Oman mandates e-invoicing for VAT-registered businesses from April 2027
Companies with annual supplies above OMR5 million covered first; others from October
Dubai: Oman’s Tax Authority on Sunday issued a decision introducing mandatory electronic invoicing for VAT-registered businesses from April 2027, as the sultanate moves to strengthen tax compliance, improve transparency and advance the digitalisation of its tax system.
Decision No. 189/2026, which amends provisions of the Executive Regulation of the Value Added Tax Law, requires tax invoices to be issued, transmitted and stored in an approved and secure electronic format that ensures the integrity and verifiability of invoice data.
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Implementation will take place in two phases. Companies with annual supplies exceeding OMR5 million will be required to adopt the system from April 1, 2027, while those below the OMR5 million threshold will come under the requirements from October 1, 2027.
All companies registered for VAT will be required to issue tax invoices electronically through the system approved by the Tax Authority.
Idris bin Hamoud Al Rashdi, Director of the Electronic Invoicing Project at the Tax Authority, said the initiative represented a significant step in developing Oman’s tax system and would strengthen compliance, increase transparency in commercial transactions and improve the efficiency of tax procedures.
Invoices will be generated in XML format, allowing electronic systems to automatically read, analyse and process the data. In business-to-business transactions, invoices will be exchanged almost instantly between sellers’ and buyers’ electronic systems through e-invoicing service providers approved by the Tax Authority, with little or no manual intervention.
Paper invoices, PDF invoices and digital images of invoices sent by email will not qualify as electronic tax invoices under the new requirements once the amendments take effect, Al Rashdi said.
Electronic invoices must be generated through a system connected to an accredited e-invoicing service provider and contain all mandatory information required under the VAT Law and its Executive Regulation, as well as meet the Tax Authority’s technical requirements.
Approved service providers will support businesses in preparing and integrating their systems to comply with the new rules.
Ahead of mandatory implementation, the Tax Authority has selected 100 companies to participate voluntarily in a pilot programme scheduled to begin at the end of August 2026. The pilot will test the system and assess its readiness, with some participating companies already preparing to integrate their systems.
The authority expects e-invoicing to reduce errors and manipulation while improving the quality, security and reliability of tax data. The system will also allow consumers to verify tax invoices, increasing confidence and transparency in commercial transactions and strengthening consumer protection.
The Tax Authority said the improved availability of accurate and secure economic and tax data would also support government decision-making and the development of economic policies and strategies.
The e-invoicing project forms part of Oman Vision 2040 and the National Digital Transformation Strategy, supporting the digitalisation of government procedures, greater integration between systems and the development of more efficient digital services.
