Oman is moving towards mandatory electronic tax invoicing as part of its wider digital transformation of the tax system.
Under Decision No. 189/2026, the Executive Regulations of the Value Added Tax Law have been amended to introduce mandatory electronic tax invoicing for VAT registered businesses. Tax invoices will need to be issued, transmitted and stored electronically in accordance with the technical and security requirements specified by the Oman Tax Authority.
The transition will take place in phases, giving businesses time to understand the requirements and prepare their systems and processes.
When Will E Invoicing Apply?
The rollout begins with a voluntary pilot programme involving 100 selected companies in late August 2026.
Mandatory implementation will then take place in two phases:
- 1 April 2027: Businesses with annual supplies exceeding OMR 5 million
- 1 October 2027: Businesses with annual supplies of OMR 5 million or less
Importantly, every VAT registered business will ultimately fall within the scope of the new requirements. The OMR 5 million threshold determines when a business must comply, rather than whether it is required to comply.
More Than a Change in Invoice Format
E invoicing does not simply mean replacing a paper invoice with a PDF.
Under the approved model described in the Decision, invoices will use a structured XML format that can be automatically read and processed by systems. For B2B transactions, invoices will be exchanged between the seller’s and buyer’s systems through e invoicing service providers approved by the Tax Authority. Paper invoices, unstructured PDFs and scanned invoice images sent by email will not qualify as electronic tax invoices once the requirements apply.
For businesses, this means the transition involves more than technology alone. Finance processes, ERP and billing systems, invoice workflows, records and compliance controls will all need to work together.
What Should Businesses Do Now?
Businesses can use the period ahead of implementation to understand how invoices are currently generated, exchanged and stored, assess the changes required within ERP and billing systems, and review how tax, finance and IT processes will need to align.
Building a roadmap early also provides time for system integration, testing, training and implementation before the relevant phase goes live.
How MCA Gulf Can Help
MCA Gulf supports businesses across the e invoicing journey, from readiness assessments and process reviews to system preparation and implementation support.
Our approach brings together tax, finance, technology and process readiness to help organisations prepare for the transition in a structured manner.
For a working session, contact einvoice@mcagulf.com.
Download the Guide
Download our guide for an overview of Oman’s e invoicing requirements, implementation timeline and key readiness considerations for businesses.
