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New E‑Invoicing Requirements in Oman: Who Is Affected?
Table of Contents
What Is E-Invoicing—and Why It Matters in Oman
Implementation Timeline (2026–2028)
Who Must Comply—and When
What Businesses Need to Prepare
Key Phased Rollout and Compliance Triggers
Benefits of E-Invoicing: What’s in It for You
Risks of Non-Compliance
Business Readiness: Key Action Steps
Practical Scenarios: What Applies to You
Key Challenges Others Have Noted
Plain-Text Summary
Frequently Asked Questions (FAQs)
What Is E‑Invoicing—and Why It Matters in Oman
E-invoicing replaces traditional VAT invoices with structured, machine-readable electronic invoices, validated and exchanged through certified platforms. Unlike PDFs or scanned versions, these invoices follow standardized formats and integrate seamlessly with the Oman Tax Authority (OTA)’s systems. The goal: boost VAT compliance, reduce fraud, and align with global e-tax standards.
Implementation Timeline (2026–2028)
Oman will roll out e-invoicing in phases:
Pilot / voluntary: Q1 2026 (approx. 100 large taxpayers)
Large taxpayers mandatory: from Q3 2026
All VAT-registered businesses (B2B, B2C, B2G): from Q1 2027
Government-to-Business (G2B) inclusion: from Q1 2028
This gradual model aligns with the PEPPOL 5-corner structure, involving suppliers, buyers, service providers, and the OTA platform.
Who Must Comply—and When
| Business Category | Phase | Status |
|---|---|---|
| Top 100 Large Taxpayers | Q1 2026 (voluntary) | Pilot group |
| All Large Taxpayers | Q3 2026 | Mandatory |
| VAT-Registered SMEs | Q1 2027 | Mandatory |
| B2G & G2B Transactions | Q1 2027 – Q1 2028 | Scheduled rollout |
Anyone requiring VAT registration—regardless of size—will eventually need to comply.
What Businesses Need to Prepare
ERP System Integration: Must support mandatory data fields (invoice number, buyer/seller ID, VAT amounts, timestamps, digital signature, QR code, etc.).
E-Invoice Generating Solution (EGS): Businesses register with an OTA-approved provider to issue compliant invoices.
ASP Onboarding: Use certified Access Points or Intermediary Providers to exchange e-invoices within the PEPPOL framework.
Internal Process Mapping: Audit current invoicing practices to account for cash, credit notes, simplified and manual transactions.
Stakeholder Coordination: Engage tax, IT, finance, and external vendors during transition planning.
Key Phased Rollout and Compliance Triggers
Pilot Phase (Q1 2026): Top corporate taxpayers must adopt e‑invoicing voluntarily.
Mandatory Rollout (Mid‑2026): Applies to all large taxpayers.
Full Rollout (Early 2027): All remaining VAT-registered entities including SMEs.
Final Phase – G2B (2028): Government entities mandated to use e-invoices.
Readiness in advance makes future phases less disruptive.
Benefits of E-Invoicing: What’s in It for You
Improved VAT accuracy and compliance
Reduced risk of human error or fraud
Faster invoice delivery and payment processing
Lower environmental footprint and document storage costs
Better audit readiness via real-time invoice verification
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Risks of Non-Compliance
Invoicing with non‑conforming formats or outdated systems
Using un‑approved generating solutions or service providers
Failing to issue e‑invoices for covered transactions
Delaying system readiness—especially before your mandated phase
Non-compliance could mean fines or VAT-related notices once directive rolls out.
Business Readiness: Key Action Steps
Conduct system readiness audit now—assess gaps in your ERP or POS systems.
Select and register with an OTA-accredited EGS and Access Point.
Map all invoice-related processes, including credit notes, returns, B2C simplified sales.
Train staff and define escalation pathways—especially for transaction errors or validation failures.
Establish post‑integration monitoring, documentation, and backup of issued e-invoices.
Practical Scenarios: What Applies to You
Small retailer with monthly VAT return: Fully applicable from Q1 2027.
Mid-size trading company: Begin planning now; mandatory by mid‑2026.
Large corporate: Expect pilot rollout in early 2026; implementation mandatory.
Government department: Starting early 2028, must issue and receive e‑invoices.
Freelancer or SME using manual invoices: Transition from PDFs or handwritten invoices to compliant EGS solution by early 2027.
Key Challenges Others Have Noted
Outdated accounting software complicates transitions—manual entry, QR code insertion, and emailing become burdensome.
Insufficient training leads to errors and delays in invoice validation.
Cost-saving companies avoid system upgrades until non-compliance penalty risk is obvious.
“It takes a lot of time… worst of all no proper training provided.
Don’t repeat their mistakes—invest early in system upgrades and training.
Summary
Mandatory timeline: 2026–2028 in four phases.
Affected parties: All VAT-registered entities (large corporates first, then SMEs, and eventually government actors).
Core requirements: Use OTA-approved EGS and service providers; issue structured invoices; integrate with suppler, buyer and OTA systems.
Get ready now: Audit systems, select provider, train personnel, and adapt processes.
FAQs
1. Does every VAT-registered company need to issue e‑invoices eventually?
Yes—by Q1 2027 all VAT-registered entities, including SMEs, must comply.
2. Do small VAT-registered businesses need to register now?
While rollout is voluntary early on, SMEs must prepare systems and documentation before mandatory deadlines.
