MUSCAT: Oman’s Tax Authority on Sunday issued Decision No. 189/2026 amending provisions of the Executive Regulation of the Value Added Tax Law, introducing mandatory electronic tax invoices issued in an approved and secure digital format.
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 and aims to strengthen tax compliance, improve transparency in commercial transactions and enhance the efficiency of tax procedures.
He said an electronic tax invoice must be issued, sent and stored in an approved electronic format in accordance with the technical requirements specified by the Tax Authority, ensuring the security, integrity and verifiability of the 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 or digital images of invoices sent by email will not be considered electronic tax invoices** under the new requirements once the amendments come into effect.
All companies registered for VAT will be required to issue their 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 before mandatory implementation.
Al Rashdi said the system would help reduce errors and manipulation while improving the reliability of tax invoices. It will also allow consumers to verify invoices, strengthen confidence in commercial transactions and protect consumer rights.
Electronic invoices must be generated through a system connected to an e-invoicing service provider accredited by the Tax Authority and must include all mandatory information required under the VAT Law and its Executive Regulation, along with the technical requirements set by the authority.
Approved service providers will support companies in preparing their systems to comply with the new requirements.
The Tax Authority said the project will also improve the quality of tax data, strengthen compliance and support decision-making based on accurate and secure information.
The e-invoicing initiative is among the national projects supporting Oman Vision 2040 and the National Digital Transformation Strategy, contributing to the digitalisation of government procedures, integration of systems and development of digital services.
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