A taxable person in Oman must issue a tax invoice upon supplying goods or services or upon receiving consideration before the supply takes place, and this invoice must include specific particulars set out in the executive regulations. A simplified tax invoice may be issued if the value of the supply, excluding tax, is less than OMR 500 in total, or in any other case determined by the Tax Authority.

When a Tax Invoice Must Be Issued

The Value Added Tax Law provides that a taxable person must issue a tax invoice upon supplying goods or services, including a deemed supply, or upon receiving consideration in whole or in part before the date of supply. The taxable person may delegate the issuance of the invoice to another party after obtaining the Authority's approval.

Mandatory Particulars of a Full Tax Invoice

The executive regulations of the Value Added Tax Law specify the particulars that a tax invoice must contain, including in particular the phrase "tax invoice," the date of issue of the invoice, the date of supply, and the date of payment, the serial number of the invoice, and the full name, address and tax identification number of the supplier.

The Simplified Tax Invoice

As an exception to the rules for a full invoice, a taxable person may issue a simplified tax invoice if the value of the supply, excluding the tax, is less than OMR 500 in total, or in any other case determined by the Tax Authority, without needing its prior approval.

Retention Period for Invoices and Records

A taxable person must retain tax invoices, accounting records, ledgers, and customs documents related to the import and export of goods for 10 years following the end of the tax year in which the related tax return was filed, and this period extends to 15 years for invoices and records related to real estate.

Invoice Currency

A tax invoice may be issued in Omani Rial or in any other currency, provided that the value of the tax is calculated in Omani Rial based on the average buying and selling rate of the currency announced by the Central Bank of Oman on the date the tax becomes due.

Why Complying with Invoice Particulars Matters

A tax invoice is not merely a record of a sale; it is the document a taxable customer relies on to deduct the input tax related to its purchases. If an invoice omits a mandatory particular, or is issued in breach of the provisions set out in the executive regulations, the customer may be unable to prove its entitlement to the deduction when the Tax Authority examines its tax return. Reviewing the invoice template used by any business, and confirming it matches the mandatory particulars, is therefore an essential preventive step before issuing invoices to customers.

Legal References

For questions about your specific situation, you can ask the Oman Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.