Electronic invoicing in Oman

In the five-corner model defined by the OTA for electronic invoicing, Service Providers, corresponding to corners 2 and 3, act as intermediaries between taxpayers. Their primary function is to validate and exchange electronic invoices between issuers and recipients, as well as to transmit certain tax information to the OTA, which represents the fifth corner of the model. To operate as an accredited Service Provider, companies must complete the accreditation process established by the OTA.

The selection of companies for the first phase was based on various criteria, including revenue level, annual turnover, technological readiness, operational maturity, and representation of diverse economic sectors and types of taxpayers.

Yes. Small and Medium-Sized Enterprises (SMEs) are included in the project and will be incorporated during the third phase of implementation.

No. Invoices must be issued directly in electronic format in accordance with the specifications and formats established by applicable regulations.

Consolidated invoices are not permitted for B2C transactions. Each transaction must be documented with a separate electronic invoice issued individually.

The technical specifications for electronic invoicing provide for the possibility of issuing invoices for intra-group transactions between entities that are part of the same VAT group.

Yes. All entities that are part of the same VAT group must comply with electronic invoicing obligations in accordance with the applicable implementation schedule.

When the seller is not registered for VAT purposes (that is, does not meet the legal registration requirements) they are not required to join the Fawtara electronic invoicing network. In such cases, invoices issued by that seller may not include VAT, and therefore the buyer will not be entitled to deduct input VAT. If a company receives VAT-inclusive invoices issued by unregistered entities, it may report this situation to the OTA.

On the other hand, if the seller is registered for VAT purposes but has not yet been incorporated into the corresponding phase of the Fawtara system, they may continue to use their current invoicing mechanisms as long as they comply with current VAT regulations. In this case, buyers may continue to claim input VAT in accordance with the currently applicable deductibility rules.

The service provider validates the format, business rules, and Schematron rules.

Although the service provider performs the technical validations, the ultimate responsibility for the regulatory compliance of invoices lies with the taxpayers. The OTA will also monitor the performance of service providers and may take appropriate measures in the event of non-compliance with the established requirements.

If the consumer is not yet part of the implementation phase, the supplier must send the invoice through their service provider, who will forward the relevant tax information to the OTA. However, the invoice may continue to be delivered to the consumer using the processes and formats currently in use.

Conversely, when the supplier has not yet been incorporated into the electronic invoicing system, the exchange of invoices between supplier and consumer may continue to be carried out using the traditional mechanisms currently in place.

The QR code is generated by the taxpayer (C1).

Yes. The QR code is mandatory only in the human-readable version of the invoice and is not part of the electronic invoice structure itself.

The QR code will be used by the OTA to verify the authenticity of the electronic invoice in the future via a mobile app.

No. The QR code will be mandatory for all B2C transactions.

The QR code must contain the following fields:

• Seller’s name [IBT-027] 
• Seller’s VAT ID [IBT-031] 
• Timestamp / date and time [IBT-002 {IBT-168}] 
• Total invoice amount (including VAT) [IBT-112] 
• Total VAT amount [IBT-110] 
• Seller UUID [BTOM-004] 

The UUID and the invoice hash serve the same purpose: to ensure the uniqueness and identification of the invoice. For this reason, the adopted model eliminates the separate “Invoice Hash” field, considering the use of the UUID as a unique identifier to be sufficient.

Import transactions must be reported using the self-billing mechanism, through which the taxpayer issues the corresponding documentation to record the transaction in accordance with applicable tax requirements.

Electronic invoices issued for B2B transactions must be sent in real time. For B2C transactions, invoices must be sent within a maximum of 24 hours from the date of issuance.

The B2C model will not be implemented independently. Electronic invoicing requirements for B2C transactions will take effect at the same time as those for B2B and B2G, as part of a joint rollout of the electronic invoicing system.