Tag: billing

A professional invoice is more than a payment request—it’s a legal document, a reflection of your brand, and for GST-registered businesses in Pakistan, a compliance requirement. This guide covers everything you need to create invoices that get you paid faster while keeping FBR happy.

What is an Invoice?

An invoice (or bill/فاکچر) is a commercial document issued by a seller to a buyer detailing the products or services provided, quantities, prices, and payment terms. In Pakistan, invoices serve multiple purposes:

• Payment Request: Formally asks customers to pay
• Legal Record: Proof of transaction for disputes
• Tax Document: Required for GST compliance
• Accounting Record: Basis for accounts receivable
• Business Proof: Required for bank loans, tenders

Invoice vs Receipt vs Bill

Document	When Issued	Purpose
Invoice	Before/at time of sale	Request payment
Receipt	After payment received	Confirm payment
Bill	Same as invoice (informal term)	Request payment

Essential Elements of a Pakistani Invoice

Every invoice should include these elements:

1. Your Business Information

• Business/Company name
• Complete address
• Phone number and email
• NTN (National Tax Number)
• STRN (Sales Tax Registration Number) – if GST registered
• Logo (recommended for professionalism)

2. Customer Information

• Customer/Business name
• Address
• Contact details
• Customer NTN/STRN (for B2B tax invoices)

3. Invoice Details

• Invoice Number: Unique sequential number (e.g., INV-2025-001)
• Invoice Date: Date of issue
• Due Date: When payment is expected
• Reference/PO Number: Customer’s purchase order (if applicable)

4. Line Items

• Description of goods/services
• Quantity
• Unit price (before tax)
• Total per item
• HSN/PCT codes (for certain goods)

5. Tax Information

• Subtotal (before tax)
• GST/Sales Tax amount (shown separately)
• GST rate applied (18% standard)
• Other taxes if applicable
• Grand Total

6. Payment Information

• Payment terms (Net 30, Due on Receipt, etc.)
• Accepted payment methods
• Bank account details (for bank transfer)
• JazzCash/Easypaisa numbers (if applicable)

FBR Tax Invoice Requirements

For GST-registered businesses, FBR mandates specific invoice requirements:

• Seller’s name, address, and STRN
• Buyer’s name, address, and STRN (for registered buyers)
• Date of issue
• Description of goods/services
• Quantity and value
• Amount of sales tax charged (separately shown)
• Total value including tax
• Unique serial number

Important: Invoices not meeting these requirements may not be accepted for input tax credit claims by your customers.

How to Calculate GST on Invoices

Adding GST to Price

If your price is Rs. 10,000 (exclusive of tax):

• GST (18%) = Rs. 10,000 × 0.18 = Rs. 1,800
• Total Invoice = Rs. 11,800

Extracting GST from Inclusive Price

If total is Rs. 11,800 (inclusive of tax):

• Taxable Value = Rs. 11,800 ÷ 1.18 = Rs. 10,000
• GST = Rs. 11,800 – Rs. 10,000 = Rs. 1,800

Modern accounting software handles these calculations automatically.

Creating Invoices: Three Methods

Method 1: Word/Excel Templates

Pros: Free, flexible, familiar

Cons: Manual calculations, no tracking, error-prone

Best for: Very small businesses with few invoices monthly

Steps:

1. Download a template or create your own
2. Add your business details (save as master template)
3. For each invoice: copy template, fill in customer and item details
4. Calculate totals and GST manually
5. Save as PDF and send to customer
6. Track payment status separately

Method 2: Online Invoice Generators

Pros: Free, professional templates, some tracking

Cons: Limited customization, may lack Pakistan GST support

Best for: Freelancers, service providers with moderate volume

Method 3: Accounting Software

Pros: Automatic calculations, GST compliance, payment tracking, financial reports, customer history

Cons: Monthly cost

Best for: Any business serious about getting paid and staying compliant

With software like HysabOne:

1. Select customer (auto-fills their details)
2. Add items from your product list
3. GST calculates automatically
4. Send via email or WhatsApp directly
5. Track payment status in dashboard
6. Automatic reminders for overdue invoices

Invoice Best Practices

For Faster Payment

• Invoice Immediately: Send invoice same day as delivery/service
• Clear Due Date: “Due by 15 Jan 2025” not “Net 30”
• Easy Payment Options: Bank transfer, JazzCash, Easypaisa details
• Professional Appearance: Clean design builds trust
• Follow Up: Polite reminder before and after due date

For Compliance

• Sequential Numbers: No gaps in invoice numbers
• Separate GST: Always show tax amount separately
• Complete Details: All FBR-required fields
• Keep Records: Maintain copies for minimum 6 years

Common Mistakes to Avoid

• Missing or incorrect STRN/NTN
• GST calculation errors
• Unclear payment terms
• Sending invoices late
• Not following up on overdue payments
• Inconsistent invoice numbering

Sending Invoices in Pakistan

Email

Professional and provides delivery proof. Always send as PDF attachment with brief message.

WhatsApp

Very common in Pakistan. Quick delivery and read confirmation. Send PDF attachment, not just image.

Physical Copy

Still required for some government/corporate clients. Keep signed delivery acknowledgment.

Frequently Asked Questions

Conclusion

Professional invoicing is fundamental to business success. It affects how quickly you get paid, your legal compliance status, and how customers perceive your business. Invest time in setting up proper invoicing—whether through templates or accounting software—and maintain consistency.

For GST-registered businesses, proper invoicing isn’t optional—it’s a legal requirement with real penalties for non-compliance. Modern software makes compliance easy while saving hours of manual work.

Ready to create professional invoices in seconds? Try HysabOne with built-in GST-compliant invoicing, WhatsApp sharing, and automatic payment tracking.