3. What is the PEPPOL 5-corner model?
A standardized e-invoicing framework involving buyer, supplier, service provider, e-invoice generating solution, and the tax authority for structured data exchange.
4. Can I keep using PDF invoices after e-invoicing becomes mandatory?
No. Only structured e‑invoices via OTA-approved providers will be compliant.
5. What happens if I miss the rollout deadline?
Expect audit requests, compliance notices, and potential VAT-related penalties from OTA.
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Commonly Asked Questions
What is the minimum investment required to qualify for a residency visa in Oman?
The minimum investment typically starts from OMR 20,000 for standard investor visas. However, the Golden Visa program requires investments starting from OMR 250,000.
Can I own 100% of my business in Oman as a foreign investor?
Yes, Oman allows 100% foreign ownership in most sectors, especially under the Foreign Capital Investment Law. Some regulated sectors may require local participation.
Is real estate investment enough to obtain a residency visa in Oman?
Yes, under the Golden Visa category, purchasing property worth at least OMR 250,000 can qualify you for long-term residency.
What is the difference between the Golden Visa and the Standard Investor Visa?
Golden Visas offer longer residency terms (5–10 years), faster processing, and broader eligibility, while Standard Investor Visas require lower investment but shorter duration and renewals.
How long does the investor visa process take?
On average, it takes 4 to 8 weeks, depending on security clearance, company registration, and documentation accuracy.
Can I apply for residency before launching my business?
You must complete company registration and capital deposit before applying for the residency visa under the business investor category.
Is it necessary to open a corporate bank account in Oman for this process?
Yes, you need to deposit the minimum share capital into a corporate account to receive the capital deposit certificate, which is essential for visa processing.
Are there any age or nationality restrictions for investor visas?
There are no age restrictions, and citizens from most countries are eligible, although background checks and financial verification are required.
Do I need a physical office in Oman for my business registration?
Yes, a registered office address is mandatory — this can be a virtual office, shared workspace, or physical premises, depending on your business type.
What types of businesses are best for investment-based residency?
Tourism, tech, healthcare, logistics, real estate development, and manufacturing are some of the most attractive sectors for foreign investors.
Is free zone investment also eligible for residency visas?
Yes, businesses established in Oman’s free zones like Duqm or Salalah can qualify, though some limitations apply based on visa type and activity scope.
Can I bring my family with me under an investor visa?
Yes, investor visa holders can sponsor family members including spouse and children, subject to documentation and proof of income.
What are the key documents required for an investor visa application?
Passport copies, security clearance, MOA, business license, capital deposit certificate, tenancy contract, and recent photographs are commonly required.
Do I need to hire local employees?
While not mandatory in all cases, certain sectors may require a minimum Omanization rate to qualify for full operational licensing and staff visa issuance.
What happens if I close my company after receiving the residency visa?
Your visa may be cancelled unless you transfer your sponsorship or obtain a different qualifying residency basis (e.g., real estate or employment).
How long is the investor visa valid?
Standard visas are issued for 2–5 years and renewable; Golden Visas are valid for 5 or 10 years, depending on the investment category.
Can I operate multiple businesses under one investor visa?
Yes, but you must ensure each entity is properly registered, and you hold a qualifying ownership percentage in each.
Are there any tax advantages for foreign investors?
Oman offers no personal income tax and competitive corporate tax rates (15%). Free zones also offer tax holidays for up to 10 years.
Can I change business activities after obtaining a visa?
Yes, but you must update your commercial registration and possibly re-obtain approvals or licenses depending on the new activity.
Is a local sponsor required for mainland businesses?
Not anymore in most sectors. Since the law change in 2020, most businesses can be 100% foreign-owned without requiring a local partner.
How do I maintain my visa status if I spend time abroad?
Investor visas typically allow you to spend time abroad, but extended absence (6+ months) may affect renewal or validity, unless explained.
Are digital or online businesses eligible?
Yes, tech and e-commerce businesses are highly encouraged and eligible for both investor and long-term residency options.
Do I need to show ongoing revenue to maintain the visa?
Not always, but inactivity or lack of compliance may risk rejection during renewal. Annual filings and proof of operation are recommended.
Can I apply for residency through an existing business I acquire?
Yes, provided you meet ownership thresholds and the business is compliant with all legal, tax, and licensing requirements.
What is the role of the Oman Investment Authority in this process?
OIA supports large-scale strategic investments, especially in sectors aligned with Vision 2040. Smaller businesses work mainly with MOCIIP and ROP.
Is the visa tied to one company or can I invest in multiple?
You can invest in multiple companies, but your primary residency visa will be tied to the company where you have majority stake or initial approval.
Do I need health insurance for the investor visa?
Yes, valid health insurance is a prerequisite during visa application and renewal processes.
How much capital is required for the Golden Visa through real estate?
You must invest at least OMR 250,000 in approved properties; for 10-year visas, the amount increases to OMR 500,000 or more.
What is the role of the Royal Oman Police (ROP) in this process?
ROP handles visa issuance, background verification, residency cards, and security clearances.
Can I get citizenship through business investment in Oman?
Currently, Oman does not offer direct citizenship-by-investment programs. However, long-term visa holders may be eligible for permanent residency or naturalization under exceptional circumstances.
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