Decision Issued on Tax Invoices
in Electronic Format

Muscat, 9 Aug 2026 (ONA) — The
Tax Authority today issued Decision No. 189/2026 amending certain provisions of
the Regulations of the Value-Added Tax Law, which include the issuance of tax
invoices in an approved and secure electronic format that ensures their
integrity and retention.

Idris Hamoud Al Rashidi, Director
of the E-Invoicing Project at the Tax Authority, affirmed that the electronic
tax invoice project represents a qualitative leap in the development of the
Sultanate of Oman’s tax system. He stated that the project aims to enhance tax
compliance, raise the level of transparency in commercial transactions, and
improve the efficiency of tax procedures, alongside supporting digital
transformation and fostering a more efficient and reliable business
environment.

In a statement to Oman News
Agency (ONA), he explained that an electronic tax invoice is an invoice issued,
transmitted, and retained in an approved electronic format in accordance with
the technical requirements specified by the Tax Authority, thereby ensuring
data integrity, security, and verifiability.

He elaborated that the
implementation of the system contributes to reducing errors and manipulation by
issuing invoices in the approved XML electronic format—a format that enables
electronic systems to read, analyze, and process data automatically. He noted
that invoices are exchanged between the seller’s electronic system and the
buyer’s electronic system in business-to-business transactions through
e-invoicing service providers accredited by the Tax Authority, in near
real-time and without human intervention.

He added that paper invoices,
invoices issued in PDF format, or those sent as digital images via email do not
qualify as electronic tax invoices under the new requirements, and will not be recognized
following the implementation of the recent amendments to the Regulations of the
Value-Added Tax Law.

He pointed out that all companies
registered for value-added tax will be obliged to issue their tax invoices
electronically in accordance with the system approved by the Tax Authority. The
implementation will proceed in two phases: the first phase, commencing on 1
April 2027, will cover companies with annual supplies exceeding RO 5 million;
the second phase, commencing on 1 October 2027, will cover companies with
annual supplies below this threshold.

He further stated that the Tax
Authority has selected 100 companies to participate voluntarily in the pilot
phase of the project, which will launch at the end of this August, with the aim
of testing the system and assessing its readiness. He noted that a number of
participating companies have already begun early preparations for system
implementation, commending their cooperation with the Authority during the
pilot phase.

He affirmed that the project will
yield direct benefits for the end consumer by enhancing the reliability of tax
invoices and enabling consumers to verify their authenticity—thereby
reinforcing trust in commercial transactions and safeguarding consumer
rights—alongside promoting transparency between sellers and buyers.

He clarified that the electronic
tax invoice must be issued through an electronic system linked to an
e-invoicing service provider accredited by the Tax Authority, and must be
secure and verifiable, containing all the mandatory data stipulated in the
Value-Added Tax Law and its Regulations, in addition to the technical
requirements specified by the Authority. He noted that accredited service
providers offer technical support to companies to align their systems with the
approved requirements.

He stated that the e-invoicing
project represents a paradigm shift in the development of tax administration
through the digitalization of invoice issuance and exchange processes, improved
data quality, enhanced tax compliance, and data-driven decision-making based on
accurate and secure information—all of which contribute to enhancing the
efficiency of the tax system.

He added that the project is one
of the national initiatives supporting Oman Vision 2040 and the National
Digital Transformation Strategy; it contributes to the digitalization of
government procedures, enhances system integration, develops digital services,
and improves the efficiency of government service delivery using the latest
technologies, in addition to providing economic data and statistics that
support the formulation of policies and economic strategies.

— Ends/AH