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E-Invoicing in Jordan: A Complete Overview
Category: Updates and Press Releases, Posted on: 20/01/2024 , Posted By: Webtel
Visitor Count:74

Jordan has taken a significant step towards modernizing its tax system with the launch of the Electronic National Invoicing System. The Institute of Standards and Taxation Development (ISTD) initiated this system, aiming to streamline tax processes, facilitate compliance, and enhance transparency.

Objectives of the Electronic National Invoicing System:

1. Government Commitment to Tax Payers: The system is designed to align with the government's commitment not to impose or increase taxes, focusing instead on facilitating taxpayers across all sectors. Emphasis on achieving voluntary commitment, regulating taxpayer relationships, and ensuring access to tax services, including timely refunds.

2. Sales Tax Law Amendment: Recent amendments to the sales tax law aim to expedite private sector refunds and reduce legal processing periods. Anticipation of qualitative technological transfers to further benefit citizens and expedite refund processes.

3. Promoting Justice and Efficiency: The system is positioned to ensure justice in law application, reduce costs for taxpayers, and expedite transaction procedures. Minister Al-Issis encouraged companies, institutions, and establishments to swiftly join the national invoicing system for mutual benefits and service to the national economy.

Implementation and Collaboration:

The system was implemented by Jordanian experts in collaboration with the Ministry of Digital Economy and the Income and Sales Tax Department. Minister Al-Hananda emphasized the continuous cooperation between the Ministry of Digital Economy and the Tax Department to align practices with international standards.

1. Flexibility and Inclusivity: The national invoicing system allows all companies and establishments to join, irrespective of their current invoicing or financial systems. Flexibility to accommodate both those with computerized systems and those without, ensuring inclusivity.

2. Consumer and Seller Benefits: The system aims to serve consumers by ensuring regular invoicing for purchased goods or services. The burden of proof shifts from taxpayers to the department, simplifying and expediting tax file audits.

3. Electronic Invoicing Platform: An e-invoicing platform facilitates invoice issuance for taxpayers with or without existing invoicing systems. The platform provides various means for submitting invoices to the tax office, including a web portal, mobile applications, and API.

Conclusion:

The launch of Jordan's Electronic National Invoicing System signifies a pivotal moment in the country's taxation landscape. With a focus on transparency, efficiency, and taxpayer facilitation, this initiative is poised to reshape the tax culture and strengthen the government's commitment to its citizens.

As companies and establishments embrace this technology, Jordan anticipates reaping the benefits of a streamlined, modern tax system that fosters economic growth and compliance.


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