Jordan is entering a pivotal phase in its digital tax transformation. As part of its ongoing efforts to modernize tax reporting and enhance fiscal transparency, the Income and Sales Tax Department (ISTD) has confirmed that Phase 2 of the National E-Invoicing System (JoFotara) will go into effect on April 1, 2025.
Under this mandate, all invoices for the sale of goods or provision of services in Jordan—across B2B, B2G, and B2C transactions—must be issued through the National Electronic Billing System or via systems directly integrated with it. Invoices that are not generated through JoFotara will not be considered valid for tax deduction purposes.
1. What is JoFotara?
JoFotara is Jordan’s centralized e-invoicing platform, developed by the ISTD to ensure real-time invoice validation, combat tax evasion, and promote digital recordkeeping. The platform is designed to:
- Facilitate immediate transmission of invoice data to the tax authority
- Ensure uniform tax documentation across sectors
- Improve audit readiness and reduce manual errors
Since its launch, JoFotara has been rolled out in phases to allow businesses to adapt their systems and processes accordingly.
2. Phase 2: April 1, 2025 Deadline
Phase 2 marks the beginning of mandatory issuance of all invoices through the JoFotara platform or integrated systems. The implications are significant:
- Mandatory Compliance: Businesses must use JoFotara to issue electronic invoices.
- Invoice Validity: Only invoices processed through the system will be recognized for tax purposes, including expense deduction.
- System Integration: Enterprises must ensure their ERP or billing systems are integrated with the JoFotara platform and comply with technical standards.
This phase is applicable to all VAT-registered businesses operating in Jordan, regardless of size or sector.
3. ISTD’s Latest Announcement
In its recent statement, the ISTD urged all taxpayers who are obligated to use the National Electronic Invoicing System to register and integrate their systems promptly. The announcement encourages affected parties to take immediate steps to align with the requirements of the e-invoicing platform and highlights the availability of technical support to ease the onboarding process.
You can read the full announcement here:
ISTD News Release – Call for Registration with the Electronic Invoicing System
5. Final Word
April 1, 2025, is not just another date on the regulatory calendar—it marks a fundamental shift in how transactions are documented and reported in Jordan. As the country embraces real-time, digital compliance, businesses must act now to modernize their invoicing processes, ensure data accuracy, and maintain tax conformity.
