Written by Hamza Shahnawaz in Taxation SRO 2063(I)/2026 requires registered businesses to issue advance receipt invoices, declare output tax upon receiving payments and electronically link invoices with final sales invoices. ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a new mechanism for accounting for advance payments received against supplies under the Sales Tax Rules, 2002. The FBR notified the changes through SRO 2063(I)/2026 on Thursday, introducing Rule 160 to establish procedures for issuing invoices, declaring output tax and adjusting sales tax when businesses receive advance payments. Under the new Rule 160, registered persons covered by Section 23 of the Sales Tax Act, 1990, receiving advance payments against supplies must issue an advance receipt invoice at the time of receiving each payment. The invoice must contain the particulars specified under Section 23, to the extent applicable. Businesses are also required to account for and declare the output tax payable in the sales tax return for the tax period in which the advance payment is received. The advance receipt invoice will be treated as a tax invoice for the purposes of Sections 7 and 8 of the Sales Tax Act. Where businesses receive multiple advance payments against the same supply, they must issue a separate receipt invoice for each payment. Subsequent invoices must be electronically linked with previous invoices to ensure complete traceability. When the actual supply takes place, businesses must issue a final sales tax invoice…