Background
Oman is one of the latest representatives from the Middle East countries that has been preparing for some time now to introduce a nationwide e-invoicing reform better known as Fawtara. The reform will move from the basic concepts(traditional paper-based invoicing or scanned PDFs) to structured e-invoicing, and will imply real-time transactional reporting.
The reform is led in the first place by the Oman Tax Authority, which even has the power to issue and amend Ministerial Decrees, for a more fluent establishment of the e-invoicing framework.
The introduction of the e-invoicing reform will unquestionably come along with numerous requirements for VAT-registered businesses. Taking into account the currently drafted legislation, Oman’s digital invoicing transformation will be aligned to some level with the e-invoicing mandates that other Gulf countries have put in place.
Current Framework
The Oman Tax Authority has published Decision No. 189/2026, amending some parts of the Oman VAT Executive Regulations(Regulations), to further strengthen the preparation requirements for the adoption of the countrywide e-invoicing.
The Ministerial Decision amends the Regulations and defines new roll-out dates for e-invoicing in accordance with different categories of taxable persons. The effective date of the provisions that are part of the amendments will come into effect gradually.
The e-invoicing regime is set to be implemented in two phases in the upcoming year. The Decision also introduces a voluntary pilot programme that involves 100 firms that will participate on a voluntary basis in late August 2026.
This pilot programme will serve as an important initial point to prepare taxable persons under the framework for a mandatory shift toward e-invoicing, as well as for the tax authorities to review the technical and business processes that are part of the e-invoicing reform.
E-Invoicing Schedule
The mandatory e-invoicing regime should be gradually introduced within the following timeline:
- First Part – Starting on April 1, 2027, captures taxable persons whose annual turnover is above OMR 5 million
- Second Part: Starting on October 1, 2027, captures taxable persons whose annual turnover is below OMR 5million
Taxable Persons in Scope
According to the current legal framework, the Fawtara e-invoicing regime should put most of the VAT registered businesses in Oman under its mandate. Under the current status, this means that most of the businesses registered for VAT in Oman(even non-residents will be required to align their accounting, invoicing, and business processes with the e-invoicing and digital tax reporting mandate.