e-Invoicing in Jordan: Timeline, Guidelines, Process, and Steps for Implementation

Jordan has started it journey towards digital transformation with the implementation of e-Invoicing under the Jordan National E-Invoicing System (JoFotara). The e-invoice system was officially launched in December 2022, with businesses undergoing a phased integration process.

 The Income and Sales Tax Department (ISTD) under the Ministry of Finance is the governing authority responsible for the rollout and compliance of e-Invoicing. Currently, businesses are being urged to complete their registration and integration, with mandatory compliance notices issued to taxpayers in October 2024.
Jordan’s e-Invoicing system mandates that invoices are generated in a structured XML/JSON format, encrypted, and validated through JoFotara, which assigns a QR code for authentication. 

This blog provides a comprehensive guide to Jordan’s e-Invoicing system, covering its timeline, implementation process, scope compliance requirements, benefits, and how businesses can transition smoothly to avoid penalties.

What is e-Invoicing in Jordan?

e-Invoicing in Jordan refers to the digital generation, authentication, and exchange of invoices via the JoFotara system. It applies to B2B, B2C, and B2G transactions and ensures that invoices are issued in a structured electronic format (XML/JSON) with a QR code for validation.

e-Invoice Implementation Timeline

The implementation of Jordan’s e-Invoicing system follows a phased approach:

e-Invoicing Process in Jordan

The e-Invoicing process involves the following key steps:

1. Invoice Generation: Businesses generate invoices in XML format and encrypt them into JSON using their system or an e-Invoicing solution.
2. Submission to the JoFotara System: The supplier submits the invoice to Jordan's National e-Invoicing System (JoFotara).
3. Validation & QR Code Generation: JoFotara validates the invoice and, if compliant, adds a QR code to it.
4. Invoice Sharing with the Buyer: The validated invoice is shared with the buyer in digital format.

e-Invoicing Compliance Guidelines

The Income and Sales Tax Department (ISTD) has established the following compliance requirements:

• Invoice Format: XML/JSON format in accordance with UPL 2.1 standards.
• QR Code Requirement: All invoices must include a QR code for verification.
• Integration: Businesses must integrate their ERP or POS systems with JoFotara.
• Archiving: Businesses must store electronic invoices securely for audit and tax compliance.
• Threshold: Purchaser details are not required if the invoice value is below JOD 10,000.

Types of e-Invoices in Jordan

Jordan's e-Invoicing system supports two main types of invoices:

1. Cash Invoices – Used for immediate transactions where payment is made at the time of purchase.
2. Receivable Invoices – Issued when the payment is deferred (credit-based transactions).

e-Invoicing Model and Framework

Jordan's e-Invoicing model follows an integration-based framework, enabling:

• Automation & Integration with existing ERP & invoicing systems.
• QR Code Generation for verification.
• Real-time Validation via the JoFotara platform.
• Tax Compliance & Reporting through structured digital invoicing.

Who Needs to Comply with e-Invoicing in Jordan?

The ISTD mandates e-Invoicing for:

• All VAT-registered businesses.
• Companies using manual, traditional, or electronic invoicing systems.
• Suppliers dealing with government agencies (B2G transactions).
• Retailers, wholesalers, and service providers issuing invoices.

Benefits of e-Invoicing in Jordan

• Increased Efficiency: Eliminates manual errors and speeds up invoicing.
• Cost Savings: Reduces paper-based costs and administrative burden.
• Faster Invoice Processing: Enhances cash flow management for businesses.
• Improved Compliance: Ensures accurate tax reporting and prevents fraud.
• Seamless Auditing: Facilitates real-time invoice tracking and reconciliation.

How Can ClearTax Help with e-Invoicing in Jordan?

ClearTax, a leading e-Invoicing solution provider, helps businesses comply with Jordan's e-Invoicing mandate through:

• Seamless ERP & POS Integration – Automates invoice generation & validation.
• Real-time Compliance Checks – Ensures every invoice meets JoFotara standards.
• Cloud-Based e-Invoicing Portal – Enables tracking, reconciliation, and management.
• Automated Reporting & Compliance Alerts – Prevents penalties due to non-compliance.

Government Resources for e-Invoicing in Jordan

• Procedures Manual for Organizing the Invoice
• Procedure Manual for Linking to the e-Invoicing System
• Procedure Manual for Joining the e-Invoicing System

Conclusion

Jordan's transition to e-Invoicing is a game-changer for businesses, ensuring compliance, efficiency, and transparency. Businesses should immediately register, integrate, and test their systems for a smooth transition. With the right e-Invoicing solution provider like ClearTax, businesses can automate compliance, streamline invoicing, and avoid penalties.