Oman e-invoicing phases and penalties
The two phases
Decision 189/2026 sets two start dates for taxable persons, that is, businesses registered for VAT in Oman [1]:
| Phase | From | Who |
|---|---|---|
| 1 | 1 April 2027 | Annual supplies above OMR 5 million |
| 2 | 1 October 2027 | Annual supplies of OMR 5 million or less |
Before that, about 100 companies chosen by the Oman Tax Authority (OTA) take part in a voluntary pilot that started at the end of August 2026 [2]. Other businesses may start early with their provider.
Which twelve months count? The decision speaks of "annual supplies" without defining the period [1]. Until the OTA says more, check your last twelve months of VAT returns and your current year. If you are close to the line, plan for 1 April 2027.
No separate appointment deadline. Unlike the UAE, Oman sets no date for choosing a provider. You must be connected and integrated with your provider by your go-live date [3].
What changed from the old plan
The OTA's earlier material described four phases: a pilot, then more large companies, then SMEs, then everyone [3][5]. Its FAQ, last updated on 30 June 2026, still says the first rollout is in August 2026 and later ones "will follow according to the timeline that will be prescribed in the legislation" [3]. Decision 189/2026 is that legislation: it replaces the plan with two dates [1]. Older advisory articles that give February or August 2027 are out of date.
Who is not covered
- Businesses not registered for VAT. They are not required to join the Fawtara network [3].
- Businesses with a written exemption. The OTA Chairman can exempt a taxable person for a set period, on a reasoned request with documents, if it files its returns and pays its VAT on time [1].
- No industry exceptions. The OTA says no sector is excluded [3].
Whether exempt supplies need an e-invoice is not settled: the FAQ only says to "refer to applicable laws" [3].
Penalties
The OTA has not published a penalty table for e-invoicing. Its FAQ says "penalties will apply according to regulations" [3]. The VAT Law allows the regulations to set administrative fines [4], but none specific to e-invoicing had been published by 9 October 2026.
What already applies is the VAT Law's criminal provision. Intentionally failing to issue a tax invoice that must be issued is punishable by [4]:
- a fine of OMR 1,000 to 10,000, and/or
- prison of two months to one year.
A repeat offence can double the fine. A case can only be brought at the Chairman's request, and he may settle it for a payment [4]. From your go-live date, an invoice that is not issued in the approved electronic format does not meet the new rule [1][2].
What to do now
- Work out your phase. See the deadline checker.
- Pick a provider from the list of accredited providers.
- Leave time for testing: the OTA contacts businesses in a rollout at least six months before their onboarding [3].
Information, not legal or tax advice. The official texts are in Arabic; translations are ours. Checked on 9 October 2026.
Sources
- Tax Authority Decision 189/2026 amending the VAT Executive Regulations, Official Gazette no. 1660 of 9 Aug 2026 (Arabic text on Qanoon.om) (checked on )
- Oman News Agency, 9 Aug 2026: decision on issuing tax invoices in electronic form (Arabic) (checked on )
- Oman Tax Authority: Fawtara (e-invoicing) FAQ, last updated 30 Jun 2026 (PDF) (checked on )
- VAT Law, Royal Decree 121/2020, art. 100, 102 and 103 (Arabic text on Qanoon.om) (checked on )
- Oman Tax Authority: introduction to e-invoicing (checked on )
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