All About e-Invoicing in Oman

The Sultanate of Oman Tax Authority(OTA) initially planned to introduce e-invoicing in 2024, following the lead of other GCC countries like Saudi Arabia (KSA), UAE and Bahrain. However, it appears that this plan has been unofficially postponed to 2025, as the OTA has yet to release any details, rules, or clarifications.

While the OTA has not officially announced the model, process, or technical specifications for the e-invoicing implementation, it has issued a tender for the design, implementation, management, and support of the Integrated E-invoice Platform (IEP). This tender provides significant insights into the upcoming e-invoicing system in Oman.

This blog with explain about the e-invoicing compliance, model predicted implementation timeline, scope, process and in detail.

What is e-Invoicing in Oman?

Oman’s Tax Authority has defined electronic tax invoices in Decision No. 456 of 2022, issued to amend the Value Added Tax (VAT) Executive Regulations. An electronic tax invoice is described as a tax invoice generated in a structured format through electronic means, containing at least the details specified in the VAT Executive Regulations.

According to the released tender, Oman is adopting a 5-corner model for e-invoicing. In this model, all digitized e-invoices are validated, stored, and overseen by the Oman Tax Authority (OTA) through a middleware system that connects buyers, suppliers, and the OTA.

e-Invoicing in Oman: Timeline

While the Oman Tax Authority (OTA) has not officially announced a specific timeline for e-invoicing implementation the tender details do mention the time periods and phases of rollouts

The e-invoicing tender was announced in August 2024, with finalization expected by November 2024. From December 2024 to November 2025, the project will focus on gathering requirements, completing the design phase, finalizing the solution architecture, and conducting development and testing.

Here are the e-invoicing in Oman Expected Deadlines

Note

• Implementation will occur in phases based on turnover and transaction types..
• Criteria for identifying large companies and SMEs are yet to be defined.
• These are just expected timelines.

Scope of e-Invoicing in Oman

Oman is implementing e-invoicing for all VAT-registered businesses, with a phased rollout based on business size. The system will cover all transaction types, including:

• B2B (Business-to-Business): Standardized invoices between businesses.
• B2G (Business-to-Government): E-invoices for business transactions with government entities.
• G2B (Government-to-Business): Invoices from government entities to businesses.
• B2C (Business-to-Consumer): E-invoices for consumer transactions, particularly for simplified invoices.

e-Invoicing Compliance Requirement

Here are the compliance requirements as indicated in the IEP Development tender:

1. Registration of E-Invoice Generating Solutions (EGS): All VAT-registered businesses must register with an EGS provider to use the e-invoice system. These systems should be able to integrate directly with the OTA e-invoicing platform.
2. Service Provider Onboarding: Businesses must use approved service providers to send and receive e-invoices. These providers must meet specific criteria set by the OTA to be authorized for this purpose.
3. Issuance and Exchange of E-Invoices:
4. Invoice Validation and Clearance:

e-Invoicing Model in Oman

Oman is transitioning to an e-invoicing model, based on the PEPPOL 5-corner framework, aims to standardize and automate the invoicing process.

The e-invoicing model will have the following 

1. Standardized Invoices: Invoices will follow a standardized format to ensure compliance with OTA regulations.
2. Access Points and Service Providers: Invoices will be sent through access points or service providers who validate and approve them as predefined guidelines.
3. Validation and Approval: Service providers will check invoices for compliance before sending them to the OTA.
4. Data Sharing with OTA: Approved invoices will be shared with the OTA to enhance monitoring and compliance.

Vendors will validate and finalize this model during the design phase to address technology and compliance needs. This transition aims to streamline processes, reduce errors, and improve compliance.

Preparing for e-Invoicing in Oman

As Oman adopts its e-invoicing system, businesses should focus on these key steps:

1. Understand Requirements: Review the PEPPOL 5-corner model and OTA’s compliance specifications for e-invoices.
2. Onboard E-Invoice Generating Solutions (EGS): Register a compliant EGS that integrates with your existing systems.
3. Engage Service Providers: Select and formalize agreements with service providers for invoice validation and exchange.
4. Update Internal Processes: Ensure your system generates and sends e-invoices in the required format. Train staff on the new process.
5. Validate and Clear Invoices: Implement processes for invoice validation and error handling. 
6. Monitor and Review: Use the OTA portal to manage and review invoices. Conduct regular compliance audits. 
7. Prepare for VAT Returns: Automate VAT return pre-filling based on e-invoice data. Utilize reporting tools for VAT tracking.

e-Invoicing in Other Countries

e-Invoicing in Saudi Arabia

e-Invoicing in UAE

e-Invoicing in Malaysia

e-Invoicing in Singapore

e-Invoicing in France

e-Invoicing in Spain

e-Invoicing in Bahrain