Oman Amends VAT Rules Ahead of Phased 2027 E-Invoicing Rollout

Oman has amended its Value Added Tax (VAT) regulations ahead of the nationwide rollout of mandatory electronic invoicing scheduled for 2027, according to reporting by Arabian Business. The changes follow the Oman Tax Authority's issuance of Decision No. 189/2026, which was published in Official Gazette 1660 on August 9, 2026.

Under the amended framework, mandatory e-invoicing will be implemented across two distinct phases. Taxpayers with annual supplies exceeding approximately $13 million (AED 47.8 million) must comply starting April 1, 2027. All other VAT-registered taxpayers will be required to adopt the system from October 1, 2027. KPMG highlighted that these mandatory compliance dates are embedded directly into VAT legislation rather than operating under earlier phased operational roadmaps.

Decision No. 189/2026 replaces Article 143, requiring taxpayers to issue tax invoices in an approved, secure electronic format where each invoice bears a unique identification number and maintains data integrity. The requirement applies to taxable supplies, supplies to non-taxable persons, deemed supplies, and payments received before the supply date. Invoices must be issued within 15 days of the triggering event, and Article 146 imposes the same 15-day timeline on simplified tax invoices.

Under the amendments, companies must preserve source authenticity, content integrity, and invoice readability from issuance through the statutory retention period. Additionally, Article 147 grants the Oman Tax Authority the authority to require extra data fields on invoices.

A new provision, Article 143 bis 1, establishes mandatory technical and operational requirements for electronic billing systems. Taxpayers must integrate technical protections against unauthorized access and intrusions, implement business continuity controls covering technical failures and data loss, and maintain recovery mechanisms that prevent extended system interruptions and ensure the restoration of lost information.