Written by Hamza Shahnawaz in Energy, Taxation New Sales Tax General Order allows exploration and production companies to issue digital invoices through operators, with compliance starting from December 2026. ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a simplified procedure for oil and gas exploration and production (E&P) companies to issue electronic sales tax invoices and integrate their invoicing systems with the tax authority’s computerised system. Through Sales Tax General Order (STGO) No. 36 of 2026, issued under IR Operations, the FBR has addressed difficulties faced by E&P companies in complying with mandatory electronic invoicing requirements. The order, titled Sales Tax General Order for Digital Invoicing Compliance, 2026 for E&P Companies, will apply to sales tax returns for December 2026 and subsequent months. The FBR issued the directive under Section 55, read with Section 23 of the Sales Tax Act, 1990, which empowers the board to require registered taxpayers to integrate their electronic invoicing systems for real-time reporting of sales. The electronic invoicing framework is also governed by Chapter XIV of the Sales Tax Rules, 2006, introduced through SRO 69(I)/2025 and subsequently expanded through SRO 1852(I)/2025. Digital invoicing procedure for E&P companies Under the new procedure, each joint venture partner operating under a Petroleum Concession Agreement (PCA) will issue a digital invoice for its respective share based on the invoice issued by the operator of the relevant PCA or lease. However,…