Oman Tax Authority amends VAT Executive Regulations

In preparation for the roll out of electronic invoicing (e-invoicing), the Oman Tax Authority (OTA) has issued Ministerial Decision No. 189/2026 (Decision) amending certain provisions of the Oman VAT Executive Regulations. The Decision was published in the Official Gazette on 9 August 2026 and comes into effect on the dates mentioned below. These dates also reflect the timeline for e-invoicing implementation by the corresponding categories of taxable person. 

1. While the Decision disregards the pilot phase (where the OTA originally selected 100 large taxpayers to go-live in August 2026), the OTA, in its online workshop (held on 11 August 2026) encouraged these taxpayers to go-live by October 2026 instead of the mandatory implementation timelines announced by the Decision. The OTA also clarified that there would be no penal implications for taxpayers that were part of the pilot phase for non-compliance with e-invoicing requirements up to 31 March 2027. The Decision, however, does not clarify whether government entities/ministries, originally part of the fourth phase of implementation (expected to go-live in 2028), must follow the mandatory implementation timelines announced by the Decision.  
2. The Decision does not clarify the manner of computing the value of annual supplies. While Article 56 of the Oman VAT Law specifies the manner of computing the value of supplies, its application is limited for the purposes of determining Oman VAT registration requirements.
3. Article 143 of the Oman VAT Executive Regulations amended by the Decision does not explicitly mention e-invoicing for transactions such as import of goods, import of services and out-of-scope supplies. The OTA, in its previous workshops on e-invoicing had clarified that e-invoicing would be mandatory for import of goods and services, and optional for out-of-scope supplies.

With e-invoicing implementation timelines and requirements now codified in the Oman VAT legislation, businesses should assess their readiness to go‑live. Timely preparation will help minimize disruptions and risks as implementation deadlines approach.

KPMG has a dedicated team of experienced indirect tax specialists in Oman, supported by a wider regional team including tax technology specialists with significant hands-on experience implementing e-invoicing in other jurisdictions. Should you require assistance with e-invoicing or any indirect tax matters in Oman, please reach out to your KPMG advisor or the contacts below.