Briefing Document & Podcast: Oman E-Invoicing & E-Reporting

SUMMARY

1. Executive Summary:

Oman is implementing a phased e-invoicing mandate, “Fawtara,” requiring VAT-registered businesses to issue, transmit, and store invoices in a structured electronic format. This is being done to enhance tax compliance through near-real-time reporting to the Oman Tax Authority (OTA). The initiative employs a “Decentralized Continuous Transaction Controls” approach, operating through a “Five-Corner Model” architecture. Full implementation, including government entities, is expected by August 2028. Non-compliance will result in significant penalties.

2. Scope and Applicability:

Transactions Covered: All VAT-liable transactions by VAT-registered businesses in Oman will be covered. This includes B2B, B2G, zero-rated exports, and exempt supplies. Import transactions are excluded (foreign suppliers without Oman VAT registration are out of scope). B2C transactions may be addressed in later phases.
Quote: “Oman’s upcoming e-invoicing mandate (the “Fawtara” program) will eventually cover all VAT-liable transactions by VAT-registered businesses.”
Taxable Persons: “All persons registered for VAT in Oman,” from large corporations to SMEs, must comply once their phase is active. Non-registered entities are exempt. Non-established companies registered for Oman VAT are included.
Quote: “The mandate applies to all persons registered for VAT in Oman, regardless of establishment status.”

3. Implementation Timeline:

Oman is phasing in e-invoicing:

Initial Plans (Postponed): Original target of voluntary pilot in April 2024 and mandatory phase in October 2024 were postponed.
Current Status (2025): Omantel partnership formed, solution partner signed (May 2025), and the first 100 businesses selected for Phase 1 (September/October 2025). Specifications drafted (November/December 2025).
Phased Rollout (2026-2028):February 2026: Developer/test portal launch.
May 2026: Registration and accreditation of e-invoicing service providers.
August 2026: First live phase (top ~100 companies).
Early 2027 (Phase 2): Remaining large taxpayers.
Mid/Late 2027 (Phase 3): All other VAT-registered businesses (SMEs).
August 2028 (Phase 4): Government entities (B2G).
Quote: “According to the OTA’s current plan, all VAT invoices in Oman should be electronic by the end of August 2028.”

4. E-Invoice Format and Content:

Format: Structured electronic format (not PDF or paper). Conformance with international standards is expected – a Peppol-based UBL schema (Universal Business Language XML). XML or JSON data files.
Quote: “Oman’s e-invoices must be issued in a structured electronic format that allows automated processing, rather than PDF or paper.”
Content: Mandatory details including seller and buyer identification, invoice date and number, line item details, taxable amount, VAT rate and amount, total VAT, and total gross amount. Digital elements like a unique invoice identifier, a digital signature/certification, and potentially a QR code are likely.

5. E-Reporting and Data Transmission Process:

Approach: “Decentralized Continuous Transaction Controls” – near-real-time reporting.
Quote: “Oman is adopting a “Decentralized Continuous Transaction Controls” approach – essentially a near-real-time reporting of invoice data to the tax authority as invoices are issued.”

Five-Corner Model:Supplier generates the invoice and sends it to an OTA-accredited Service Provider (ASP). Invoices produced directly from accounting/ERP software, no manual entry portals.
Supplier’s ASP performs initial checks and forwards the invoice to the OTA’s “Fawtara” platform.
OTA’s Fawtara system validates the invoice and returns a confirmation to the supplier’s ASP. Invoice data passed to the buyer’s service provider.
Buyer’s Service Provider delivers the invoice to the buyer.
Buyer.

Deadlines & Frequency: Data submission is effectively on invoice issuance. No separate periodic e-reporting form. Real-time reporting (seconds/minutes).

6. Penalties for Non-Compliance:

Strict penalties for failing to comply with e-invoicing requirements.
Quote: “Oman has put in place strict penalties for failing to comply with the e-invoicing requirements.”
Fines ranging from OMR 500 up to OMR 5,000 for non-compliance, such as not issuing invoices in the mandated electronic format.

7. Archiving and Retention Requirements:

All e-invoices must be stored and archived in a secure digital form for 10 years from the end of the year in which they were created.
Quote: “Oman’s VAT regulations generally require records (including invoices) to be kept for 10 years from the end of the year in which they were created, and the same rule applies to electronic invoices.”
Taxpayers must ensure the integrity and readability of invoices for that period.

