Muscat – Oman’s Tax Authority has issued a decision amending the Executive Regulations of the Value Added Tax (VAT) Law to introduce mandatory electronic tax invoicing, with implementation set to begin in April 2027.

The Tax Authority issued Decision No 189/2026 on Sunday, stipulating that tax invoices must be issued in an approved and secure electronic format that ensures the integrity, security and proper storage of invoice data.

In a statement to Oman News Agency, Idris bin Hamoud Al Rashdi, Director of the Electronic Invoicing Project at the Tax Authority, said the electronic tax invoicing project represents a major step in developing Oman’s tax system. The project aims to strengthen tax compliance, increase transparency in commercial transactions, improve the efficiency of tax procedures and support the country’s digital transformation.

Al Rashdi explained that an electronic tax invoice is an invoice issued, transmitted and stored in an electronic format approved by the Tax Authority and in accordance with specified technical requirements. The system is designed to ensure the integrity, security and verifiability of invoice data.

He said the system would help reduce errors and manipulation by requiring invoices to be issued in an approved electronic format known as XML, which enables electronic systems to automatically read, analyse and process invoice data.

In business-to-business transactions, invoices will be exchanged between the seller’s and buyer’s electronic systems through electronic invoicing service providers approved by the Tax Authority, enabling near-instantaneous exchange without manual intervention.

Al Rashdi clarified 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 VAT Executive Regulations come into effect.

He pointed out that all companies registered for VAT will eventually be required to issue electronic tax invoices through the system approved by the Tax Authority. Implementation will take place in two phases.

The first phase will begin on April 1, 2027, and cover companies with annual supplies exceeding RO5mn. The second phase will begin on October 1, 2027, and cover companies with annual supplies below RO5mn.

The Tax Authority has selected 100 companies to participate voluntarily in the pilot phase of the project, which is scheduled to begin at the end of August. The pilot phase will be used to test the system and assess its readiness ahead of the mandatory rollout.

Al Rashdi said several participating companies had already begun preparations for implementation and praised their cooperation with the Tax Authority during the pilot phase.

He said the project would also directly benefit consumers by improving the reliability of tax invoices and enabling them to verify the accuracy of invoice information. This would help strengthen trust in commercial transactions, protect consumer rights and enhance transparency between buyers and sellers.

Under the new system, electronic tax invoices must be issued through an electronic system linked to an invoicing service provider accredited by the Tax Authority. The invoices must be secure and verifiable and contain all mandatory data specified under the VAT Law and its Executive Regulations, as well as the technical requirements specified by the Tax Authority.

Accredited service providers will provide technical support to companies to help them adapt their systems and comply with the approved requirements, Al Rashdi said.

He described electronic invoicing as a major advancement in the development of tax administration, as it will digitise the processes and exchange of invoices, improve data quality, strengthen tax compliance and support decision-making based on accurate and secure data.

He added that the project is one of the national projects supporting Oman Vision 2040 and the National Digital Transformation Strategy. It contributes to digitising government procedures, enhancing integration between systems, developing digital services and improving the efficiency of government service delivery through the use of the latest technologies.

The electronic invoicing system will also generate economic data and statistics that can support the development of economic policies and strategies.