What is FBR Integration

What is FBR Integration?

In the context of Pakistani business and taxation, FBR Integration refers to the process of connecting your software directly to the FBR’s systems via their published APIs (Application Programming Interfaces). This allows for the automated, real-time exchange of data, primarily for sales and purchase invoices to be reported directly to the FBR’s Real-Time Invoice Verification System (RTIVS).

This is a legal requirement under the Sales Tax Act, for registered persons.

Why is this a "Value-Added Service" (VAS) for Your Software?

Integrating with the FBR transforms your software from a simple record-keeping tool into an essential compliance engine. This is a powerful VAS because it:

Automates Mandatory Compliance: Saves users hours of manual work and eliminates the risk of human error in filing monthly sales tax returns.

Provides Real-Time Verification: Allows your users and their customers to instantly verify the authenticity of invoices, reducing the risk of fraud.

Enhances User Trust & Credibility: Positioning your software as "FBR Integrated" is a major selling point and a competitive necessity in the Pakistani market.

Reduces Audit Risk: Proper, automated integration ensures data consistency between the user's records and what FBR has, minimizing discrepancies that could trigger audits.

Creates a "Sticky" Product: Once a business integrates its entire sales and purchase workflow with your software for FBR compliance, it becomes very difficult for them to switch to a competitor.

Detailed Technical Integration Process

Here is a step-by-step guide to the integration details:

Phase 1: Prerequisites & on boarding with FBR

Become a POS (Point of Sale) / ERP Service Provider:
- You must formally register your company with the FBR .
- This involves submitting an application, company documents, and details about your business.
- FBR will issue POS ID and tocken.
Obtain Security Credentials:

Once approved, FBR will provide you with critical security credentials. The most important ones are:

- Client ID & Client Secret:Used to obtain the access token for all API calls.
- Username & Password:Specific to your service provider account.
- SSL Certificates:FBR APIs use HTTPS with mutual SSL (mTLS) authentication. You will need to install the FBR’s root certificate and use your own client certificate for a secure, two-way handshake.

Phase 2: Understanding the API Flow

The integration typically follows a standard O Auth 2.0 client credentials flow for server-to-server communication. Here is the detailed sequence:

What is FBR Integration