A Step Towards Digital Transformation
Jordan is advancing its digital transformation by implementing the JoFotara electronic invoicing system, a move aimed at enhancing tax compliance and streamlining financial transactions. The Income and Sales Tax Department (ISTD) has set a deadline of April 1, 2025, for all businesses, individuals, and organizations to issue tax-compliant electronic invoices through the JoFotara platform or integrated systems. Any invoices that do not meet these standards will be deemed invalid for financial transactions.
Understanding the JoFotara e-Invoicing System
The JoFotara system enables businesses to submit electronic invoices to the national platform, ensuring efficient management of sales and purchase data.
The ISTD issues a QR code upon invoice submission. The QR code must be embedded in the final invoice for verification before payment.
The Evolution of e-Invoicing in Jordan
Jordan first introduced the requirement for businesses to issue invoices for goods sales in 2019, but the lack of a unified system created challenges in accountability and data exchange between companies.
The JoFotara system aims to solve these issues by ensuring electronic invoices are centrally reported to the tax authority.
To accommodate businesses of all sizes, the system offers two main options:
- Direct Issuance: Businesses can generate invoices directly through the JoFotara portal.
- System Integration: Companies can integrate their existing invoicing software with JoFotara via API.
Key Features of the JoFotara e-Invoicing System
The system is designed to streamline tax compliance and includes:
- Automated Data Verification to minimize errors and fraud.
- Correction Tools allowing businesses to issue credit and debit notes for invoice modifications.
- Advanced Data Analysis to detect anomalies and improve tax reporting.
- Real-Time Submission for single invoices or bulk reporting.
- Support for International Transactions to ensure seamless cross-border invoicing.
- Tax Refund Services for foreign visitors and tourists.
Compliance Requirements
The Ministry of Finance has mandated that all Business-to-Government (B2G) transactions be conducted only through companies registered on the JoFotara portal. This means that private sector businesses should ensure their partners comply with e-Invoicing mandates to avoid disruptions in transactions.
Final Thoughts: Embracing the Future of e-Invoicing
Jordan’s phased implementation of JoFotara e-Invoicing marks a significant step toward digital transformation and improved tax compliance. Businesses are strongly encouraged to understand the system’s requirements and take early action to ensure a smooth transition, avoid penalties, and remain compliant with Jordan’s evolving tax regulations.
