MUSCAT: Businesses in Oman that fail to adopt the mandatory Fawtara e-invoicing system once implementation begins in 2027 could face the same provisions and consequences applicable to failing to issue a valid tax invoice.

Speaking to TAS, Idris bin Mahmoud Al Rashdi, Project Manager of the Electronic Invoicing Project at the Oman Tax Authority, said an electronic tax invoice will be the only document recognised as a valid tax invoice once mandatory e-invoicing implementation begins. Regular invoices will no longer qualify as tax invoices for businesses covered by the system.

He explained that failure to issue electronic invoices would effectively mean that the business had not issued a tax invoice in accordance with the applicable requirements. Such businesses could consequently be subject to the provisions and consequences under the Executive Regulations of Oman’s Value Added Tax Law relating to failure to issue a tax invoice.

Al Rashdi said the mandatory implementation of e-invoicing is scheduled to begin in 2027, with businesses falling within the scope of the system required to comply with the new requirements.
Businesses will generally connect to the Tax Authority through approved e-invoicing service providers, rather than connecting directly to the authority.

The Tax Authority has already begun registering and approving service providers, with more than 22 companies in Oman so far registered and approved. The approved providers have been announced on the Tax Authority’s official website.

Taxpayers will select an approved provider, which will connect their accounting systems to the Tax Authority’s system and enable electronic invoices to be issued and submitted in accordance with the approved requirements.

Al Rashdi urged businesses to begin preparing well ahead of the 2027 mandatory rollout, particularly by reviewing their existing accounting systems.

“Many companies in Oman already have accounting systems that they use to issue invoices. However, some of these systems may not fully comply with the technical specifications and requirements set by the Tax Authority. Therefore, companies should start early by upgrading or modifying their internal systems to ensure they meet the specifications and data requirements for electronic invoices,” he explained.

Companies are expected to contact approved e-invoicing service providers, select the most suitable provider, and begin the contracting and system integration process.

However, he indicated that some accounting systems currently used by businesses to issue invoices may not fully comply with the Tax Authority’s technical specifications and data requirements for electronic invoices.

“One of the areas we have started focusing on is change management and improving business readiness, so that companies can begin preparing well ahead of the mandatory implementation,” he stated.

Businesses should therefore upgrade or modify their systems where necessary and ensure they can meet the required specifications.

They should also contact approved e-invoicing service providers, select a suitable provider and begin the contracting and system integration process.

Al Rashdi stressed that early preparation will give businesses time to identify and resolve technical challenges, carry out testing and make necessary adjustments before the system goes live.