Tax rate by region Jordan

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Jordan applies a standard 16% General Sales Tax (GST)—operating similarly to a traditional VAT framework—which is administered by the Income and Sales Tax Department (ISTD). Under rules established via a dedicated e-commerce compliance portal, non-resident providers of digital products and electronic services to Jordanian consumers are required to register and account for GST regardless of local monetary thresholds. Compliance follows a bi-monthly reporting cycle, and domestic taxpayers must integrate with the JoFotara national electronic invoicing system, which became fully mandatory for all business sectors under a phased clearance model.

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Jordan

Jordan applies a General Sales Tax (GST), similar in operation to VAT, at a standard rate of 16%. A special rate of 24% applies to certain telecommunications services. Foreign providers of digital services to Jordanian consumers use a dedicated online compliance portal launched in early 2024.

Official government link: Income and Sales Tax Department (ISTD)

16.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes (general GST reverse charge for imported services per Jordan GST Act)

Tax ID validation required

Yes

When do you have to register

After exceeding JOD 30,000 for services in annual sales

Online registration possible

Yes (special foreign digital services portal launched early 2024 via ISTD)

Local representative needed

Not mandatory 

Registration procedure

Foreign digital providers: special compliance portal via ISTD; resident businesses register via standard ISTD process

List of digital and electronic services liable for tax

Foreign digital services 

Penalties

Late filing penalties per ISTD;

corporate income tax late-filing penalty JOD 1,000 (shareholding companies) / JOD 300 (other entities) — GCT-specific penalties per ISTD schedule

Registration threshold

JOD 30.000 in annual sales

Filing interval

Bi-monthly

Filing deadline

Per ISTD schedule (every two months)

E-invoicing requirements

Yes 

Record keeping

4 years

How-To Guides: Jordan's SaaS VAT

Step: 1 Threshold

Jordan’s taxation of digital services is based on the General Sales Tax Law No. (6) of 1994, as amended (including updates through 2023). Income and Sales Tax Department (ISTD) introduced an administrative e-commerce framework and online registration portal for non-resident digital service providers in 2024, enabling foreign suppliers to register, file, and remit GST on digital transactions in Jordan.

 

The mandatory registration threshold for the service sector is JOD 30,000 in a 12-month period. Non-resident digital service providers exceeding this must register.

Step: 2 Business Registration

Non-residents without a local branch can register via the ISTD E-Commerce Platform. Local incorporation is not required for SaaS providers selling remotely.

Step: 3 TIN/VAT Number

Registered entities receive a Tax Identification Number (TIN) from the ISTD.

Step: 1 Standard Rate

The standard General Consumption Tax (GCT) rate is 16%

Step: 2 Rate Formula

To calculate your tax amounts, please use the following formula:

 

Tax Amount = Net Price x 16% 

Step: 3 Reverse Charge (B2B)

Applies. When selling to a GST-registered business in Jordan, the Reverse Charge Mechanism (RCM) shifts the tax liability to the buyer. The seller does not collect the 16% GST if the buyer provides a valid TIN.a

Step: 1 Selling B2C

The seller must charge 16% GST at the point of sale and remit it to the ISTD.

Step: 2 Selling B2B

GST is generally not charged by the foreign seller; the Jordanian business customer accounts for it via RCM. You must verify the buyer’s TIN.

Step: 3 Invoice Requirements

Mandatory fields:
1) Supplier Name & Address
2) Supplier TIN
3) Sequential Invoice Number
4) Date of Issue
5) Description of Services (SaaS)
6) Buyer Name & TIN (for B2B)
7) Total Amount, and 8) GST Amount/Rate.

 

Note: Jordan’s JoFotara e-invoicing mandate (2025) requires digital transmission/validation for local entities.

Step: 1 Filing Interval

Taxes are filed monthly generally Bi-monthly (every two months) for GST.

Step: 2 Filing Deadline

The filing deadline is within one month following the end of the tax period (e.g., Jan-Feb period is due by March 31).

Step: 3 Submission

File through the ISTD E-Commerce Portal. Payments are typically made via eFAWATEERcom or bank transfer using IBAN.

Step: 4 Record Keeping

Records must be kept for at least 4 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Jordan’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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