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OmanFawtara / Peppol5% VATSPF Payroll

ERP Software Oman

Fawtara is here. Is your invoicing data ready for it?

Oman's mandatory e-invoicing programme entered its pilot phase in August 2026 and reaches SMEs by August 2027. Avance Technologies implements ERP for Omani businesses with Fawtara-ready invoice data, 5% VAT, Social Protection Fund payroll and the leave rules introduced by Royal Decree 53/2023 — serving Muscat, Sohar, Salalah and Nizwa from Dubai.

WhatsApp for Free ConsultationCommon Questions
✓ Fawtara / Peppol ready
✓ 5% Oman VAT (OTA)
✓ SPF payroll (RD 52/2023)
✓ RD 53/2023 leave rules
✓ OMR & multi-currency

What does Oman's Fawtara mandate require?

Quick answer

Fawtara is Oman's mandatory B2B e-invoicing programme, run by the Oman Tax Authority on the Peppol network. The OTA became a Peppol Authority in January 2026 and published the PINT OM specification in April 2026. Valid formats are XML in UBL 2.1 and PDF/A-3, exchanged through accredited access points. The pilot began in August 2026 with around 100 large taxpayers; large businesses follow in February 2027 and SMEs in August 2027.

Oman regulatory position, verified 19 August 2026
ItemPosition
E-invoicingFawtara, Peppol-based, phased from Aug 2026
E-invoice formatXML (UBL 2.1, PINT OM) and PDF/A-3
VAT5% since 16 Apr 2021 (RD 121/2020)
VAT registrationMandatory above OMR 38,500
Social insuranceSocial Protection Fund (RD 52/2023)
Labour LawRD 53/2023

The Fawtara rollout, phase by phase

Oman is the third GCC country to build a mandatory e-invoicing regime on Peppol, after Saudi Arabia and the UAE. The Oman Tax Authority contacts affected taxpayers directly ahead of each phase — but the work of structuring invoice data and connecting an access point sits with you, and it does not compress well.

Phase 1
August 2026
Pilot — around 100 of the largest VAT-registered taxpayers, invited directly by the OTA.
Phase 2
February 2027
Large VAT-registered businesses.
Phase 3
August 2027
Remaining VAT-registered taxpayers, including SMEs.
Phase 4
To be announced
Government institutions and entities.

Timeline verified 19 August 2026 against the Oman Tax Authority's Peppol Authority recognition and the PINT OM specification. Dates for phases not yet reached can move — confirm your own obligation with the OTA or your tax adviser. If you also invoice into the UAE, see our UAE e-invoicing connector, which addresses the same Peppol architecture under a different regime.

What the 2023 laws changed for payroll

Two Royal Decrees issued in July 2023 reset the rules that Omani payroll and leave configuration depend on. Systems carried over from the previous regime will calculate some entitlements on superseded rules.

Social Protection Fund — RD 52/2023Replaced the previous fragmented pension and insurance arrangements with a unified fund, and extended certain coverage to non-Omani workers. Contributions vary by employee category, insured wage and branch.
Working hours — RD 53/2023An eight-hour day and a 40-hour week. Overtime and shift patterns configured against the current limits rather than the previous ones.
Sick leave — up to 182 daysA tiered scale: 100% of pay for the first 21 days, stepping down to 35% from day 71. The tiers are calculated inside the payroll run rather than worked out by hand each month.
Maternity and paternityMaternity leave of 98 days and paternity leave of seven days, with protections for pregnant workers and nursing mothers.
Termination compensationUnfair-dismissal awards capped at 12 months' total pay, replacing the previously uncapped position.
What this means for your ERPLeave types, accrual rules and pay tiers need to be re-checked against the 2023 position. Avance validates these during implementation instead of shipping a fixed table.

What we configure for Oman

Fawtara readiness, Oman VAT, Social Protection Fund payroll and the 2023 Labour Law entitlements, configured to the agreed implementation scope.

Fawtara E-Invoicing Readiness

Invoice data structured for XML (UBL 2.1) under the PINT OM specification, with PDF/A-3 output. Because Fawtara runs on Peppol, exchange happens through an accredited access point — scoped and connected as part of the project rather than left to you.

5% Oman VAT

Standard-rate VAT under Royal Decree 121/2020, in force since 16 April 2021. Tax invoices, credit notes and VAT return reports for filing with the Oman Tax Authority. Registration thresholds tracked so you know when OMR 38,500 is in sight.

Social Protection Fund payroll

SPF contributions under Royal Decree 52/2023, calculated by employee category, insured wage and applicable branch, with Omani and non-Omani staff treated separately. Rates are configured to your organisation and validated at implementation, not hard-coded.

