e-Invoicing in Oman: Requirements, Implementation Timeline, Scope, Framework and Process

Oman’s e-invoicing initiative, led by the Oman Tax Authority (OTA) under the Fawtara program, aims to digitize invoicing for VAT-registered businesses. The system ensures structured, real-time invoice validation, enhancing tax compliance, transparency, and operational efficiency across the economy.

Key Takeaways

• The Fawtara platform, developed with Omantel, will enable structured e-invoices in XML/JSON formats for B2B and later B2G transactions.
• Phased rollout runs from 2025–2028, starting with top taxpayers, expanding to all VAT-registered entities, and finally government bodies.
• E-invoices must include VATINs, transaction data, and digital authentication, and be stored securely for 10 years.
• All invoices must pass through OTA-accredited providers or compliant internal systems for real-time validation.
• SMEs and small VAT-registered firms must comply by Phase 3 (2027), with no permanent exemptions.

What is e-Invoicing in Oman?

E-invoicing in Oman is a government-led initiative introduced by the Oman Tax Authority (OTA) to digitize the way businesses issue and exchange invoices. Under this system, known as the Fawtara program, all VAT-registered businesses will be required to generate and send invoices in a structured electronic format instead of traditional paper or PDF forms.

An e-invoice is created through accounting or ERP software and transmitted electronically using standardized formats like XML or JSON. This enables automatic validation, real-time sharing between trading partners, and direct reporting to the tax authority.

The goal of e-invoicing in Oman is to improve tax compliance, reduce invoice-related fraud, and streamline the invoicing process for businesses. It will be rolled out in phases starting in 2026, eventually becoming mandatory for all VAT-registered entities and government transactions.

Implementation Timeline

Oman’s e-invoicing rollout follows a phased timeline from 2025 to 2028, allowing businesses to transition gradually based on their size and transaction types. The process begins with technical preparations and pilot testing, followed by staged go-lives for different taxpayer categories.

Oman e-Invoicing Requirement

Businesses in Oman must comply with a set of e-invoicing requirements mandated by the Oman Tax Authority (OTA) as follows

• All VAT-registered businesses must issue tax invoices in a structured electronic format as defined by the OTA.
• Invoices must be generated digitally and transmitted via an OTA-accredited service provider.
• E-Invoices must include mandatory details like VATIN, invoice number, date, VAT amount, and total payable.
• Use only OTA-accredited service providers or compliant in-house systems to send e-invoices.
• Ensure e-invoices are transmitted in real-time at the time of supply or transaction.
• Securely archive all e-invoices digitally for at least 10 years for audit and verification.

Scope of E-Invoicing in Oman

The Omani e-invoicing mandate will eventually apply to all VAT-registered businesses, rolled out in phases. 

The Oman’s e-Invoice mandate covers 

• All VAT-registered businesses in Oman are within the scope.
• Applies to business-to-business (B2B) transactions.
• Includes business-to-government (B2G) transactions in later phases.

Excluded (or Not Yet Prioritized):

• Consumer-facing (B2C) transactions are not the initial focus; simplified invoices or cash receipts may remain acceptable for now.
• Very small businesses may be indirectly excluded early on, but no formal exemptions have been announced.

E-Invoicing Process

Oman’s e-invoicing follows a structured digital workflow under the “five-corner” model, with real time exchange and validation of invoices between businesses and the Oman Tax Authority. Here is the process

1. Invoice Generation: The supplier generates the invoice in a structured electronic format (such as XML or JSON) as per OTA standards.
2. Transmission via Accredited Provider: The e-invoice is sent to an OTA-accredited service provider (ASP) for processing. Businesses must use a certified provider or an approved in-house system.
3. Validation and Authentication: The service provider validates the invoice against OTA's technical and VAT rules and may apply a digital signature or security stamp.
4. Delivery to Buyer: The validated e-invoice is delivered electronically to the buyer through their accredited provider or direct system connection.
5. Data Sharing with OTA: The invoice data is automatically shared with the Oman Tax Authority (OTA) in real time or near real time for compliance and audit purposes.
6. Acknowledgment and Archiving: Both parties receive acknowledgment. The invoice is stored electronically by the business and/or provider for future reference (minimum 10 years as per VAT law).

Model, Format and Technical Specifications

Oman’s e-invoicing framework follows a five-corner model, where invoices are exchanged through OTA-accredited service providers under the supervision of the Oman Tax Authority (OTA). This decentralized model ensures real-time validation, interoperability, and security without relying on a single central portal.

