Oman's Fawtara programme has postponed the implementation of e-invoicing. The first phase of the mandatory rollout is now scheduled for April 2027, with additional groups of VAT-registered businesses to be brought into the framework in subsequent phases.
Businesses outside the first phase still have valuable preparation time. Using it effectively can reduce pressure as their mandatory implementation date approaches.
Fawtara implementation is underway
The Oman Tax Authority has structured Fawtara implementation in phases.
Taxpayers with an annual turnover exceeding OMR 5 million will be required to implement e-invoicing from 1 April 2027, while taxpayers with an annual turnover of less than OMR 5 million, falling under Phase 2, will be required to implement it from 1 October 2027.
In addition, the 150 taxpayers nominated by the Oman Tax Authority to participate in the pilot phase may voluntarily adopt e-invoicing on a flexible basis from 1 October 2026 onwards, depending on the system readiness of the company and the Oman Tax Authority, ahead of the mandatory implementation dates.
The timetable gives businesses a clear reason to assess readiness now.
What should businesses prepare?
Fawtara preparation should begin with existing invoice flows.
Businesses should understand how invoices are generated, which systems hold the required data and where manual processes or data-quality issues could create implementation difficulties.
ERP and accounting systems, tax master data, integration requirements and service provider arrangements should all be reviewed.
Responsibility should also be established across Tax, Finance and IT so that implementation does not depend on one function working in isolation.
What else is happening across the Middle East?
Omani groups with regional operations should consider several parallel tax developments.
The UAE is approaching the first mandatory stage of its e-invoicing rollout. Qatar has launched Pillar Two registration, while Bahrain and Kuwait are progressing with Domestic Minimum Top-up Tax (DMTT) compliance. Saudi Arabia's current Tax Amnesty Initiative is due to run until 31 December 2026, subject to its applicable conditions.
Maintaining a regional tax calendar can help businesses identify where resources will be required next.
What should Oman businesses do now?
VAT-registered businesses should confirm their expected Fawtara phase and begin assessing invoice flows, technology and data readiness well ahead of onboarding.
How BDO Oman can help
As an accredited e-invoicing Service Provider in Oman, BDO Oman can support businesses through their Fawtara transition, combining implementation capabilities with in-house tax expertise.
How many elements of your Fawtara implementation plan are already in place?
Speak to our team to assess your readiness and identify the work required before your applicable rollout.