In short: The registration threshold is measured on sales, not profit, over any twelve consecutive months: 75,000 JOD for goods and 30,000 JOD for services. Watch the number before you reach it, because registering late can leave you paying tax on months you never charged customers for.
In this guide
A shop starts small, grows, and one month quietly crosses a number few owners watch: the sales tax registration threshold. After that, registering is no longer a choice. This guide covers the threshold as set in the Registration Threshold Regulation and published by the Income and Sales Tax Department, exactly when the duty to register begins, and what changes in your shop from the first day after. This is general information, not tax advice, so check your shop's position with your accountant or the department.
The threshold in numbers
The threshold is set by a regulation issued under the law, and it depends on what kind of business you run. It is measured on the value of your taxable sales of goods and services, not on your profit.
| Type of business | Threshold over 12 months |
|---|---|
| Selling goods, in trade or industry | 75,000 JOD |
| Providing services | 30,000 JOD |
| Manufacturing goods subject to the special tax | 10,000 JOD |
| Importing taxable goods or services | No threshold: register within 30 days of the first import, unless it is for personal use |
If you run more than one activity, the lowest threshold among them applies. Figures are from the Registration Threshold Regulation and the department's published notice. Regulations can be amended, so confirm the current figure with the department before you decide anything.
Add up your last twelve months
The threshold is measured over any twelve consecutive months, not the calendar year. Enter each month's sales in the tool and it adds up the last twelve months and shows how far you are from the threshold you pick. The figures stay in your browser and are sent nowhere.
Formula: Share = sales over the last 12 consecutive months ÷ the threshold: 75,000 JOD for goods, 30,000 for services, 10,000 for making special-tax goods.
Exactly when the duty starts
The law does not wait for the end of the year. A seller must register at whichever of these dates comes first.
- The day a new business starts, if it is clear its sales in the first twelve months will exceed the threshold.
- The end of any twelve consecutive months in which your taxable sales reach the threshold, not necessarily January to December.
- The end of eleven consecutive months, if it becomes clear your sales will reach the threshold within those months plus the next one.
Example: a grocery near the line
A grocery in Zarqa sells an average of 6,000 JOD a month for eleven months, 66,000 JOD in total, then 9,000 JOD in the twelfth month with the Ramadan rush. Its sales over twelve consecutive months come to 75,000 JOD, so it has reached the threshold for selling goods.
Note that the threshold is about sales, not profit. A shop on a 10% margin can reach it while earning far less than 75,000 JOD a year.
The law has another rule worth knowing. If several people sell goods or services in the same trade, work together or from one location, and one of them is not registered, they are treated as one person for the threshold. Splitting a shop between two names does not necessarily take it below the line.
If you register late
The law allows a late registrant to be registered from the date the duty arose, not from the date they applied. In practice that can mean being asked for tax on months of sales you never charged your customers for, paid out of your own pocket, plus any penalties.
The department urges anyone who reaches the threshold to register voluntarily straight away, and says it runs field checks to find unregistered businesses. If you are getting close, an hour with your accountant before you cross the line costs far less than one after.
Registering voluntarily before the threshold
A business below the threshold may apply to register, and all the rules for registered sellers then apply. That can suit a shop selling to companies that want a tax invoice so they can deduct the tax, or one that bears a lot of tax on its purchases. It may not suit a shop that sells to individuals on thin margins.
Work it out with your accountant in numbers: how much tax you would collect, how much you could deduct, and what happens to the prices your customers see.
What changes after you register
- The department records your registration and issues a certificate, and you issue a tax invoice for every taxable sale.
- Tax is added to your prices. Decide whether you will show prices including tax or add it at the till, and update your prices before the first sale after registering.
- On JoFotara you will usually issue a sales tax invoice instead of an income invoice, so review your cashier app's connection settings with your accountant.
- You file a return every two months even with no sales, and pay within the month after the period ends.
- You can deduct the general tax you bore on purchases, within the conditions, so keep your supplier invoices.
- You tell the department in writing about any change to your registration details, such as address or activity, within 30 days.
- You keep your records and documents for at least four years, as the law requires.
If you stop selling or are no longer required to register
The department's director cancels a registration if it is shown that you no longer sell taxable goods or services, or if you apply to cancel because you are no longer required to register. Cancellation takes effect at the end of the tax period in which you applied.
One point many owners miss: on cancellation, tax becomes due on the taxable goods you still hold, calculated on the market price or the cost, whichever is lower, and you file a final return. Know what your stock is worth before you apply.
How Ghalleh helps
In Ghalleh you can see your sales for any period you choose, so on any day you can add up the last twelve consecutive months and see how far you are from the threshold, instead of finding out too late. Sales reports go to your accountant as a PDF.
On the day you register, you switch your tax registration in Ghalleh's JoFotara settings to registered for sales tax, set each product's tax and choose whether prices include tax or not. Ghalleh then calculates the tax on every invoice and sends it to JoFotara with the QR on the receipt. Your stock value is in the inventory reports whenever a decision needs it. Ghalleh is available now on Google Play, and the Windows version is on the download page, with a 14-day free trial with every feature and no card.
Common questions
What is the sales tax registration threshold in Jordan?
Under the Registration Threshold Regulation and the department's published notice: 75,000 JOD for sellers of goods, 30,000 JOD for service providers and 10,000 JOD for manufacturers of goods subject to the special tax, over twelve consecutive months. Importers register within 30 days of their first import whatever the volume, unless it is for personal use.
Is the threshold based on sales or profit?
On the value of taxable sales of goods and services, not profit. A shop on thin margins can reach the threshold while earning far less than the figure.
Can I register for sales tax before reaching the threshold?
Yes. The law allows voluntary registration, after which all the rules for registered sellers apply: tax invoices, a return every two months and record keeping. Work out the effect on your prices with your accountant before you decide.