Regulatory updates - Jordan

The Ministry of Finance and Sales Tax Department recently announced that phase two would take place on April 1, 2025.

The implementation of e-invoicing in Jordan started back in 2022. On May 31, 2024, the registration for the e-invoicing system JoFotara concluded.

Although not many details were released, the following information was mentioned:

• Invoices must be issued by the electronic national billing system or a system that has been linked electronically with the electronic national billing system;
• It is mandatory to issue and provide the original tax invoice.

More information about the phase 2 outline is available here (in Arabic).

On 14 February 2024, the Income and Sales Tax Department (ISDT) issued a notice urging company owners, establishments, and individuals in the scope of the national e-invoicing system to register their entities and activities in order to ensure legal compliance.

The ISDT highlighted the benefits of registering in the national electronic invoicing system, such as speeding up tax-related tasks, expediting tax clearance and relieving the burden of traditional bookings and auditing processes.

The announcement also emphasizes the importance of swift registration and alignment with system requirements to avoid legal consequences and potential fines. Interested parties can register through this link.

This development has a significant impact on businesses operating in the country. Pagero is actively analyzing the implications of this announcement and will provide updates to stakeholders in due time. Stay tuned for further information.

The billing system will be free of charge to the groups in the scope and will offer taxpayers benefits like:

• Reducing their expenses;
• Speeding up the completion of tax transactions;
• Accelerating their access to tax services;
• Expediting obtainment of tax clearance and refunds, in addition to
• Allowing taxpayers to issue invoices through the system if they do not have an e-invoicing solution.

The e-invoicing system will have accessibility features and is built to work through different means. Aside from all the functionalities and flexibility, the platform is user-friendly, safe to use, highly protected and confidential.

Key objectives of the e-invoicing solution

Alongside benefits for the taxpayers, the government aims to achieve the following with this system:

• Mitigation and avoidance of fraud and tax evasion;
• Voluntary commitment from the taxpayers;
• Improve the relationship between the ISTD and the taxpayers, and
• Improve productivity and sustainability.

How does the system work?

Through the platform, an e-invoice is issued in compliance with the Income Tax Law No 38 of 2018. Every document is preserved in an organized electronic format and contains the conditions of the tax invoice according to the provisions of the billing affairs and control system.

The registration of the taxpayers on the electronic billing system will be available by entering the website of the ISTD and logging in with the tax number and password. The ISTD will provide support and technical assistance to smoothly take the taxpayers through the workflow.

More information can be found in the guidelines for joining the Jordanian national billing system.