Required certification · Jordan
Income and Sales Tax Department (ISTD)
Jordan's tax authority: income tax, 16% general sales tax and the JoFotara e-invoicing system
Market position
The Income and Sales Tax Department, under the Ministry of Finance, administers Income Tax Law No. 34 of 2014 and General Sales Tax Law No. 6 of 1994; it was formed by merging the income tax and sales tax departments on 16 August 2004. It handles tax registration, returns and payments, which can be paid through eFawateercom, and says it offered 70 e-services in 2025. It also runs JoFotara, the national electronic invoicing system.
Jordan-specific note
ISTD's invoicing regulation, as amended in 2023, recognises electronic invoices issued through the national JoFotara system or through software linked to it, and Jordanian press reported that use of the system became mandatory from the start of April 2025. Contractors issuing invoices should confirm that their accounting software is linked to JoFotara.
Pros
- + Registration, returns and payments can be handled online
- + JoFotara registration and invoicing through a web portal or the Fawatiri app
- + Tax bills can be paid through eFawateercom
- + Published laws, rate schedules and FAQs
Cons
- − General sales tax registration becomes mandatory once sales pass thresholds that differ for goods and services
- − Invoices must be issued through JoFotara or software linked to it, which may need new invoicing software
- − Late sales tax payment is fined four per thousand of the tax due for each week of delay, per ISTD's sales tax FAQ
- − Most guidance documents are in Arabic
Typical Jordan pricing
Government authority: general sales tax is 16% under Law No. 6 of 1994, with reduced, zero and exempt rates for listed goods and services; income tax at the statutory rates. No registration fee is shown on the ISTD pages read.
Why this matters for Jordan trades
The ISTD administers income tax, 16% general sales tax and the JoFotara e-invoicing system, so contractors issuing invoices should confirm that their accounting software is linked to JoFotara. Under the Construction Contractors Law, no one may practise contracting without registering with the JCCA, and no ministry, municipality, public shareholding company or other entity may sign a works contract with a contractor who is not registered and classified; the Government Tenders Department manages contractor licensing and classification and publishes the Contractor Classification Instructions of 2020. Engineering studies and designs may be prepared only by offices registered with the JEA, companies register with the Companies Control Department (CCD), and employers pay Social Security Corporation contributions of 14.25% of insured wages, with 7.5% from the employee, according to PwC’s tax summary.
Jordanian construction and trades software selection is shaped by JoFotara, the national e-invoicing system run by the Income and Sales Tax Department (ISTD): its invoicing regulation recognises e-invoices issued through JoFotara or software linked to it, and Jordanian press reported that use of the system became mandatory from the start of April 2025. Add 16% general sales tax, Social Security Corporation contributions on insured wages, registration and classification with the Jordan Construction Contractors Association (JCCA) for works contracts, and Jordan Engineers Association (JEA) registration for engineering work.
Frequently asked
Is Income and Sales Tax Department (ISTD) a good fit for Jordan trades?
The Income and Sales Tax Department, under the Ministry of Finance, administers Income Tax Law No. 34 of 2014 and General Sales Tax Law No. 6 of 1994; it was formed by merging the income tax and sales tax departments on 16 August 2004. It handles tax registration, returns and payments, which can be paid through eFawateercom, and says it offered 70 e-services in 2025. It also runs JoFotara, the national electronic invoicing system. ISTD's invoicing regulation, as amended in 2023, recognises electronic invoices issued through the national JoFotara system or through software linked to it, and Jordanian press reported that use of the system became mandatory from the start of April 2025. Contractors issuing invoices should confirm that their accounting software is linked to JoFotara.
What does Income and Sales Tax Department (ISTD) cost in Jordan?
Government authority: general sales tax is 16% under Law No. 6 of 1994, with reduced, zero and exempt rates for listed goods and services; income tax at the statutory rates. No registration fee is shown on the ISTD pages read. Pricing and availability can change by region; confirm current Jordan pricing on the vendor's site before committing.