Hatice Ozcan
Feb 5, 2025
Jordan Advances to Phase 2 of the JoFotara E-Invoicing System
The Jordanian Income and Sales Tax Department (ISTD) has announced the launch of Phase 2 of its JoFotara electronic invoicing system, reinforcing tax compliance regulations for businesses operating in Jordan.
Effective April 1, 2025, this phase mandates that all goods and services transactions require a tax-compliant electronic invoice to qualify as deductible expenses. This expansion follows an amendment to the current billing regulations, expected to be formally published soon.
One of the key changes under Phase 2 is the inclusion of local purchases in the National Electronic Billing System (NBS). As of April 1, 2025, invoices for locally acquired goods and services must be generated through the NBS to be considered valid for tax deduction. This shift aims to enhance supplier compliance, improve tax transparency, and ensure more accurate reporting across the Jordanian tax framework.
By integrating local purchases into the e-invoicing system, Jordan strengthens its digital tax ecosystem, ensuring that businesses adhere to stricter invoicing regulations while benefiting from increased efficiency and compliance.