Managing Invoices Through E-Invoicing System in Jordan
As part of the global shift toward E-invoicing, The Income and Sales Tax Department in Jordan
made the strategic decision to implement E-invoicing. This transformation was put into practice through what has been defined as The National E-Invoicing System, overseen by ISTD.
The National E-invoicing System is now made the standard for issuing sales and purchase invoices. Thus, tax compliance between sellers and buyers has become crucial especially to reclaiming tax refunds among other benefits. E-invoicing in Jordan offers a range of benefits for businesses across all sectors, encouraging them to adopt an E-invoicing system to comply with ISTD.
What is The National E-Invoicing System?
The National E-Invoicing System is an E-invoicing system launched by The Income and Sales Tax Department aimed at digitizing and unifying invoicing processes across Jordan. The system provides a standardized mechanism for managing local sales and purchase invoices, with the goal of improving tax compliance, limiting tax evasion, as well as ensuring fairness and transparency in taxation for all mandated sectors (excluding exempt categories).
That said, The National E-invoicing System is more than just a regulatory framework; it is a powerful tool for enhancing financial management and enabling businesses to operate according to a unified legal and financial structure.
Phased Implementation of The E-Invoicing System in Jordan
The Income and Sales Tax Department – has so far – outlined two phases for E-invoicing in Jordan. The phases included sales and purchase invoices, and a clear definition of the mandated and exempt taxpayers. Businesses are required to issue official tax invoices through the National E-Invoicing System or any system that integrates with it.
The deadline as previously published by the ISTD for phase two was by April 1, 2025. This pushes the need for businesses included in this scope to integrate faster with The National E-invoicing System.
What Are The Key Benefits of Using E-Invoices for Businesses?
1. Full Compliance with The National E-Invoicing Regulations
By using an integrated E-invoicing system, companies can ensure full compliance with the latest requirements of The Income and Sales Tax Department, helping them avoid penalties due to non-compliance.
2. Reduced Operational Costs
Switching to E-invoicing significantly reduces dependency on paper-based processes. It eliminates repetitive tasks or steps and centralizes invoice management through one key system, such as InvoiceQ, which allows immediate issuance of fully compliant tax invoices with ISTD.
3. Enhanced Transparency and Control
E-invoicing systems allow for real-time tracking of every transaction and associated invoice. This facilitates invoice matching, internal auditing, and enables decision-makers to work with accurate, real-time data.
4. Keeping Up with Global E-Payment Trends
With the global shift toward E-solutions in finance, implementing an E-invoicing system in Jordan helps in positioning businesses to align with the evolving international practices in payments and E-invoicing making regional or even global expansion easier to achieve.
Challenges Businesses May Face When Integrating with The National E-invoicing System
Some businesses may hesitate to make the decision of transitioning to E-invoicing due to limited technical know-how or concerns about system complexity. That’s why it’s essential to choose an E-invoicing system that is user-friendly and offers continuous technical support.
A qualified E-invoicing provider can handle the integration process seamlessly without requiring changes to the accounting system and without causing performance issues; especially for large enterprises with high invoice volumes.
InvoiceQ: Your Ideal Solution for E-invoicing in Jordan
InvoiceQ is the ideal solution for businesses looking to integrate with the National E-Invoicing System in Jordan as it offers a simple intuitive interface, full compliance with the latest tax updates, and the flexibility to adapt to various business needs.
InvoiceQ’s Key Features Include:
- Issuing and receiving ISTD-approved E-invoices.
- Direct integration with the National E-Invoicing System.
- Seamless compatibility with local and international accounting/ERP systems.
- Ongoing technical support.
- Suitable for businesses across all sectors.
E-invoicing: A Necessity Not A Option
Adopting an E-invoicing system is a smart investment; it ensures legal compliance, saves time & resources, and streamlines business operations. With E-invoicing systems like InvoiceQ, the shift to digital invoicing has never been easier. Start today and book a free demo with our expert team.