Royal Decree 53/2023 leave rules

Leave types and accrual configured to the 2023 Labour Law: 40-hour week, tiered sick leave to 182 days, 98 days maternity, seven days paternity. The tiered sick-pay scale is calculated in the payroll run rather than worked out by hand.

Arabic and bilingual output

Arabic RTL interface, Arabic invoices and customer records, and bilingual English/Arabic reporting where a mixed team needs both.

Inventory across Oman sites

Stock control spanning Muscat, Sohar, Salalah and Nizwa locations. AVCO/FIFO costing, bin locations and automatic reorder points.

Accounting in OMR

General ledger, AR/AP and bank reconciliation in Omani Rial with multi-currency handling for import-heavy trading businesses.

Manufacturing and projects

Bills of materials, work orders and production planning for Omani manufacturers, and project costing for contracting businesses.

Why Oman businesses choose Avance

Fawtara scoped before the deadline, not afterPhase 3 reaches SMEs in August 2027. Structuring invoice data and connecting an access point is a project, not a switch — starting while the deadline is still distant is what keeps it cheap.
One Peppol story across the GCCOman is the third GCC country to build its mandate on Peppol, after Saudi Arabia and the UAE. If you trade across the Gulf, the same architecture serves more than one regime.
Payroll rebuilt for the 2023 resetRoyal Decree 52/2023 and 53/2023 changed both social insurance and leave entitlements. Payroll configured against the current law rather than carried over from the previous regime.
Team experience since 2000Our team has been developing and implementing ERP systems since 2000, with manufacturing, trading and services projects across the UAE, Oman and the wider GCC.
Remote implementation from DubaiRequirements, configuration, data migration and training run remotely, with on-site visits for go-live milestones when the project calls for it.

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Frequently asked questions about ERP in Oman

Does Oman have mandatory e-invoicing?
Yes. The Oman Tax Authority is introducing mandatory B2B e-invoicing under a national programme called Fawtara, built on the Peppol network. The OTA was formally recognised as a Peppol Authority in January 2026 and published the PINT OM specification in April 2026. Oman is the third GCC country to adopt Peppol for a mandatory regime, after Saudi Arabia and the UAE.
When does my Oman business have to be on Fawtara?
Phase 1 began in August 2026 as a pilot covering around 100 of the largest VAT-registered taxpayers, contacted directly by the OTA. Phase 2 extends to large VAT-registered businesses in February 2027, and Phase 3 reaches the remaining VAT-registered taxpayers including SMEs in August 2027. A fourth phase for government entities has not been dated. Verified 19 August 2026 — confirm your own position with the OTA or your tax adviser.
What e-invoice format does Fawtara require?
The OTA has confirmed XML in UBL 2.1 following the PINT OM specification, and PDF/A-3, as the valid formats. Because the model is Peppol-based, invoices move through accredited access points rather than being uploaded to a portal one at a time. Avance scopes the access-point connection as part of the implementation.
Is there VAT-compliant accounting software for Oman?
Yes. Oman introduced VAT at 5% under Royal Decree 121/2020, effective 16 April 2021. Registration is mandatory where annual supplies exceed OMR 38,500 and voluntary above OMR 19,250. Avance ERP applies Oman VAT across configured transaction types, produces tax invoices and credit notes, and generates VAT return reports for filing with the OTA.
How does your HR software handle Oman social insurance?
Oman's social insurance was restructured by Royal Decree 52/2023, which created the Social Protection Fund in place of the previous fragmented arrangements and extended certain coverage to non-Omani workers. Contributions vary by employee category, insured wage, branch and effective date, and differ between Omani and non-Omani employees. Avance payroll is configured to the rates applicable to your organisation and validated during implementation.
What did the 2023 Labour Law change for payroll?
Royal Decree 53/2023 reset several entitlements payroll depends on: an eight-hour day and 40-hour week, sick leave of up to 182 days on a tiered scale from 100% of pay for the first 21 days down to 35% from day 71, maternity leave of 98 days, paternity leave of seven days, and a 12-month cap on unfair-dismissal compensation. Leave types and pay tiers are configured to match.
How much does ERP cost in Oman?
ERP implementation in Oman typically costs OMR 2,000-30,000 depending on modules, users and customisation, and on whether Fawtara access-point integration is in scope. Avance provides a free scoping consultation before any commitment.
Can you implement ERP remotely for Oman businesses?
Yes. Avance implements ERP for Oman businesses remotely from Dubai — requirements, configuration, data migration, training and go-live support. On-site visits are available for key milestones.

Ready to implement ERP in Oman?

Tell us where you sit in the Fawtara rollout and we will scope the implementation around it — invoice data, access point, VAT and SPF payroll. Free consultation, no commitment.

Free consultation · No commitment · UAE-based team serving Oman

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