8. Pre-Filled VAT Returns:

Oman does not currently offer pre-populated VAT returns based on e-invoice data.

9. Official Resources:

Omani Tax Authority e-invoicing portal (taxoman.gov.om)
Ministerial Decision 456/2022
Future specification documents and standards for providers to be released by the OTA.

INDEPTH ANALYSIS

Scope of Transactions Covered:

Oman’s upcoming e-invoicing mandate (the “Fawtara” program) will eventually cover all VAT-liable transactions by VAT-registered businesses. This includes standard domestic sales of goods and services, business-to-business (B2B) and later business-to-government (B2G) supplies.
Zero-rated exports and exempt supplies must still be invoiced electronically (with 0% VAT or appropriate codes).
However, import transactions (purchases from foreign suppliers not registered in Oman) are outside the mandate – in such cases, the foreign supplier is not required to issue an Omani e-invoice and the Omani buyer simply accounts for VAT via reverse-charge, as usual.
In the initial rollout, consumer sales (B2C) aren’t the primary focus; retail cash sales may continue using existing POS receipts, with their summary values reported in the VAT return rather than individual real-time e-invoices. Eventually, as the system matures, most or all invoicing – whether B2B, B2C, or B2G – is expected to shift onto the electronic platform for full coverage. [cleartax.com] [deloitte.com], [cleartax.com]

Taxable Persons in Scope:

The mandate applies to all persons registered for VAT in Oman, regardless of establishment status. In other words, all Oman VAT-registered businesses – from large corporations to SMEs – must comply once their phase is active. There are no categorical exemptions for certain sectors or sizes in the final stage; even small businesses above the VAT registration threshold (OMR 38,500 annual turnover) will be included by the last phase. Non-registered entities (including micro businesses below the VAT threshold and certain government bodies acting outside the scope of VAT) are not required to use e-invoicing. Notably, non-established companies that are registered for Oman VAT (e.g. via a local fiscal representative) fall under the same rules as local taxpayers. Only foreign suppliers with no Oman VAT registration are out of scope, as mentioned above. In sum, if you are obliged to charge Omani VAT, you will be obliged to issue electronic tax invoices under Fawtara. [cleartax.com] [deloitte.com], [deloitte.com] [blog.symtrax.com]

Implementation Timeline (Past, Current, Future):

Oman is phasing in e-invoicing over several years, with an initial pilot for top taxpayers and full mandate by 2028. Key milestones include: [pwc.com], [fintedu.com]

Legal Basis (2022): Oman amended its VAT Executive Regulations via Ministerial Decision No. 456/2022 (effective 17 Oct 2022) to recognize electronic tax invoices and authorize future mandates. This established the definition of e-invoices (structured electronic format) and introduced penalties for failing to issue them. Following this, the Oman Tax Authority (OTA) signaled that e-invoicing would eventually become compulsory for all VAT registrants after an initial voluntary period. [kpmg.com] [deloitte.com]
Initial Plans (2024 – Postponed): The OTA initially aimed for a voluntary pilot launch in April 2024 and a first mandatory phase by Oct 2024 for large companies. However, these 2024 target dates were officially postponed. By early 2025, the timeline was adjusted to start in 2025–26 (due to the scope of technical preparations and alignment with global best practices). [gspuoman.com] [gspuoman.com], [gspuoman.com]
Current Status (2025): In mid-2025, the OTA formally partnered with Omantel to develop the national e-invoicing platform and commenced groundwork. On 12 May 2025, the OTA signed an implementation agreement with a solution partner, confirming a phased rollout from 2026. By September–October 2025, the OTA selected the first 100 businesses (based on size, volume, sector, readiness, etc.) for Phase 1 and invited them to an e-invoicing readiness survey. Specifications and standards were drafted: in November 2025 the OTA planned to publish technical e-invoice specifications, and by December 2025 to issue standards for service providers and hold industry workshops. This is the “pilot preparation” stage. [blog.symtrax.com] [kpmg.com], [kpmg.com] [pwc.com], [fintedu.com]
Phased Rollout (2026–2028): February 2026 will see a launch of a developer/test portal for certified solution providers. May 2026 is slated for opening the registration and accreditation of e-invoicing service providers (the private IT firms through whom invoices will be routed). The first live phase goes active by August 2026, when the selected top ~100 companies must start issuing only electronic invoices via the Fawtara system. Subsequent phases will broaden the mandate roughly every 6 months: by early 2027 (Phase 2) to cover remaining large taxpayers above certain turnover thresholds; by mid/late 2027 (Phase 3) to include all other VAT-registered businesses, down to SMEs. Finally, Phase 4 in August 2028 will extend the requirement to government entities (B2G), meaning public sector bodies must both issue and accept only electronic invoices for their transactions. According to the OTA’s current plan, all VAT invoices in Oman should be electronic by the end of August 2028. [pwc.com], [fintedu.com] [cleartax.com], [cleartax.com] [pwc.com], [cleartax.com]