• Structure: E-invoices must be issued in a machine-readable format, likely XML or JSON, based on international standards such as UBL (Universal Business Language) and PEPPOL BIS 3.0.
• Content: Each e-invoice will include mandatory data: buyer and seller details, VATINs, line items, VAT rate and amount, and timestamps organized in a standardized schema for automatic validation.
• Security: Invoices are expected to carry digital signatures, unique identifiers, and QR codes to ensure authenticity.

Exemptions and Special Cases

As of now, Oman’s e-invoicing mandate has no permanent exemptions for specific industries or company sizes. All VAT-registered taxpayers are expected to comply, though smaller businesses will join in later phases.

• Small Businesses: No turnover threshold has been announced. SMEs registered for VAT must adopt e-invoicing by Phase 3 (mid-2027).
• B2C Transactions: E-invoicing currently focuses on B2B and B2G. Retail and cash sales may remain outside real-time reporting. Businesses could continue using POS systems and report B2C sales in summary. 
• Exempt and Zero-Rated Supplies: Invoices for exempt (e.g., financial services, residential rent) and zero-rated supplies (e.g., exports) must still be issued electronically, showing 0% VAT or exemption codes as required.
• Non-Resident Suppliers: Foreign suppliers not registered in Oman are outside the mandate. Omani buyers will self-account for VAT under reverse charge rules; no special e-invoice is required.

How Should Omani Businesses Prepare for E-Invoicing

Before adopting e-invoicing, Omani businesses should start preparing early to ensure a smooth transition and full compliance with the Oman Tax Authority’s upcoming Fawtara system.

1. Review Current Systems: Check if your invoicing or ERP software supports structured formats like XML or UBL. Plan necessary upgrades or integrations to meet OTA requirements.
2. Stay Updated with OTA: Follow the Oman Tax Authority website (taxoman.gov.om) for technical specs, accredited provider lists, and training sessions.
3. Choose a Certified Provider: Select an OTA-accredited service provider that integrates with your accounting system and supports digital signing, validation, and secure storage.
4. Train Staff and Update Processes: Train finance and IT teams on new workflows for issuing, correcting, and archiving e-invoices. Set clear procedures for handling errors or downtime.
5. Ensure Data Accuracy: Verify VAT numbers, contact details, and VAT rates in your records. Clean data helps avoid invoice rejection in the new system.
6. Plan Secure Archiving: Store e-invoices safely for at least 10 years, using either internal or provider-managed digital archives that preserve invoice integrity.
7. Consult Advisors: Get guidance from tax and legal experts on compliance, exemptions, and potential penalties to ensure full readiness.
8. Embrace Digital Transformation: Use e-invoicing to automate billing, improve accuracy, and streamline financial operations across your business.

How ClearTax Supports E-Invoicing Compliance in Oman

ClearTax’s e-invoicing solution is engineered to meet the data, format and transmission requirements anticipated for Oman’s e-invoice framework. Here is how ClearTax’s e-Invoicing Solution can support your business

• Seamless Integration with ERP / POS Systems: ClearTax integrates smoothly with any existing invoicing, billing, ERP or POS system minimising disruption to current workflows. ClearTax
• Automated Data Validation: The platform executes multiple checks (150+ smart validations) to ensure invoice data is accurate, complete, and aligned to government compliance rules, reducing the risk of rejection or penalty. 
• Secure Cloud Archiving: ClearTax stores e-invoices securely and in compliant formats, ready for audit or regulatory review, helping businesses meet long-term storage requirements. 
• Scalability & Reliability: With high system availability and capability to handle large volumes of invoices, ClearTax is positioned to support businesses as they scale their e-invoicing operations in Oman. 
• Regional Localisation: The solution is tailored for Gulf-region compliance and data-residency norms (including Oman), making it suitable for businesses operating in the GCC. 
• Expert Support & Advisory: ClearTax provides advisory and implementation support which helps management and finance teams understand the regulatory changes and transition smoothly. 

Conclusion

As Oman prepares for full-scale e-invoicing under the Fawtara program, businesses are poised for a major digital transformation. Beyond compliance, this shift will redefine how companies manage cash flow, reporting, and tax visibility. Automated data exchange and real-time validation are expected to reduce VAT fraud, boost operational efficiency, and improve government oversight of economic activity. For businesses, e-invoicing is not just a regulatory upgrade; it’s an opportunity to streamline accounting, enhance accuracy, and align with international digital trade standards. The transition will also drive greater system integration, data transparency, and trust in Oman’s growing digital economy.

Oman E-Invoicing: Important Government Resources