Jordan Advances Tax Digitization: Second Phase of Electronic Invoicing with JoFotara
Jordan is actively expanding the use of electronic invoicing through its national system, JoFotara. This initiative is led by the Income and Sales Tax Department (ISTD) in collaboration with the Ministry of Digital Economy and Entrepreneurship (MDEE).
The objective is to create a national e-invoicing solution that facilitates the collection of transaction data and promotes transparency in sales and purchase activities.
As of April 1, 2025, the Amended Billing and Control Regulation No. 2 of 2025 is in effect. It mandates that all individuals, businesses, and organizations in Jordan must issue original electronic invoices for these to be recognized as tax-deductible expenses.
Invoices must be generated either through the JoFotara system or via technology platforms officially integrated with it. Any invoice that does not meet these conditions will be considered invalid for tax and accounting purposes.
How Does JoFotara Work?
The JoFotara system centralizes the issuance, validation, and archiving of electronic invoices. Once an invoice is generated through the portal, the ISTD issues a unique QR code that must be included in the final document. This QR code verifies that the invoice has been properly registered before payment can be processed.
The system also collects real-time data on commercial transactions, strengthening traceability and enhancing the ISTD’s auditing capabilities.
Who Is Affected?
This obligation applies to:
- All VAT-registered businesses: wholesalers, retailers, service providers, and independent professionals.
- Public sector suppliers involved in B2G (business-to-government) transactions.
The adoption of JoFotara is not optional. Businesses that do not comply may result in:
- Fines of up to 500 Jordanian dinars per violation.
- Tax restrictions: invoices not issued electronically will not be valid for VAT deductions.
- In the B2G space, only companies registered and connected to JoFotara will be allowed to participate.
Implementation Timeline
- December 2022: Official launch of the national e-invoicing system JoFotara.
- January 2023: Start of the mandatory registration phase for companies and professionals.
- February 2023: Beginning of the integration phase, requiring taxpayers to adapt their systems to the new model.
- October 2024: ISTD begins issuing notices urging taxpayers to complete registration and integration.
- April 1, 2025: Start of Phase 2, making electronic invoicing mandatory via JoFotara or integrated systems for all B2B, B2C, and B2G transactions.
Objectives of E-Invoicing in Jordan
The implementation of the JoFotara system supports several strategic goals:
- Prevent tax fraud and evasion
- Reduce operational costs related to paper use and manual processes
- Improve administrative efficiency for both businesses and the state
- Ensure multi-platform access via computers, mobile devices, and digital channels
- Promote transparency in commercial relationships
How Can EDICOM Help?
EDICOM offers a fully integrated technological solution with the JoFotara national system, designed to comply with all legal requirements for e-invoicing in Jordan.
With EDICOM, companies can:
- Issue, sign, and submit electronic invoices directly to the JoFotara portal, eliminating manual processes.
- Integrate the solution with their ERP or internal management system, avoiding duplicate tasks and administrative errors.
- Ensure full technical and legal compliance, including correct formatting, digital signatures, and validated QR codes issued by the ISTD.
- Guarantee traceability and secure archiving of all issued invoices, as required by regulations.
- Simplify the transition to the new system with expert support and extensive experience in e-invoicing projects across more than 70 countries.
EDICOM’s solution aligns with ISTD guidelines and enables companies to operate securely and in full compliance with Jordan’s tax authority requirements and deadlines.
