Oman’s ambitious journey towards mandatory B2B e-invoicing, initially set to be implemented by October 2024, has faced a significant delay. The Sultanate of Oman’s Tax Authority expects the finalization of the tender in November 2024. The pilot phase of e-invoicing is anticipated to begin on January 1, 2026. This postponement reflects the complexities involved in transitioning to a digital invoicing system and underscores the importance of getting the details right.
- E-Invoicing Timeline: While the OTA has not officially announced a specific timeline for e-invoicing implementation, the tender details provide some insight into the expected phases and deadlines
- December 2024 - November 2025: The project will focus on gathering requirements, completing the design phase, finalizing the solution architecture, and conducting development and testing.
- August 2024: The e-invoicing tender was announced.
- November 2024: Finalization of the tender expected.
Here is the expected timeline for e-invoicing in Oman:
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Timeline
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Phases
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Details
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1st January 2026
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Rollout 1: Pilot Rollout Phase
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Voluntary adoption for large companies (around 100) to refine the system and prepare for broader rollout.
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1st July 2026
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Rollout 2: For Large Taxpayers
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For large taxpayers (based on turnover), with the system fully operational for this group.
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1st January 2027
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Rollout 3: All Businesses
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For all businesses, including SMEs, with a six-month adoption window.
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1st January 2027
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Rollout 4: Government-to-Business (G2B)
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For all Government-to-Business (G2B) transactions.
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The system will cover all VAT-registered businesses and transaction types, including B2B, B2G, G2B, and B2C.
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 expected timelines and may be subject to change.
Current Developments and Insights
While the OTA has not provided an official model or technical specifications, they have issued a tender for the design and implementation of the Integrated E-Invoice Platform (IEP). This tender offers crucial insights into the future of e-invoicing in Oman. However, it remains unclear whether the OTA will implement the Continuous Transaction Control (CTC) model or an alternative framework, such as Peppol, where:
- The OTA validates and oversees all e-invoices through a middleware system.
- The system connects buyers, suppliers, and the authority.
Benefits and Challenges of E-Invoicing
Mandatory e-invoicing offers numerous benefits, including:
- Improved tax compliance.
- Reduced administrative burdens.
- Enhanced transparency.
However, the transition also presents challenges, such as:
- Investing in compatible e-invoicing software.
- Training staff on new procedures.
- Ensuring system interoperability with national and international standards.
What Businesses Should Do Now
While the mandatory phase has been postponed, businesses should not delay in preparing for the transition. The voluntary phase still presents an opportunity to get ahead of the curve. Companies can start familiarizing themselves with e-invoicing processes, integrating necessary software, and training their teams.
By taking proactive steps now, businesses can ensure they are ready when the mandatory phase finally arrives in 2025. Moreover, early adoption could provide valuable insights and a competitive advantage in adapting to Oman’s evolving digital landscape.
Conclusion
Oman’s delay in implementing mandatory B2B e-invoicing reflects the complexity and importance of this initiative. While the postponement to 2025 gives businesses more time to prepare, it also underscores the need for careful planning and collaboration between the Tax Authority and the private sector. Companies should use this extended timeline to their advantage, ensuring a smooth transition when e-invoicing becomes a requirement.
This postponement is not a setback but rather an opportunity to ensure that Oman’s e-invoicing system is robust, efficient, and ready to meet the needs of its business community.