(Note: The phased timing above is based on latest announcements. Earlier voluntary trials in 2025 or interim steps may occur, but the first mandatory compliance wave starts August 2026. The OTA is actively communicating updates, so businesses should monitor for any adjustments to these timelines.)

E-Invoice Format and Content: Oman’s e-invoices must be issued in a structured electronic format that allows automated processing, rather than PDF or paper. The OTA has indicated conformance with international standards – specifically a Peppol-based UBL schema (Universal Business Language XML) – for consistency and interoperability. In practice, this means invoices will be generated as XML or JSON data files following the OTA’s schema definitions. Each invoice file must contain all details required by Oman’s VAT law and any additional fields mandated by OTA. Mandatory content includes at least: seller and buyer identification (names, addresses, VAT registration numbers), invoice date and number, line item details (description, quantity, unit price), the taxable amount per line, VAT rate and amount per line, total VAT, and total gross amount payable. Invoices for zero-rated or exempt sales should specify the applicable VAT treatment (e.g. 0% or “exempt”) and reason codes if required. The OTA may also require certain digital elements on each e-invoice for authenticity – for example, a unique invoice identifier, a digital signature or certification from the service provider, and possibly a QR code to allow quick verification. (These security features have precedence in other Gulf e-invoicing systems, and Oman’s specs are expected to be similar.) In summary, an Omani e-invoice will be an .XML (or JSON) document meeting the OTA’s data dictionary, ensuring it contains all information a paper tax invoice would require (per the VAT Executive Regulations) plus technical signatures or codes to verify it has been validated. [deloitte.com], [gspuoman.com] [pwc.com], [pwc.com] [blog.symtrax.com], [blog.symtrax.com] [cleartax.com], [cleartax.com] [cleartax.com] [pwc.com], [cleartax.com]

E-Reporting and Data Transmission Process:

Oman is adopting a “Decentralized Continuous Transaction Controls” approach – essentially a near-real-time reporting of invoice data to the tax authority as invoices are issued. Rather than taxpayers periodically uploading invoice lists, the system will transmit each invoice through accredited intermediaries moment-by-moment. This is implemented via a Five-Corner Model architecture, which works as follows: [pwc.com], [fintedu.com] [kpmg.com], [kpmg.com]

The supplier (seller) generates the invoice in their own system in the required electronic format and sends it to an OTA-accredited Service Provider (ASP) – this can be the supplier’s chosen e-invoicing platform or software integrated directly with their ERP. (Notably, Oman requires that e-invoices be produced straight from the accounting/ERP software – no manual entry portals – to ensure accuracy and integration.) [blog.symtrax.com], [blog.symtrax.com]
The supplier’s service provider receives the invoice data and performs initial checks (format validity, schema completeness, etc.). The ASP then forwards the invoice to the Oman Tax Authority’s central “Fawtara” platform for validation. [blog.symtrax.com]
The OTA’s Fawtara system (central hub) runs automated validation rules on the invoice (e.g. verifying the VAT identification numbers, checking calculations, ensuring no required fields are missing). Once validated, the system generates an acknowledgment. In the five-corner flow, the OTA (Corner 3) returns a confirmation to the supplier’s ASP that the invoice is successfully received/recorded. At essentially the same time, the invoice data is passed on to the buyer’s service provider (if the buyer also uses an accredited provider). [blog.symtrax.com] [blog.symtrax.com], [blog.symtrax.com]
The buyer’s Service Provider delivers the invoice to the buyer in a suitable format (for example, importing it into the buyer’s ERP or providing a readable PDF copy alongside the data). The buyer’s ASP also typically sends an acknowledgment back up the chain to confirm the buyer received the e-invoice. [blog.symtrax.com], [blog.symtrax.com] [blog.symtrax.com]
Throughout this process, OTA receives the invoice details essentially in real-time, as part of the same workflow. There is no separate monthly or quarterly report of invoices needed for those invoices sent through Fawtara – each e-invoice is automatically “reported” to the tax authority at the time of issuance. (This continuous reporting ensures the OTA has up-to-date transaction data for audit and compliance purposes.) [cleartax.com], [cleartax.com] [kpmg.com], [kpmg.com]

