Jordan launches its National Electronic Invoicing System

Jordan is preparing for the widespread adoption of electronic invoicing. The ISTD (Income and Sales Tax Department) has launched its national electronic invoicing solution with the goal of gradual adoption among companies. The project is carried out in collaboration with the Ministry of Digital Economy and Entrepreneurship (MDEE).

The objective is to create a national electronic invoicing solution that facilitates the tax authority in gathering information and transparency in purchase and sales transactions. The system will be presented as an accessible tool for different users to facilitate its widespread adoption.

The system involves sending electronic invoices to the national platform and managing data and information related to purchase and sales operations. The ISTD has published a guide on how to join the platform.

Currently, the use of electronic invoicing is optional, but the government strongly encourages companies to participate in the system as a measure to prevent unethical practices. At EDICOM, we can connect your company to the Jordanian platform and ensure a seamless integration of your systems with the national platform.

Jordan’s Digitalization Challenges

In Jordan, it has been mandatory to issue invoices for the sale of goods since July 2019. However, there is no harmonized invoicing system, making accountability and data interchange between companies complicated.

The Income and Sales Tax Department (ISTD) has committed itself to solving these challenges and will mandate the issuance of electronic invoices to taxpayers who must issue invoices. They will also have to report them to the tax authority.

Currently, Jordan lacks an electronic invoicing system. To begin the implementation process the MDEE has published the characteristics and requisites of a national electronic invoicing system through its Request for Proposal (RFP) document.

The requisites and characteristics of the invoicing system describe the user type, the interface, the type of system to manage the invoice, or the different processes: issuance, reception, validation, delivery, storage, digital signature solution for the invoice, etc.

The electronic invoicing system must guarantee the following aspects:

• Control and prevention of fiscal fraud and tax evasión.
• Cost efficiency pertaining to paper usage.
• Accessibility to the tool through different interfaces like Smartphones and an online platform.
• Ease of implementation to accomplish a more widespread adoption by companies and taxpayers.
• User experience through different interfaces.

According to information in the “Electronic Government Development Index” provided by the JSF, the country finds itself in a very low position compared to other UN member states. The “Electronic Government Development Index” is derived from the EGDI indicator created by the United Nations. It measures the reach and quality of online services, connectivity of telecommunications, and human capital.

The JSF report recommends improving security pertaining to electronic data interchange and the security level of the platforms used to perform those transactions.

The government is expected to publish an implementation timeline and the technical requisites for taxpayers to comply this year.