Debit notes and credit notes in FBR digital invoicing, explained

In FBR digital invoicing, a credit note reduces the value of an invoice FBR has already accepted, typically for a return, a fault or an agreed after the fact discount, and a debit note increases it when the original sale undercharged. Neither replaces the original: once FBR returns an invoice reference number the record is permanent and there is no edit or delete, so the correction has to be issued as its own document referencing the original.

Credit note: when you owe the buyer value back

A credit note reduces what an earlier invoice said the buyer owed. The most common trigger is a return, goods come back, or turn out faulty, or an agreed discount is applied after the original invoice was already issued and accepted by FBR. Rather than editing the original invoice, which FBR's system does not allow once accepted, you issue a new document that formally reduces its value.

Debit note: when the buyer owes you more

A debit note works the other way. It increases the value of an earlier invoice, for example the original sale undercharged, or an additional charge applies after the fact that was not on the first invoice. Like a credit note, it is a new document tied back to the original sale, not an edit of it. That is the position under rule 21(1) of the Sales Tax Rules 2006. One caveat worth knowing if you issue upward revisions regularly: the wording of DI API error 0067 reads as though it caps a debit note at the original invoice sales tax, which would sit oddly with rule 21(1). The published documents do not resolve the tension, and we work through both readings in FBR debit notes against your software debit notes.

The rule that makes both different from a normal invoice

Both documents have to reference the invoice they are adjusting. FBR's Digital Invoicing API requires a field called invoiceRefNo for this, and it only applies to debit notes in the current API specification: the original FBR-issued invoice number the correction points back to. The format is specific rather than free text: 22 digits when the seller is identified by NTN, 28 digits when identified by CNIC. Get the reference wrong and the correction cannot be matched to the sale it is supposed to adjust.

This is the detail that trips people up who assume a debit or credit note is "just another invoice with a different label." It is not. It is structurally a correction document, and FBR's validation treats the missing or malformed reference as an error, the same way a missing HS code or tax rate would be.

Why you cannot just edit the original

Once FBR accepts an invoice and returns an invoice reference number, that record exists on FBR's side and you cannot quietly revise it. There is one narrow exception, added after this page was first written. Sales Tax General Order 01 of 2026 directs that an integrated person may cancel, delete or edit a valid electronic sales tax invoice generated due to a bonafide mistake, through the Board's computerized system, within seventy two hours of its generation. Anything after that window needs the prior approval of the concerned Commissioner Inland Revenue. The statutory basis is sub sections (5) and (6) of section 23 of the Sales Tax Act 1990. Outside that window the position below still holds: there is no edit or delete. This is by design, the whole point of real-time invoicing is that FBR has an immutable record the moment a sale happens, not one your business can quietly revise later. Debit and credit notes exist specifically because corrections still need to happen in the real world, just through a new, traceable document rather than a silent edit.

General information, not tax advice. Confirm the correct treatment for your specific transactions with your tax consultant.