For B2B and B2G invoices, the expectation is that every invoice will go through this live clearance/exchange process once the mandate applies. For B2C invoices, as noted, Oman may not require individual real-time transmission in early phases. Instead, retailers could issue simplified e-invoices or receipts and later provide aggregated data. The OTA has not yet announced a distinct “e-reporting” system for such B2C summary data; most likely, B2C sales will continue to be reported via the periodic VAT returns (until perhaps a future phase addresses them more directly). Importantly, if a transaction does require an e-invoice, it must be channeled through an accredited provider at the time of supply – there isn’t an option to issue an invoice first and upload it days later. Oman’s model thereby ensures immediate or near-immediate reporting. In short, the data submission deadline is effectively on invoice issuance: invoices are to be live-validated and sent to OTA in real-time (concurrent with being delivered to the customer). This mirrors other continuous transaction control regimes and means compliance is embedded into the invoicing process itself. [cleartax.com] [cleartax.com], [cleartax.com]

Deadlines & Frequency for Data Transmission:

As described, standard tax invoices will be transmitted instantly as part of issuance. There is no separate periodic e-reporting form for those invoices – the OTA receives each invoice’s data in real time. Therefore, the concept of “X days after invoice issuance” for reporting doesn’t apply to normal B2B/B2G invoices; they are reported essentially immediately (within seconds or minutes) once generated. (For comparison, Oman is not using a deferred reporting system like Spain’s SII, but a live exchange via certified platforms.) Only in cases where an invoice isn’t required to go through Fawtara (such as a small cash sale) would the business just include that sale in its usual VAT return submission (due by the end of the month following the tax period). But there is currently no indication of a special separate e-reporting portal or short-term reporting deadline besides the VAT return for those transactions. Once fully rolled out, even many B2C transactions might be expected to be e-invoiced (or at least electronically reported), but specifics on that will come in later phases. As of now, Oman’s focus is on real-time invoice clearance for in-scope transactions, rather than after-the-fact reporting windows. [cleartax.com] [cleartax.com], [cleartax.com] [pwc.com]

Penalties for Non-Compliance:

Oman has put in place strict penalties for failing to comply with the e-invoicing requirements. Under the amended VAT Executive Regulations, not issuing a required electronic tax invoice (or not submitting it through the system) is treated as a violation subject to fines. Specifically, Article 202 of the Executive Regulations was revised to authorize an administrative penalty ranging from OMR 500 up to OMR 5,000 for non-compliance. This fine range applies to failures such as not issuing an invoice in the mandated electronic format or not following the OTA’s procedures for e-invoicing. In fact, the penalty for not issuing an e-invoice is equivalent to the penalty for not issuing any tax invoice within the required time – both are considered serious offenses. Oman’s Tax Authority has indicated that failure to issue an electronic invoice when required will be penalized in the same way as failing to issue a valid tax invoice at all. (By comparison, the general VAT law in Oman already penalizes late or missing invoices, as Deloitte noted: not issuing a proper invoice within 15 days of supply can trigger a fine of OMR 500–5,000. The e-invoicing mandate effectively brings electronic non-compliance into that same penalty regime.) In short, companies that do not adhere to the e-invoicing rules once in force – for example, issuing paper invoices or bypassing the accredited system – can expect significant fines. Businesses should also anticipate that consistent non-compliance could invite audits or further enforcement actions by OTA. There is no grace period explicitly announced for penalties after go-live; however, given the phased approach, companies are expected to be ready by their assigned phase to avoid these fines. [deloitte.com], [gspuoman.com] [gspuoman.com] [deloitte.com] [pwc.com], [pwc.com]

Archiving and Retention Requirements:

