Written by Faisal Shahnawaz in Taxation FBR says goods moved between a factory and its own warehouse under the same STRN are not taxable supplies and do not require digital invoices. ISLAMABAD: The Federal Board of Revenue (FBR) has relaxed documentation requirements for the movement of goods from a factory to a warehouse owned by the same registered person, clarifying that such transfers do not constitute taxable supplies where both premises operate under the same Sales Tax Registration Number (STRN). The FBR issued Sales Tax General Order (STGO) No. 25 of 2026, titled “Movement of Goods from Factory to Registered Person’s Own Warehouse — Non-Applicability of Digital Invoicing and Prescribed Documentation”, setting out the procedure for such inter-premises movement. Under the order, the transfer of goods from a factory to the registered person’s own warehouse does not constitute a “supply” where both premises operate under the same STRN. Consequently, businesses are not required to issue a digital invoice or e-invoice for such transfers. However, businesses must document the movement through a prescribed non-fiscal Stock Transfer Note, provided in Annexure-A of the order. FBR clarifies tax treatment of stock transfers The FBR explained that the definition of “supply” under Section 2(33) of the Sales Tax Act, 1990, requires a sale or another transfer of the right to dispose of goods as owner. Where goods are moved between a factory and warehouse belonging to the same registered person, ownership remains unchanged and no consideration is involved. The movement therefore falls outside the sales tax charge under Section 3 of the Sales Tax Act. As a result, the requirement under Section 23 to issue a tax invoice does not arise. The provisions of Chapter XIV of the Sales Tax Rules, 2006, concerning the transmission of tax invoices for taxable supplies through a licensed integrator or PRAL, are also not applicable. Separate STRN changes tax treatment The FBR clarified that a different treatment applies where the receiving warehouse has a separate STRN. In such cases, the movement takes place between two distinct registered persons and is treated as…