The rate
The standard rate in Jordan is 16%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
Jordan's consumption tax is general sales tax, not VAT, and the standard rate is 16%. Three registration thresholds are in force at once and they differ by activity: 75,000 JOD for suppliers of goods not subject to special sales tax, 30,000 JOD for suppliers of services, and 10,000 JOD for manufacturers of goods that are. Where someone does several of these the lowest applicable figure governs. There is no threshold for importers. Reduced rates of 2%, 4%, 5% and 10% apply to scheduled goods, and exports and free zones are zero-rated.
Filing and paying
Registered and filed with Income and Sales Tax Department (ISTD).
Bimonthly, which is Jordan's pattern rather than monthly or quarterly: article 16 treats two months as a single tax period. A business subject to the special sales tax files monthly instead. The return and the payment are both due within one month of the end of the period, so January and February fall due on 31 March. Filing is electronic through the Electronic Gate and payment runs through eFawateercom.
Penalties for getting it wrong
Late registration within 60 days and late filing are misdemeanours carrying 100 to 500 JOD, payable within 30 days and appealable to the Minister. Past 60 days the heavier offence provisions apply. Late payment costs 0.4% of the liability for each week or part week. Evasion carries compensation of 200% to 300% of the tax plus a fine. An invoice not issued through JoFotara is not a valid deductible expense.