Muscat: The Tax Authority today issued Decision No 189/2026 amending certain provisions of the Regulations of the Value-Added Tax Law, which include the issuance of tax invoices in an approved and secure electronic format that ensures their integrity and retention.
Idris bin Hamoud al Rashidi, Director of the E-Invoicing Project at the Tax Authority, affirmed that the electronic tax invoice project represents a qualitative leap in the development of the Sultanate of Oman's tax system. He stated that the project aims to enhance tax compliance, raise the level of transparency in commercial transactions and improve the efficiency of tax procedures, alongside supporting digital transformation and fostering a more efficient and reliable business environment.
In a statement to Oman News Agency (ONA), he explained that an electronic tax invoice is an invoice issued, transmitted and retained in an approved electronic format in accordance with the technical requirements specified by the Tax Authority, thereby ensuring data integrity, security and verifiability.
He elaborated that the implementation of the system contributes to reducing errors and manipulation by issuing invoices in the approved XML electronic format — a format that enables electronic systems to read, analyse and process data automatically. He noted that invoices are exchanged between the seller's electronic system and the buyer's electronic system in business-to-business transactions through e-invoicing service providers accredited by the Tax Authority, in near real-time and without human intervention.
He added that paper invoices, invoices issued in PDF format, or those sent as digital images via email do not qualify as electronic tax invoices under the new requirements and will not be recognised following the implementation of the recent amendments to the Regulations of the Value-Added Tax Law.
He pointed out that all companies registered for value-added tax will be obliged to issue their tax invoices electronically in accordance with the system approved by the Tax Authority. The implementation will proceed in two phases: the first phase, commencing on April 1, 2027, will cover companies with annual supplies exceeding RO 5 million; the second phase, commencing on October 1, 2027, will cover companies with annual supplies below this threshold.
He further stated that the Tax Authority has selected 100 companies to participate voluntarily in the pilot phase of the project, which will launch at the end of this August, with the aim of testing the system and assessing its readiness. He noted that a number of participating companies have already begun early preparations for system implementation, commending their cooperation with the Authority during the pilot phase.
He affirmed that the project will yield direct benefits for the end consumer by enhancing the reliability of tax invoices and enabling consumers to verify their authenticity — thereby reinforcing trust in commercial transactions and safeguarding consumer rights — alongside promoting transparency between sellers and buyers.
He clarified that the electronic tax invoice must be issued through an electronic system linked to an e-invoicing service provider accredited by the Tax Authority and must be secure and verifiable, containing all the mandatory data stipulated in the Value-Added Tax Law and its Regulations, in addition to the technical requirements specified by the Authority. He noted that accredited service providers offer technical support to companies to align their systems with the approved requirements.
He stated that the e-invoicing project represents a paradigm shift in the development of tax administration through the digitalisation of invoice issuance and exchange processes, improved data quality, enhanced tax compliance and data-driven decision-making based on accurate and secure information — all of which contribute to enhancing the efficiency of the tax system.
He added that the project is one of the national initiatives supporting Oman Vision 2040 and the National Digital Transformation Strategy; it contributes to the digitalisation of government procedures, enhances system integration, develops digital services and improves the efficiency of government service delivery using the latest technologies, in addition to providing economic data and statistics that support the formulation of policies and economic strategies. — ONA
Oman Observer is now on the WhatsApp channel. Click here
