Taxes and e-invoicing in Oman: a practical guide | Hesabat

Oman applies VAT at 5% on most goods and services, administered by the Tax Authority. Companies are subject to income tax on profits, with withholding tax on certain payments and periodic filings with the authority. Oman's national e-invoicing system (Fawtara) is being rolled out in phased stages: starting with large registrants, then smaller companies, up to all registrants, rather than a single completed general mandate. Check the scope and each stage's deadlines with the Tax Authority.

Key points

• A clear tax picture Know the tax type, its rate and how it is calculated on each invoice.
• Organised invoices Issue, number and archive invoices electronically for easy reference.
• Ready-made reports Period tax reports drawn from the same data, with no manual gathering.
• Digitisation impact Move from paper invoices to a digital cycle linked to your ledger.

Common challenges

• Relying on scattered invoices makes period tax totals hard to assemble.
• Paper invoices are easily lost and hard to archive and reconcile.
• Hard to see each invoice's status and the amounts due or paid.
• The tax impact on results is unclear before the period closes.

How the software helps

• Prepare the tax invoice The invoice is prepared with the required tax fields inside the system in Oman.
• Automatic tax calculation Tax is calculated per line and totalled at invoice and report level.
• Invoice lifecycle Track statuses: draft, issued, paid or cancelled, with the reason for each.
• Linked to accounting Every invoice posts an entry and updates customer and inventory balances automatically.
• Archive and search A searchable invoice archive by customer, amount, date and tax number.

Frequently asked questions

What is the VAT situation in Oman?

Oman applies VAT at 5% on most goods and services, administered by the Tax Authority.

Is electronic issuance mandatory?

Oman's national e-invoicing system (Fawtara) is being rolled out in phased stages: starting with large registrants, then smaller companies, up to all registrants, rather than a single completed general mandate. Check the scope and each stage's deadlines with the Tax Authority.

What is the entry price in this market?

The Starter plan begins at 17 Omani rial per month in Oman, with a 14-day trial.