Sales tax Calculator Jordan (16%)

The 16% general sales tax rate is the only rate in the statute (Article 6(a) of Law No. 6 of 1994). Every other treatment comes from schedules that the Council of Ministers issues and may change by decision, adding, removing or moving items between them (Article 3(b) and (c)). Check the current ISTD schedules page before pricing, because a Cabinet decision can move a product between schedules.

Zero rate (Schedule 2, replaced by Cabinet Decision 5818 in force from 17 January 2018) covers meat other than the items taxed at 10%, fish other than heading 03039, petroleum oils and gases, foods made specially for infants and for special medical conditions, veterinary medicines and vaccines, and agricultural fertilisers. Article 7(a) also zero-rates sales to the bodies exempt under Article 21, such as embassies and international organisations. Exempt goods (Schedule 3) include fresh and chilled chicken, fresh milk in packs up to 5 kg, pulses, wheat and wheat flour, bread, refined sugar other than cane sugar, water other than packs of five litres and above, and electricity. Exempt services include education, health and social work, land, water and air transport, financial intermediation other than insurance, buying and selling land and buildings, letting real estate, and construction under a contract certified by the Jordanian Contractors Association.

ISTD also publishes reduced-rate statements at 2%, 4%, 5% and 10%. The 2% list holds school bags, notebooks, school uniforms and fresh vegetables such as cabbage, peas, okra, peppers and spinach. The 4% list holds fresh fish and vegetable oils and ghee; vegetable oils were set at zero only from 29 March 2022 to the end of November 2022. The 5% list holds items such as pears, strained yoghurt and fresh curd cheese, and the 10% list holds live animals, poultry meat, butter, cheeses and eggs. A zero-rated or exempt item sold together with a taxable one is taxed at 16% (Article 7(c)), and Article 17 adds the tax on top of the price even for goods whose prices are fixed by the state.