Jordan
ERP and JoFotara e-invoicing software for Jordan
JoFotara clearance has been mandatory since April 2025. Submit, clear and print with the official QR code — in Arabic, with the three-decimal dinar handled correctly.
Compliance summary
Mandatory now- Tax authority
- Income and Sales Tax Department (ISTD)
- E-invoicing
- Mandatory — JoFotara national billing, pre-issuance clearance
- VAT rate
- 16%
- Currency
- JOD
Last reviewed . Rates and deadlines change — confirm the current position with the authority above before you act on it.
What your invoice must carry
What JoFotara checks before you may issue
-
Clearance before the customer sees it
JoFotara validates the invoice and returns the official QR code before it may be issued. The system needs a blocking clearance step with queue and retry handling, not an after-the-fact report.
-
UBL 2.1 in the ISTD schema
Income, sales, simplified and credit invoices each map to the national schema. A near-miss on a field is a rejection, not a warning.
-
Three-decimal dinar
The dinar divides into 1,000 fils. Systems that hard-code two-decimal rounding produce filed totals that will not reconcile with ISTD — a defect that only shows up at scale.
-
Zone-aware and multi-tier tax
General sales tax at 16% alongside 1, 2, 4, 5, 10 and 24% categories, plus zero rating by location for Aqaba, free zones and development areas.
This is live, not coming
JoFotara moved from selected large taxpayers to the general taxpayer population on 1 April 2025, covering business, consumer and government invoices, with the penalty grace period ending that May. Onboarding of smaller enterprises and professional syndicates continues, and enforcement pressure has increased rather than eased.
The useful question for a vendor is therefore not whether they are "ready for JoFotara" but what their software does at 11am when the portal is slow and a customer is waiting.
The dinar detail that breaks imported systems
Most global ERPs assume two decimal places because most currencies have two. The Jordanian dinar has three, and rounding line tax at two decimals produces totals that drift from what ISTD computes.
Tax is calculated per line at the correct precision and the document keeps the rate that applied on its own date, so a credit note against an older invoice carries the older rate and your comparatives stay true.
Withholding on professional services
Payers withhold 5% on services from resident individuals and civil companies — doctors, lawyers, engineers, auditors, consultants and brokers — which has to happen at the moment the payable is booked rather than being reconstructed at year end.
Common questions
Is JoFotara e-invoicing mandatory in Jordan?
Yes. JoFotara moved from selected large taxpayers to the general taxpayer population on 1 April 2025, covering business, consumer and government invoices, and the penalty grace period ended that May. Onboarding of smaller enterprises and professional syndicates continues, and enforcement pressure has increased rather than eased.
What does JoFotara check before you may issue an invoice?
The platform validates the invoice and returns the official QR code before it may be issued, so the system needs a blocking clearance step with queue and retry handling rather than an after-the-fact report. Income, sales, simplified and credit invoices each map to the Income and Sales Tax Department's UBL 2.1 schema, where a near-miss on a field is a rejection rather than a warning.
Why does the three-decimal Jordanian dinar break imported systems?
The dinar divides into 1,000 fils, so amounts carry three decimal places. Most global ERPs assume two, and rounding line tax at two decimals produces filed totals that drift from what the ISTD computes — a defect that only shows up at scale. Tax is calculated here per line at the correct precision.
What sales tax rates apply in Jordan?
General sales tax at 16% sits alongside 1, 2, 4, 5, 10 and 24% categories, plus zero rating by location for Aqaba, free zones and development areas. That makes the rate a function of the item and the place, not a single field on the company record.
Who has to withhold on professional services in Jordan?
Payers withhold 5% on services from resident individuals and civil companies — doctors, lawyers, engineers, auditors, consultants and brokers. That has to happen at the moment the payable is booked rather than being reconstructed at year end.
Rates, regimes and deadlines in this summary change, and many countries are actively legislating on e-invoicing. This is general information, not tax or legal advice — confirm the current position with the authority named above or with your tax adviser before you rely on it.
Markets
Modules
Free tools
Talk to us about your business
Tell us what you run and we will come back with a straight answer about fit, timeline and price.