Jordan E-Invoicing Revolution: Everything You Need to Know About JoFotara

Jordan is undergoing a major digital transformation with the rollout of JoFotara, the national e-invoicing platform. Spearheaded by the Income and Sales Tax Department (ISTD) and the Ministry of Digital Economy and Entrepreneurship (MDEE), this initiative is central to efforts aimed at enhancing transparency, improving tax compliance, and digitizing business transactions across the country. As of April 1, 2025, Jordan e-invoicing through JoFotara is mandatory for all B2B, B2C, and B2G transactions. Businesses are now required to issue electronic invoices in a structured format, validated by ISTD, to ensure they are tax-deductible and legally recognized. What Is JoFotara? JoFotara is Jordan’s centralized platform for issuing, validating, and storing electronic invoices. When a business issues an invoice, it is submitted to the Jordan e-invoicing system for validation. Once approved, the platform generates a unique QR code, confirming the invoice’s authenticity. Invoices not validated through the official e-invoicing platform are not eligible for tax deductions and are considered non-compliant under Jordanian law. Key Milestones in Jordan’s E-Invoicing Rollout Date Milestone December 2022 Launch of the JoFotara e-invoicing software January 2023 Start of voluntary registration and system preparation February 2023 Integration phase begins; businesses align with JoFotara October 2024 ISTD sends mandatory registration and integration notices April 1, 2025 Phase 2 begins – Jordan e-invoicing becomes mandatory How JoFotara Works Invoice Creation: Businesses generate invoices in XML or JSON format using their internal systems. Encryption & Submission: Invoices are encrypted and submitted to JoFotara for validation. Validation: ISTD verifies the invoice and issues a QR code. Delivery: The validated invoice is sent to the buyer electronically. Archiving: Validated invoices are stored securely as part of Jordan e-invoicing compliance. Who Must Comply? All VAT-registered businesses Wholesalers, retailers, and service providers Independent professionals and consultants Companies supplying to government entities (B2G) Non-compliance penalties: Fines up to JOD 500 per violation Loss of VAT deduction rights Disqualification from public tenders E-Invoicing Compliance Requirements To comply with Jordan e-invoicing, businesses must: Generate invoices in XML/JSON format Include a QR code from JoFotara Integrate their ERP/POS with the e-invoicing software Archive invoices as per ISTD standards Omit buyer details for transactions under JOD 10,000 Invoice Types Covered JoFotara supports both: Cash Invoices: Paid at the time of sale Receivable Invoices: For deferred payment Both invoice types must go through e-invoicing validation. Purpose Behind Jordan’s E-Invoicing Initiative The JoFotara platform supports the government’s objectives to: Minimize tax fraud Reduce paper usage Strengthen audits and traceability Improve revenue monitoring Promote transparent comme