MUSCAT: The requirements were introduced under Decision No. 189/2026, which amends provisions of the Executive Regulations of the Value Added Tax Law. The amendments require tax invoices to be issued in an approved and secure electronic format that ensures their integrity, security and proper storage.
Under the first phase, beginning April 1, 2027, the requirement will apply to companies with annual supplies exceeding RO 5 million. The second phase, starting October 1, 2027, will cover companies with annual supplies below that threshold.
Idris bin Hamoud Al Rashdi, Director of the Electronic Invoicing Project at the Tax Authority, said the initiative represents a major step in developing Oman’s tax system and aims to strengthen tax compliance, increase transparency in commercial transactions and improve the efficiency of tax procedures.
Al Rashdi said electronic tax invoices will be issued, transmitted and stored in an approved electronic format in accordance with technical requirements set by the Tax Authority, allowing the data to be verified and protected.
The invoices will use the XML format, enabling 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, with little or no manual intervention.
Under the new requirements, paper invoices, PDF invoices and digital images of invoices sent by email will not qualify as electronic tax invoices once the amended regulations are implemented.
The Tax Authority has selected 100 companies to voluntarily participate in the pilot phase of the electronic invoicing project, which is scheduled to begin at the end of August 2026.
The pilot will allow the authority and participating companies to test the system and assess its readiness ahead of mandatory implementation. Some participating companies have already begun preparations to integrate their systems with the new requirements.
Al Rashdi said the electronic tax invoice must be generated through an electronic system connected to an invoicing service provider approved by the Tax Authority. It must be secure, verifiable and contain all mandatory information required under the VAT Law and its executive regulations, in addition to the authority’s technical requirements.
Approved service providers will provide technical support to companies in preparing their systems for compliance.
The Tax Authority expects the system to reduce invoicing errors and manipulation while improving the quality and security of tax data. It will also allow consumers to verify the reliability of tax invoices, supporting greater transparency between buyers and sellers and strengthening consumer protection.
Al Rashdi said the project forms part of Oman’s broader Oman Vision 2040 and national digital transformation strategy, supporting the digitisation of government processes, greater integration between systems and more efficient digital services.
The electronic invoicing system is also expected to provide more accurate and secure economic data to support government decision-making and the development of economic policies and strategies.