Oman Adopts Peppol Framework and Solidifies "Fawtara" Timeline for 2026
The Oman Tax Authority (OTA) was officially approved as a Peppol Authority on January 7, 2026. This milestone cements the country's commitment to the Peppol interoperability framework as the backbone of its upcoming national e-invoicing system, "Fawtara."
A Strategic Shift to the 5-Corner Model
The OTA's new status allows it to govern the local implementation of the Peppol network, ensuring that Oman's e-invoicing infrastructure aligns with international standards while meeting specific national tax requirements.
Why Peppol?
By adopting the Peppol framework, Oman is implementing a "5-corner model" for its digital economy. This model enables seamless, automated data exchange between:
- Supplier
- Supplier's Service Provider
- Network (Peppol)
- Buyer's Service Provider
- Buyer
Crucially, the "5th corner", the Tax Authority, receives real-time reporting of transaction data simultaneously, enhancing VAT compliance and reducing the shadow economy.
The "Fawtara" Implementation Roadmap
With the regulatory framework now confirmed, the OTA has outlined a clear schedule for service providers and taxpayers to prepare for the Fawtara system.
Key Milestones for 2026
- Q1 2026: The official registration portal opens for Service Providers to begin the accreditation process.
- Q2 2026: A testing environment becomes available, allowing accredited providers to validate their solutions against OTA technical standards.
- Q3 2026 (August): The pilot phase officially launches. This initial wave will mandate participation from 100 selected large VAT-registered companies, who will begin exchanging live invoices via the new infrastructure.
Following the pilot, the mandate will expand rapidly:
- February 2027: Mandatory for all large VAT-registered companies.
- August 2027: Mandatory for all remaining VAT-registered taxpayers (SMEs).
Technical Requirements at a Glance
To ensure interoperability, the system will rely on specific technical standards:
- Format: Invoices must be generated in UBL 2.1 XML format.
- Content: The data dictionary specifies 53 mandatory fields for standard tax invoices.
- Language: The system supports both Arabic and English.
- Archiving: A 10-year archiving period is mandatory for invoice data.
Businesses operating in Oman should immediately assess their readiness to integrate with Peppol-accredited service providers to meet the upcoming August deadline.
There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.