All e-invoices must be stored and archived in a secure digital form for future reference and tax audit purposes. Oman’s VAT regulations generally require records (including invoices) to be kept for 10 years from the end of the year in which they were created, and the same rule applies to electronic invoices. The Fawtara framework mandates that businesses ensure secure storage for at least 10 years for each electronic invoice. This means taxpayers must implement an archiving solution (which could be part of the service provider’s offering or an in-house system) that preserves the integrity and readability of the invoices for a decade. The electronic archive should maintain the original format of the e-invoice (e.g. XML/UBL data), along with any security signatures or QR codes attached, and allow retrieval of invoices in human-readable form on request. OTA will expect that during audits or inspections, businesses can produce any invoice from the past 10 years with its details intact. Moreover, as part of accreditation, service providers may be required to facilitate this retention — but ultimately the obligation lies with the taxpayer to keep their e-invoice records accessible and unaltered for the full retention period. In sum, companies should plan for long-term electronic archiving either in their own systems or by contract with their provider, mirroring the 10-year record-keeping rule in Oman’s VAT law. (Note: 10 years is notably stricter than some jurisdictions; it underscores that e-invoices are considered part of the official books and records that must be preserved for a lengthy period.) [blog.symtrax.com], [cleartax.com] [blog.symtrax.com] [cleartax.com], [cleartax.com]

Pre-Filled VAT Returns:

Oman does not currently offer pre-populated VAT returns based on e-invoice data. All VAT-registered businesses must continue to file periodic VAT returns with the required figures (sales, purchases, tax due, etc.) manually compiled from their records. The introduction of e-invoicing will give OTA more real-time data, but there is no announcement that Oman will auto-generate or pre-fill taxpayers’ VAT returns using that data, and no such functionality exists at present. Taxpayers will still need to compile their outputs and inputs for the VAT return filing (typically quarterly) and submit them by the standard deadlines (e.g. within one month after quarter-end) in the normal way. In the long run, Oman’s e-invoicing could enable the tax authority to cross-check declarations or potentially ease certain compliance processes, but as of now there is no pre-filled or “draft return” system in place. Each business remains responsible for preparing and filing accurate VAT returns. Notably, some countries with mature e-invoicing have started using invoice data to pre-fill tax returns, but Oman’s project is still in its rollout phase and focused on invoice compliance rather than replacing the return filing process. The VAT return process in Oman remains unchanged for the time being, aside from the expectation that with complete e-invoice adoption, the data reported on returns should closely match the transactional data that OTA receives through Fawtara (facilitating easier audits). In summary, no pre-populated VAT returns are provided by the OTA, so businesses must lodge their VAT returns as before – now with the support of more reliable e-invoice records, but without the returns being auto-prepared by the authority. [deloitte.com], [cleartax.com]

References and Official Links:

The Omani Tax Authority has a dedicated e-invoicing portal (taxoman.gov.om) which provides an overview of the Fawtara system and FAQs. The legal framework was set out in Ministerial Decision 456/2022, published in the Official Gazette on 16 Oct 2022 (amending the Executive Regulations of the VAT Law to accommodate e-invoices and related penalties). For further details, OTA’s announcements and guidance (once released) will be key – for example, the planned specification documents (Nov 2025) and standards for providers (Dec 2025) are expected to be published on the OTA’s website. Taxpayers and practitioners also refer to analyses by professional services firms: for instance, PwC Oman’s Tax Alert on October 2025 outlined the first-phase criteria and timeline, and KPMG Oman’s Tax Flash (May 2025) confirmed the phased approach and the legal basis for e-invoicing. These and other external newsletters (Deloitte, EY, etc.) provide commentary, but ultimately the OTA’s official releases and the text of the VAT Executive Regulations (as amended) are the authoritative sources. Businesses should keep an eye on the OTA portal for the upcoming detailed technical documentation and integration guidelines, which will clarify any remaining questions about data fields, API specifications, and compliance procedures. The move to e-invoicing in Oman is a significant change, and leveraging these official resources will help ensure compliance with the scope, timelines, and requirements summarized above. [kpmg.com], [kpmg.com] [deloitte.com] [fintedu.com], [fintedu.com] [pwc.com], [pwc.com]

See also

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Briefing Document & Podcast: Oman E-Invoicing & E-Reporting

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