Jordan Prepares Phase 2 of the JoFotara Electronic Invoicing System
The ISTD has announced the issuance of the legal framework to commence the implementation of Phase 2 of the JoFotara electronic invoicing system.
Under this amendment, the second phase, effective April 1, 2025, mandates that all goods and services must have an original, tax-compliant invoice to qualify as deductible tax expenses.
Jordan is preparing for the mass adoption of electronic invoicing through the national JoFotara system. This initiative is led by the Income and Sales Tax Department (ISTD) and 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 promote its widespread adoption.
The Income and Sales Tax Department (ISTD) of the Jordanian Ministry of Finance has set the end of May 2024 as the deadline for registering with the national electronic invoicing system, JoFotara. Any company established in Jordan that has not registered by this date may face penalties.
The Jordanian Ministry of Finance has also restricted B2G (Business-to-Government) transactions to companies registered on the JoFotara portal. Private companies are encouraged to ensure their business partners comply with Jordan’s e-invoicing mandate.
Phase 2 Requirements for Electronic Invoicing in Jordan
The effective date for Phase 2 for individuals, companies, and organizations is April 1, 2025. With this date, the legal framework of Phase 2 of electronic invoicing is considered official following the issuance of Modified Billing and Control Regulation No. 2 of 2025.
This amendment requires all invoices to be original and compliant with electronic invoicing requirements. Invoices must be issued through the National Electronic Invoicing System or any system integrated with it. Any invoice that does meet these standards will not be valid for financial transactions.
How does the JoFotara portal work?
The system allows the submission of electronic invoices to the national platform and manages data and information related to sales and purchase transactions.
Once an invoice is declared through the JoFotara portal, the ISTD issues a QR code that must be embedded in the final invoice.
This QR code can be scanned to verify that invoices are declared before payments are issued.
At EDICOM, we can help you connect to the Jordanian platform and integrate your systems with the JoFotara national platform. Our solution complies with ISTD regulations and fully integrates with the JoFotara portal.
Although electronic invoicing is not mandatory, the government encourages companies to adopt the system to avoid bad practices.
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.
