- Launch of JoFotara System: As of September 25, 2024, Jordan is preparing to implement the JoFotara electronic invoicing mandate, overseen by the Income and Sales Tax Department (ISTD) in collaboration with the Ministry of Digital Economy and Entrepreneurship (MDEE), aimed at enhancing transparency in sales and purchase transactions.
- Objectives and Compliance Deadline: The JoFotara system aims to provide a national electronic invoicing solution that facilitates efficient information gathering for tax authorities. Companies operating in Jordan must register by May 2024 to avoid penalties, particularly since B2G transactions will only be allowed for registered entities.
- Operation of the JoFotara Portal: Users can send electronic invoices through the JoFotara portal to a centralized national platform. After submission, a QR code is generated by the ISTD to be included on invoices, serving as a verification mechanism to confirm that invoices have been declared.
- Addressing Digitalization Challenges: Although Jordan has mandated invoicing for goods since July 2019, the lack of a unified invoicing system has hindered accountability. The ISTD aims to combat these challenges by enforcing electronic invoicing for taxpayers, thus improving data exchange and tax reporting.
- Call for Improvement: Jordan ranks low on the “Electronic Government Development Index,” prompting recommendations for enhanced security measures in electronic transactions. The government plans to release an implementation timeline and technical requirements to ensure compliance, making the JoFotara system a critical advancement in modernizing Jordan’s tax landscape.
Source Comarch
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