Oman mandates e-invoicing for VAT-registered businesses from April 2027

Oman’s Tax Authority has mandated electronic invoicing for VAT-registered businesses starting April 2027, as part of efforts to enhance tax compliance and digitalization. Decision No. 189/2026, which updates the Executive Regulation of the Value Added Tax Law, stipulates that tax invoices must be issued, transmitted and stored electronically in a secure format.

The implementation will occur in two stages, with companies generating over OMR5 million in annual supplies required to adopt the system from April 1, while those below this threshold will need to comply from October 1, 2027. This move aims to boost transparency, accuracy, and efficiency in commercial transactions, as well as streamline tax procedures.

All VAT-registered businesses will be required to issue electronic tax invoices using the system approved by the Tax Authority. The new system will generate invoices in XML format, enabling automatic processing by electronic systems. Business-to-business transactions will see invoices exchanged nearly instantly between sellers' and buyers' electronic systems through e-invoicing service providers, with minimal manual intervention.

Paper invoices, PDF invoices, and digital images of invoices sent via email will no longer be considered electronic tax invoices post the amendments. Approved service providers will assist businesses in preparing and integrating their systems to meet the new requirements. Ahead of the mandatory implementation, the Tax Authority has chosen 100 companies to participate in a voluntary pilot program beginning late August 2026.

The pilot aims to test the system and evaluate its preparedness. The e-invoicing initiative is part of Oman Vision 2040 and the National Digital Transformation Strategy, aligning with the country's digitalization goals.