MUSCAT: The Tax Authority has issued Decision No 189/2026 amending provisions of the Executive Regulations of the Value Added Tax (VAT) Law, introducing requirements for tax invoices to be issued, transmitted and stored in an approved and secure electronic format.
Idris bin Hamoud al Rashdi, Director of the Electronic Invoicing Project at the Tax Authority, said the electronic tax invoicing project is a major step in developing Oman’s tax system. It aims to strengthen tax compliance, increase transparency in commercial transactions, improve the efficiency of tax procedures, support digital transformation and create a more efficient and reliable business environment.
He explained that an electronic tax invoice is issued, transmitted and stored in an approved electronic format in line with technical requirements set by the Tax Authority. The system will use XML, allowing electronic systems to read, analyses and process invoice data automatically, while reducing errors and the possibility of manipulation.
For business-to-business transactions, invoices will be exchanged between the electronic systems of sellers and buyers through electronic invoicing service providers approved by the Tax Authority. The process will take place on a near-real-time basis with minimal human intervention.
Al Rashdi stressed that paper invoices, PDF invoices and digital images of invoices sent by email will not qualify as electronic tax invoices under the new requirements. Such formats will no longer be accepted once the amendments to the Executive Regulations of the VAT Law come into effect.
All VAT-registered companies 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 RO 5 million. The second phase will begin on October 1, 2027, covering companies with annual supplies below RO 5 million.
The Tax Authority has selected 100 companies to voluntarily participate in the pilot phase, scheduled to begin at the end of August. The pilot will test the system and assess its readiness ahead of wider implementation.
Al Rashdi said several participating companies had already started preparations for early adoption and praised their cooperation with the Tax Authority.
He added that electronic tax invoices must be issued through an electronic system connected to an approved electronic invoicing service provider. They must be secure, verifiable and contain all mandatory information required under the VAT Law and its Executive Regulations, as well as technical requirements specified by the Tax Authority.
Approved service providers will provide technical support to companies to configure their systems and meet the required standards.
Translated by: Muslem al Lawati
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