Oman will introduce mandatory electronic invoicing in two phases from April 2027, with the rollout based on taxpayers’ annual revenue and preceded by a voluntary pilot involving 100 selected companies.
Oman has amended its Value Added Tax Law Regulations to introduce a two-phase mandatory electronic invoicing regime, with the first group of taxpayers required to comply from 1 April 2027.
Two-phase implementation
Decision No. 189/2026, issued on 9 August 2026 by the tax authority, sets the rollout according to an annual revenue threshold of OMR 5 million. Taxpayers with annual revenue exceeding OMR 5 million will enter the regime on 1 April 2027, while those with annual revenue not exceeding OMR 5 million will follow from 1 October 2027.
The revised schedule replaces the earlier timeline, which had proposed implementation for large VAT-registered taxpayers from 1 February 2027 and other VAT-registered taxpayers from 1 August 2027.
Electronic invoice requirements
Under the amended Regulations of the Value-Added Tax Law, an approved and secure electronic tax invoice must be issued and retained under a unique invoice numbering. The requirement applies to taxable supplies, including supplies to a non-taxpayer and supplies made by a taxable person for their own purposes, as well as deemed supplies and payments received before the supply date.
Electronic tax invoices must be issued through an electronic system connected to an e-invoicing service provider accredited by the Tax Authority and must meet specified technical and mandatory data requirements.
Paper invoices, PDF invoices and digital images sent by email will not qualify as electronic tax invoices once the new requirements take effect.
Pilot phase
The Tax Authority plans to begin a voluntary pilot at the end of August 2026 involving 100 selected companies. The pilot will be used to test the system and assess its readiness ahead of the mandatory rollout.
The e-invoicing system will use the approved XML format, allowing invoice data to be exchanged and processed electronically. In business-to-business transactions, invoices will be exchanged between sellers’ and buyers’ systems through accredited e-invoicing service providers.
The reform establishes the legal framework for Oman’s Fawtara system and is intended to strengthen tax compliance, improve invoice data quality and support the digitalisation of tax administration.
