E-Invoicing in Jordan: What’s The Road Like?
Building a strategy that realizes the essential need for a holistic vision capable of bringing together the worlds of technology and business has become now more than ever a key initiative that all countries should approach with no delays.
However, for this action plan to be an outcome that we can live in, smart measures should be put into practice so that no difficulties hinder individuals and organizations amidst the process. Thus, this is what’s led us in Jordan to speed up the process of involving technology in day-to-day based tasks.
This is even more so true when it comes to replacing the current invoicing process with one that is digitally based according to a well-structured plan, one that replaces traditionally paper-based invoices with electronic invoices within a scheduled time frame. That said, the ISTD officially unveiled this action plan in Jordan officially in December 2022 by following a step-by-step plan to include all organizations and businesses regardless of their size or niche.
What Motivates Jordan to Take this Step?
What led Jordan, today, to take this step is the government’s desire to ease tax services execution. As well as, enabling the private sector to manage tax transactions by setting international standards as a primary reference and accommodating Jordan’s internal regulations and laws according to these standards. Additionally, adopting an electronic invoicing system managed by the ISTD prevents tax evasion and encourages individuals to abide by the rules willingly.
Moreover, this facilitates the execution of tax procedures, managing all sales and purchases, and other privileges that businesses can benefit from once they join The National E-Invoicing System.
The biggest motivator for this step was fueled by the goal to integrate AI to automate tasks and develop systems by which all issued invoices are tracked to detect any tax evasion attempts before they happen. Which as a result sets clear standards that can be enforced without any bias or exclusions.
The biggest motivator for this step was fueled by the goal to integrate AI to automate tasks and develop systems by which all issued invoices are tracked to detect any tax evasion attempts before they happen. Which as a result sets clear standards that can be enforced without any bias or exclusions. It also ensures fair rules that allow the State Treasury to monitor commercial activities and follow up on shady business activities.
So far, the ISTD has integrated 54 tax services and is working on expanding the list of its included services until they’re all available on the digital platform.
What Does Joining the National E-Invoicing System Mean to Businesses & Organizations?
Joining the national e-invoicing system does not require any additional cost for the organization or business to pay upon joining, as ISTD has made it possible for them to register easily. Therefore, business owners have the option to integrate with ISTD or use the national invoicing platform for free if they don’t have previous systems in use. Businesses can also use our InvoiceQ system to manage the whole process and enjoy various payment gateway integration options. In addition, they can monitor, receive, and send invoices in no time.
Who is Obliged to Join?
Taxpayers to be excluded for the time being include business owners whose annual revenue does not exceed 75,000 JD. This includes groceries, bookshops & stationery stores, greengrocers, household appliances stores, traditional restaurants, dairy stores, and sewing stores. In addition, licensed craft stores whose annual revenue does not exceed 30,000 JD. Bakeries that sell bread only with annual revenue below 150,000 JD are not obliged to mandatory registration for the moment.
It’s worth mentioning that businesses with e-invoicing systems are no longer required to issue paper copies of their invoices.
What Benefits Will You Get?
Investing in an electronic invoicing system is crucial for the following reasons:
– Time-saving solutions in handling tax transactions for businesses via systems that comply with the standards in comparison with traditional methods and paper invoices.
– Better management of your finances and 24/7 backup to connect with the national e-invoicing platform supervised by trained experts to help you integrate the system correctly.
– Supporting businesses with various options to send their tax invoice to the ISTD such as the web portal, the mobile application, or API integration.
– Reducing human-based tasks as the ISTD is the first in Jordan to implement AI solutions in executing tasks which ensures higher levels of accuracy.
– All invoices are saved in a secured database to prevent any data breaches of the registered data. This means no need to worry about invoices getting lost or damaged.
– Protecting consumers’ and vendors’ rights through a joint collaboration between the Income and Sales Tax Department (ISTD) and the Ministry of Digital Economy and Entrepreneurship (MODEE).
Where is The Electronic Invoicing Headed Today?
Today, Jordan is headed to making electronic invoicing the solid base businesses and organizations rely on to manage invoices and has set a goal to cover at least 90% of the tax transactions regulated by the ISTD. So far, Jordan has succeeded in covering 60% of the transactions needed. This has enabled the ISTD to get tasks previously done within 24 hours to be done in minutes thanks to advanced electronic invoicing systems like the one we offer at InvoiceQ.
