Compliance and Regulations
Oman Fawtara e-invoicing: status & guide
Summary
Fawtara is Oman's mandatory Business-to-Business (B2B) e-invoicing regime, scheduled for a phased rollout starting in 2026.
Implementation is based on a five-corner model to manage the reporting and compliance flow between all transacting parties and the OTA.
The rollout is phased, beginning with around 100 of the largest VAT-registered taxpayers in August 2026.
The draft Data Dictionary defines the anatomy of a compliant e-invoice, including document types and metadata.
Critical technical elements, such as exact schema versions, validation rules, and testing schedules, are still provisional and remain subject to final OTA guidance.
Oman is launching a mandatory Business-to-Business (B2B) e-invoicing regime under its national program, Fawtara, which is scheduled for a phased rollout starting in 2026. This initiative by the Oman Tax Authority (OTA) aims to digitalize and standardize invoicing across the country. As the Fawtara program advances, the OTA recently published and circulated a draft e-invoicing data dictionary to selected taxpayers on December 1, 2025, providing the first concrete technical requirements for compliant transactions.
Fawtara: The implementation model and phased timeline (planned)
The OTA is implementing its national e-invoicing programme, Fawtara, through a five-corner model: Supplier (corner 1) <> Supplier's accredited service provider (ASP) (corner 2) <> Buyer's ASP (corner 3) <> Buyer (corner4), with automatic (near-) real time reporting to the OTA (corner 5).
The rollout is phased, with Phase 1 planned to begin in August 2026. This initial phase will involve around 100 of the largest VAT-registered taxpayers, subject to OTA confirmation. Later phases, for which precise timelines are yet to be confirmed with certainty, will cover other large taxpayers and then the remaining VAT-registered businesses, with full completion expected by 2028.
The draft Data Dictionary
The draft Data Dictionary defines the standard data elements, mandatory and conditional fields, validation rules, and code lists for compliant e-invoices under the Fawtara programme. It distinguishes document types (tax invoice, simplified invoice, credit/debit notes, prepayment invoices) and specifies required metadata (UUIDs, invoice hashes, and QR-code/digital signature features for certain simplified invoices). These requirements are described in OTA materials circulated to selected taxpayers and summarised by leading advisory firms.
Practical requirements for businesses
Based on the defined implementation model and the draft technical specifications, companies must address the following practical requirements to ensure a smooth transition to the mandatory e-invoicing framework:
Large VAT-registered businesses selected for Phase 1 must prepare to issue and receive structured e-invoices in the OTA-specified schema and to integrate with an Accredited Service Provider (ASP) or equivalent channel.
Systems (ERP/billing) must be able to populate mandatory fields (seller/buyer IDs, VAT details, product classification codes such as HS - Harmonized System codes, the international tariff and product classification used in customs and trade, where applicable, and line-level VAT data) and produce the required metadata (UUID, invoice hash, QR where applicable).
For simplified/B2C invoices, the draft contemplates compact representations and possible QR-code/digital signature requirements. Businesses in retail and hospitality should plan for high-volume processing and potential POS integration.
What remains subject to change or consultation
The draft e-invoicing Data Dictionary is still a draft for consultation. Certain elements, including exact schema versions, detailed validation rules, and the timing for ASP accreditation and test portals, remain subject to final OTA guidance and potential amendment following stakeholder feedback. Businesses should monitor OTA announcements and advisor updates for final technical specifications and timelines.
Practical next steps
To ensure a smooth and compliant transition to the Fawtara regime, businesses should prioritize the following practical steps as a matter of priority:
Determine your phase: Confirm whether your company is within Phase 1 selection or will be included in Phase2 or Phase 3. If selected, engage early with OTA workshops and your ERP/IT teams.
Review and remediate master data: Ensure buyer/seller legal IDs, customer VAT treatment, and product HS codes are accurate so mandatory fields can be populated.
Plan system integration: Integrate with an Accredited Service Provider (ASP) or middleware that supports the five-corner model and OTA reporting.
Use pilot/testing windows: Validate message schemas, signatures, QR generation, and high-volume throughput in OTA test portals once available.
Conclusion
Oman’s e-invoicing programme continues to advance, with the draft Data Dictionary setting the foundation for the technical and data requirements businesses must follow. Although the five-corner model and phased rollout have been outlined, several technical details remain under consultation. With the first phase expected to begin in the second half of 2026, companies, especially large VAT-registered taxpayers, should monitor OTA updates and start preparing their systems and data to ensure smooth compliance.
The move to e-invoicing, as seen in Oman and across the globe, is part of a wider shift toward mandatory digital compliance. To ensure your business is prepared for evolving mandates worldwide, from new technical standards to phased rollouts, be sure to follow us on LinkedIn.
