The National E-invoicing System in Jordan
Connecting to Jofotara as part of the mandatory implementation of the National Invoicing System in Jordan, has become a vital step for every company seeking to achieve tax compliance and avoid legal penalties. This national system aims at its core to regulate invoicing processes, enhance transparency, and ensure organized, direct data exchange with The Income and Sales Tax Department (ISTD), all in an electronic way.
In this guide, we provide a practical and simplified explanation of the National Invoicing System (Jofotara) in Jordan, the mechanism for integration, the steps required for companies to join seamlessly, and the role of solution providers like InvoiceQ in facilitating this process.
What is The National Invoicing System (Jofotara)?
The National Invoicing System is an electronic platform launched by The Income and Sales Tax Department to manage tax invoices issued by companies in Jordan. The system relies on creating electronic invoices according to a specific data format that is sent directly to the national platform, ensuring:
- Standardization of invoice formats and content.
- Reduction of human errors.
- Elevation of tax compliance levels.
- Improvement of oversight and transparency.
In other words, The National Invoicing System (Jofotara) serves as the primary framework upon which companies and any other integrating systems in Jordan rely.
Who is Mandated To Integrate with The National E-invoicing System?
Any business owner or professional in Jordan is required to implement electronic invoicing, regardless of the nature of their activity, with the exception of some exempted categories under the approved regulations. The Tax Identification Number (TIN) is the primary requirement for registering with the National E-Invoicing System or for using any system that connects with it, such as InvoiceQ, to issue compliant tax invoices.
Although some taxpayers are classified in exempted categories, they might still need to issue an electronic invoice if requested by a buyer. In such cases, the invoice becomes a condition for finalizing the sale, even if no fines or penalties are imposed on the exempted party.
Consequently, registering with the National E-invoicing System and adopting a compatible E-invoicing system in Jordan is a practical step to ensure businesses’ continuity and meeting the market requirements even for exempted categories.
Steps To Integrate with The National E-invoicing System
The Income and Sales Tax Department (ISTD) outlines the steps for direct integration with the National Electronic Invoicing System in its official guide published. This process involves a series of essential steps that taxpayers must follow:
1. Log in to The National E-invoicing System Portal
The taxpayer logs into the National E-invoicing System using their authorized login credentials via the official website of the Income and Sales Tax Department. Once logged in, they must select the specific integration service dedicated to the invoicing system.
2. Enter The Required Data
Upon selecting the option to integrate with the National Electronic Invoicing System, the user is redirected to the following page to enter the essential basic information required to proceed with the process.
3. Linking EGS Devices
The user clicks on the “Integrate Device” option as shown and then selects the “Link A New Device”.
4. Entering Integration Data
The user enters the username and the income source sequence number, then clicks the “Add” option to proceed with generating the required integration credentials.
5. Using Integration Data for System Configuration
In this step, the Username and Secret Key are generated. These can be copied directly using the “Copy” button shown in the interface, to be used later when configuring the connection between your internal system and the National E-invoicing System.
Following these steps, the Username and Secret Key are implemented within the API Header. The electronic invoice is then transmitted in XML format, ensuring the data is encrypted and fully compliant with the UBL 2.1 standard. This data is sent to the specific endpoint (URL) designated by the Income and Sales Tax Department.
6. Electronic Invoice Issuance
Once the setup is successfully completed, the taxpayer is officially ready to issue electronic invoices. These invoices are transmitted directly to the National E-invoicing System (Jofotara) in real-time, adhering to all approved regulatory and technical requirements.
Challenges Companies Face During Integration
Despite the clarity of the steps involved, many companies encounter several challenges during the implementation process, such as:
- Complexity of technical requirements
- Errors in EGS system configuration
- Issues with digital signature implementation
- Difficulty working with API integrations
- Lack of in-house technical expertise
This is where relying on a trusted e-invoicing solution provider like InvoiceQ becomes important.
How Does InvoiceQ Help Companies Connect To The National E-invoicing System in Jordan?
InvoiceQ provides comprehensive solutions for companies looking for an E-invoicing system in Jordan that is fully compliant with Jofotara requirements, as it:
- Manages the integration process from start to finish.
- Integrates with ERP, POS, and accounting systems.
- Handles all technical and security requirements.
- Validates invoices automatically before transmission.
- Ensures direct and immediate transmission to the National E-invoicing System.
As a result, companies can focus on their core business without worrying about technical details or regulatory risks.
Integration Methods with the National E-invoicing System in Jordan
The National E-Invoicing System in Jordan provides taxpayers with more than one integration option, giving them the flexibility to choose the method that best suits the nature of their business and the systems they use. Integration can be implemented through one of the following methods:
1. Direct Integration with the National E-Invoicing System
Taxpayers can issue electronic invoices directly through the National E-Invoicing System by following the technical steps and guidelines announced by the Income and Sales Tax Department (ISTD) in the official user manual, without the need to use any external systems.
Although this option achieves the minimum level of compliance, it may require ongoing technical follow-up, especially when updates are introduced or regulatory requirements change.
2. Integration via Service Provider such as InvoiceQ
Integration through an approved service provider is a practical option for companies seeking a smoother and more stable experience, especially when they already have existing accounting or ERP systems, or when there is a need to automate processes.
This option includes:
- API Integration:
This allows ERP systems, accounting systems, or Point of Sale (POS) systems to be connected directly to the National E-invoicing System without the need to change the existing system, thereby reducing complexity and minimizing the operational risks associated with system replacement.
- Using InvoiceQ’s Online Portal To Send and Receive Invoices:
If the taxpayer does not have an internal system, InvoiceQ can be used as a fully integrated E-invoicing system, providing automatic compliance for every issued or received invoice, with full alignment to the requirements of the National E-invoicing System in Jordan.
The key advantage of this option lies in the fact that the service provider handles the technical aspects and regulatory updates, allowing taxpayers to focus on their core business activities without being burdened by technical details or ongoing integration requirements.
Benefits of Early Integration with Jofotara
- Avoiding fines and penalties
- Full readiness before mandatory deadlines
- Improving the efficiency of financial operations
- Reducing manual errors
- Building greater trust with official authorities
Conclusion
Integrating with the National E-Invoicing System (JoFotara) is a pivotal step for every company operating in Jordan. With the mandatory shift toward E-invoicing, choosing a compliant and approved E-invoicing system in Jordan has become an essential requirement.
