The Director General of the Income and Sales Tax Department, Hossam Abu Ali, called on those obligated to use the national electronic invoicing system to reconcile their situations legally via an electronic link. The reconciliation entails registering and joining the national electronic invoicing system before the end of May. This would allow taxpayers to avoid penalties.
&nbsp;
All invoices for the sale of goods or services in Jordan must be issued through JoFotara or via systems directly integrated with the platform. Only invoices generated through JoFotara are considered valid and can be claimed for a tax deduction.&nbsp;
&nbsp;
SCOPE
Transactions: B2G (business-to-government), B2B (business-to-business), and B2C (business-to-consumer).
&nbsp;
Documents: Income invoices, sales invoices, special sales invoices, simplified invoices, and credit invoices (for income invoices, sales invoices, and special sales invoices).
&nbsp;
TIMELINE&nbsp;
<ul>
<li>2019: standardization of invoice content and record retention</li>
<li>2021: JoFotara (National Electronic Invoicing System) was developed developed</li>
<li>2022: A pilot for large taxpayers to adopt voluntarily</li>
<li>2023&ndash;2024: Phase 1 large taxpayers and pilot groups, based on criteria set by the ISTD&nbsp;</li>
<li>April 1, 2025: Phase 2 obligation for most businesses to join the system</li>
<li>2026 and beyond: Gradual onboarding of SMEs and remaining sectors</li>
</ul>
&nbsp;
Access the official announcement <a href="https://www.boutique.afnor.org/fr-fr/norme/xp-z12013/api-pour-interfacer-les-systemes-dinformations-des-entreprises-avec-les-pla/fa212532/444702" target="_blank" rel="noopener">here</a>.

To encourage taxpayers who are obligated but have not adhered to the mandate yet, the tax authorities have stated that they will remove penalties for those who comply with the mandate obligations before the end of May 2025.

Removal of fines for taxpayers who reconcile their situation before the end of May 2025

Back on 2022 the Income and Sales Tax Department (ISTD), in collaboration with the Ministry of Digital Economy and Entrepreneurship (MDEE) initiated a deployment of a national invoicing system.
&nbsp;
Established businesses with thresholds Exceeding 75,000 JOD (aprox. 99,000 EUR), which incur B2B, B2C and B2G transactions are in scope for this mandate. The deadline to register to the national invoicing system JoFotara concluded last year, on May 31, 2024.
&nbsp;
Recently, a new announcement was done regarding JoFotara requirements. The Ministry of Finance and Sales Tax Department stated that phase two would take place on April 1, 2025.
&nbsp;
Although not many details were released, the following information was mentioned:
<ul>
<li>Invoices must be issued by the electronic national billing system or a system that has been linked electronically with the electronic national billing system;</li>
<li>It is mandatory to issue and provide the original tax invoice.</li>
</ul>
&nbsp;
More information about the phase 2 outline is available <a href="https://istd.gov.jo/AR/NewsDetails/%D8%A3%D8%A8%D9%88_%D8%B9%D9%84%D9%8A_%D8%B5%D8%AF%D9%88%D8%B1_%D8%A7%D9%84%D8%A5%D8%B7%D8%A7%D8%B1_%D8%A7%D9%84%D8%AA%D8%B4%D8%B1%D9%8A%D8%B9%D9%8A_%D9%84%D9%84%D8%A8%D8%AF%D8%A1_%D8%A8%D8%AA%D8%B7%D8%A8%D9%8A%D9%82_%D8%A7%D9%84%D9%85%D8%B1%D8%AD%D9%84%D8%A9_%D8%A7%D9%84%D8%AB%D8%A7%D9%86%D9%8A%D8%A9_%D9%85%D9%86_%D9%86%D8%B8%D8%A7%D9%85_%D8%A7%D9%84%D9%81%D9%88%D8%AA%D8%B1%D8%A9" target="_blank" rel="noopener">here</a> (in Arabic).

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

Jordan continues moving forward with the implementation of e-invoicing phase 2

On 14 February 2024, the Income and Sales Tax Department (ISDT) issued a <a href="https://istd.gov.jo/Ar/NewsDetails/%D8%AF%D8%A7%D8%A6%D8%B1%D8%A9_%D8%A7%D9%84%D8%AF%D8%AE%D9%84_%D9%88%D8%A7%D9%84%D9%85%D8%A8%D9%8A%D8%B9%D8%A7%D8%AA_%D8%AA%D8%AF%D8%B9%D9%88_%D9%84%D9%84%D8%AA%D8%B3%D8%AC%D9%8A%D9%84_%D9%81%D9%8A_%D9%86%D8%B8%D8%A7%D9%85_%D8%A7%D9%84%D9%81%D9%88%D8%AA%D8%B1%D8%A9" target="_blank" rel="noopener">notice</a> 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.
&nbsp;
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.
&nbsp;
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 <a href="https://portal.jofotara.gov.jo/ar/login" target="_blank" rel="noopener">this link</a>.
&nbsp;
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.

Taxpayers in Jordan are urged to enroll and utilize the national electronic invoicing system to reap its advantages and prevent any repercussions associated with non-compliance.

Jordan makes an announcement to taxpayers regarding e-invoicing adoption

The billing system will be free of charge to the groups in the scope and will offer taxpayers benefits like:
<ul>
<li>Reducing their expenses;</li>
<li>Speeding up the completion of tax transactions;</li>
<li>Accelerating their access to tax services;</li>
<li>Expediting obtainment of tax clearance and refunds, in addition to</li>
<li>Allowing taxpayers to issue invoices through the system if they do not have an e-invoicing solution.</li>
</ul>
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.
&nbsp;
Key objectives of the e-invoicing solution
&nbsp;
Alongside benefits for the taxpayers, the government aims to achieve the following with this system:
<ul>
<li>Mitigation and avoidance of fraud and tax evasion;</li>
<li>Voluntary commitment from the taxpayers;</li>
<li>Improve the relationship between the ISTD and the taxpayers, and</li>
<li>Improve productivity and sustainability.</li>
</ul>
How does the system work?
&nbsp;
Through the platform, an e-invoice is issued in compliance with the <a href="https://istd.gov.jo/ebv4.0/root_storage/en/eb_list_page/income_tax_law_no_34_of_2014_amended_by_law_no_38_of_2018.pdf" target="_blank" rel="noopener">Income Tax Law No 38 of 2018</a>. 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 <a href="https://istd.gov.jo/ebv4.0/root_storage/en/eb_list_page/procedures_guide_to_link_with_the_jordanian_electronic_national_billing_system.pdf" target="_blank" rel="noopener">guidelines</a> for joining the Jordanian national billing system.

ISTD (Income and Sales Tax Department) has launched the Jordanian countrywide e-invoicing solution and begun incorporating enterprises into the platform. The government&rsquo;s initiative aims to streamline and facilitate submitting and processing of tax returns for individuals and companies.

Jordan has launched a billing system, starting the joining period for businesses 

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