Oman’s Tax Authority has signed an agreement, on 12 May 2025, with Omantel to introduce an electronic invoicing (e-invoicing) system as part of efforts to modernise the country’s tax administration.

The system aims to improve tax collection, enhance efficiency, and support digital integration in line with international practices. Omantel will lead the development of the platform, which will facilitate secure data exchange and help ensure compliance with global standards.

Oman will introduce mandatory e-invoicing in phases starting in 2026. A pilot for large businesses begins on 1 January, with mandatory rollout from July and full adoption by 2027. In 2025, companies must assess readiness and start integration based on the PEPPOL 5-corner model.

An electronic invoice is created and issued digitally, containing the details required by the OTA. It is not simply a scanned copy or digital replica of a paper invoice.

The agreement was signed by Nasser bin Khamis al Jashmi, Chairman of Oman’s Tax Authority, and Ghassan al Hashar, CFO of Omantel.

“This agreement marks a qualitative shift in the digital transformation of the tax sector,” said Jashmi. “The e-invoicing system will not only boost transparency and efficiency but also support small and medium-sized enterprises (SMEs) by simplifying tax procedures.”

The initiative supports Oman’s broader digital transformation plans under Vision 2040, including simplifying tax procedures for businesses.

Earlier, Oman’s Tax authorities announced the postponement of the mandatory B2B e-invoicing system to an unspecified date in 2025, citing technical challenges. Initially, the system was set to be introduced on a voluntary basis in April 2024, with mandatory implementation slated for October 2024. However, delays in detailed design and system specifications had led to the deferral.