# STGO 25: no sales tax or digital invoice on factory-to-warehouse transfers

Source: Searchable (https://searchable.pk/news/business/stgo-25-no-sales-tax-or-digital-invoice-on-factory-to-warehouse-transfers)
Type: News article
Author: Searchable Editorial
Published: 29 Sept 2026
Updated: 29 Sept 2026
Retrieved: 30 Sept 2026

> The FBR says moving your own stock between a factory and warehouse on the same STRN is not a supply. You need a numbered Stock Transfer Note, and checkposts may not hold the truck.

**Sales Tax General Order (STGO) 25 of 2026:** the FBR has told its field offices that moving your own goods from your **factory to your own warehouse** is **not a taxable supply**, as long as both premises are on the **same sales tax registration number (STRN)**. That means no sales tax, and **no digital invoice**, on the trip. What it needs instead is a **Stock Transfer Note** travelling with the goods.

The order answers a problem manufacturers had been raising since digital invoicing was extended: officials and checkposts treating an internal stock move as a sale, demanding an invoice and holding trucks. The Karachi Chamber of Commerce and Industry welcomed it on 28 September; KCCI president Rehan Hanif said it would "reduce uncertainty for businesses and facilitate uninterrupted movement of goods", APP reported.

## What STGO 25 requires

| Condition | What it means for you |
| --- | --- |
| Same STRN at both ends | Factory and warehouse must be registered under one sales tax registration number |
| Stock Transfer Note (STN) | Marked "Stock Transfer, Non-Taxable Supply", sequentially numbered, carried with the cargo |
| Value on the STN | At cost, for inventory accounting only |
| Receipt | The warehouse manager confirms receipt and updates stock records |
| Factory records | Updated under Rule 22 of the Sales Tax Rules |

**If the warehouse has its own separate STRN, the move is a taxable supply** and needs a digital invoice like any sale. That is the line to check before you rely on the order.

## What officials may no longer do

According to the order, as reported by Dawn and APP:

- An STN is not to be treated as a violation when both premises share a registration.
- Officers should not demand extra documents such as the driver's identity, or detain vehicles, without proper grounds.
- Physical inspection of goods in transit is limited. The exception is **Third Schedule** goods (sold at printed retail price), which can still be checked for retail price marking.

## What to do this week

1. **Check your registration.** On IRIS, confirm the warehouse address is listed as a business premises under your STRN. If it is not, add it before relying on STGO 25.
2. **Print STN books or set up a numbered STN in your ERP.** Sequential numbering is a condition, so a handwritten slip with no series will not do.
3. **Keep a copy of STGO 25 with drivers.** It is the fastest answer at a checkpost.
4. **Sales to customers are unchanged.** Every actual supply still needs a digital invoice and output tax at 18 percent. Work out tax-inclusive and exclusive prices with our [sales tax calculator](/tools/tax/sales-tax-calculator).

The order follows a run of FBR changes for sales tax filers this month, including e-scrutiny under SRO 1655, which gives registered persons seven days to fix flagged errors ([our report](/news/business/fbr-sales-tax-e-scrutiny-sro-1655-gives-you-7-days-to-fix-errors-flagged-on-iris)).

## Frequently asked questions

**Is sales tax charged when goods move from a factory to a warehouse?**

Not when both premises are under the same sales tax registration number. Under STGO 25 of 2026 it is a stock transfer, not a supply, and needs a numbered Stock Transfer Note instead of a digital invoice.

**When does a factory-to-warehouse transfer need a digital invoice?**

When the warehouse has its own separate sales tax registration number. The movement is then a taxable supply.

## Sources

- No tax on factory to warehouse movements (Dawn): https://www.dawn.com/news/2033429/no-tax-on-factory-to-warehouse-movements
- KCCI terms FBR's STGO 25 as an important step towards facilitating businesses (APP): https://www.app.com.pk/business/kcci-terms-fbrs-stgo-25-as-an-important-step-towards-facilitating-businesses/
- Federal Board of Revenue (FBR): https://www.fbr.gov.pk/

How to cite: "STGO 25: no sales tax or digital invoice on factory-to-warehouse transfers", Searchable, 29 Sept 2026, https://searchable.pk/news/business/stgo-25-no-sales-tax-or-digital-invoice-on-factory-to-warehouse-transfers