandatory for certain wholesalers and retailers classified as Tier-1 under sales tax rules. These businesses must report sales in real time through FBR-connected POS systems to remain compliant.