Oman to roll out e-invoicing to speed up tax payments

System due in third quarter of 2026

Oman is third GCC state to go digital step

Tax cash needed ‘to diversify economy’

Oman will introduce an e-invoicing system in the third quarter of next year as part of its plans to speed up tax payments. 

The system will fast-track the submission of business invoices for tax payment and improve accuracy and efficiency, the Oman Tax Authority said. 

Oman is the third GCC country to adopt e-invoicing. Saudi Arabia began a phased implementation in December 2021 while the UAE plans to introduce it in the second quarter of next year.  

“The tax regime is relatively new to the region,” Salim Al Saifi, a retired financial adviser at the Ministry of Finance, told AGBI.

“Oman and its neighbours now can see the financial benefits and electronic invoicing will speed up business transactions and tax payments. Oman, in particular, needs the tax cash to diversify its economy,”

Oman collected $5.4 billion in tax revenues last year, up from $5.3 billion in 2023. 

It charges corporate income tax at 15 percent and VAT at 5 percent. It will become the first country in the Gulf to charge personal income tax when it introduces a 5 percent levy in January 2028. 

Oman posted a budget surplus of $1.4 billion last year, thanks to higher oil revenues. It sold oil at an average price of $82 per barrel, a third higher than the forecast of $60 per barrel. 

The surplus and tax revenues will help reduce the country’s debt, which stands at $40 billion. 

Oman relies heavily on its oil production of 1 million barrels per day, which provides 72 percent of its national revenues.