Oman to make electronic tax invoices mandatory

MUSCAT: Oman’s Tax Authority has issued a decision amending provisions of the Executive Regulation of the Value Added Tax Law, introducing mandatory electronic tax invoices in an approved and secure digital format.

According to the Oman Observer, Idris bin Hamoud Al Rashdi, Director of the Electronic Invoicing Project at the Tax Authority, said the initiative represents a significant step in developing Oman’s tax system.

He said the system aims to strengthen tax compliance, improve transparency in commercial transactions and enhance the efficiency of tax procedures.

Under the new requirements, an electronic tax invoice must be issued, sent and stored in an approved electronic format in accordance with technical requirements specified by the Tax Authority. The system is designed to ensure the security, integrity and verifiability of invoice data.

Invoices will be issued in XML format, allowing electronic systems to automatically read, analyse and process the information. In business-to-business transactions, invoices will be exchanged almost instantly between the seller’s and buyer’s electronic systems through e-invoicing service providers approved by the Tax Authority, without human intervention.

Al Rashdi clarified that paper invoices, PDF invoices and digital images of invoices sent by email will not qualify as electronic tax invoices once the amendments take effect.

All companies registered for VAT will be required to issue tax invoices electronically through the system approved by the Tax Authority.

Implementation will take place in two phases. The first phase will begin on April 1, 2027, covering companies with annual supplies exceeding RO5 million.

The second phase will begin on October 1, 2027, covering companies with annual supplies below RO5 million.

The Tax Authority has also selected 100 companies to participate voluntarily in a pilot phase scheduled to begin at the end of August 2026. The pilot will test the system and assess its readiness ahead of mandatory implementation.

Electronic invoices must be generated through a system connected to an e-invoicing service provider accredited by the Tax Authority. They must include all mandatory information required under the VAT Law and its Executive Regulation, as well as the technical requirements specified by the authority.

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