MUSCAT: Oman’s Tax Authority has issued Decision No. 189/2026 amending key provisions of the Executive Regulations of the Value Added Tax Law, introducing a mandatory electronic tax invoicing framework that will be implemented in phases from April 2027.
The decision amends the Executive Regulations issued under the VAT Law promulgated by Royal Decree No. 121/2020 and introduces new provisions governing how tax invoices must be generated, secured, retained and exchanged electronically.
Under the amended Article 143, a taxable person will be required to issue tax invoices in an approved and secure electronic format, with measures in place to ensure the integrity and retention of each invoice. Every electronic invoice must also carry a unique number.
The requirement applies when a taxable person makes supplies, including supplies to a non-taxable person or to a taxable person who allocates the supplies for personal use. It also applies to deemed supplies, cases where payment is received wholly or partially before the date of supply, and any other circumstances prescribed under the Executive Regulations.
The amendments also provide that simplified tax invoices must be issued within the same timeframes specified under Article 143, bringing them within the electronic invoicing framework.
New provisions numbered Articles 143 bis, 143 bis 1 and 143 bis 2 have also been added to the Executive Regulations.
Under Article 143 bis, the Tax Authority will notify taxpayers of the companies licensed to provide tax invoicing services in an approved electronic format. This means taxpayers will be required to use service providers recognised by the authority when implementing their electronic invoicing systems.
Article 143 bis 1 places specific technical and security obligations on taxable persons. Taxpayers must take the necessary measures to ensure electronic tax invoices are issued securely through an electronic system and comply with the technical specifications prescribed by the Tax Authority.
The system must be protected against breaches and unauthorised access, while taxpayers will also be required to put in place procedures to deal with emergencies, system breakdowns and technical malfunctions.
The regulations further require businesses to establish mechanisms for recovering data or information if it is lost for any reason, with the aim of ensuring that electronic invoicing systems continue to operate efficiently and effectively without interruption.
The amendments also provide for limited exemptions in certain circumstances.
Under Article 143 bis 2, the Chairman of the Tax Authority may grant a taxpayer an exemption from issuing electronic tax invoices for a period determined by the authority, provided the taxpayer submits a formal request supported by relevant documents and acceptable reasons.
Any taxpayer granted such an exemption must continue to comply with other tax obligations, including submitting tax returns within the legally prescribed deadlines and paying taxes due within the stipulated timeframes.
The decision will be implemented in two phases.
The first phase will take effect on April 1, 2027, and will apply to taxpayers whose annual supplies exceed RO5 million.
The second phase will begin on October 1, 2027, covering taxpayers whose annual supplies do not exceed RO5 million.
The decision also stipulates that the amendments to the Executive Regulations will be formally adopted, while any existing provisions that contradict or conflict with the new decision will be repealed.
The decision will be published in the Official Gazette and will take effect in accordance with the phased implementation dates set for the different categories of taxpayers.
The new framework marks a major change in the way VAT-registered businesses in Oman issue and manage tax invoices, shifting invoicing from conventional formats towards approved, secure and regulated electronic systems.
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