In short: A tax invoice shows the seller's details and tax number, a sequential number, each item and the tax clearly. Tax inside a price is found by dividing by 1.16, not by taking 16% off, and a return is a new invoice, never a deletion.
In this guide
A tax invoice in Jordan is the document that proves a sale. It carries the seller's details and tax number, each item, the amount before tax, the tax and the total, and with JoFotara, the national e-invoicing system, it now has one electronic format and a QR code. It is more than a slip the customer takes away: it is your record with the tax department and your proof if a supplier or customer disputes an amount. This is a practical look at what it contains and how the tax on it is worked out. The binding details for your shop come from your accountant and the Income and Sales Tax Department.
Income invoice or sales tax invoice
JoFotara distinguishes an income invoice, usually for businesses not registered for sales tax, from a sales tax invoice for businesses that are, which shows the tax as a separate line. Your registration decides which one you issue, not a choice at the till.
The general sales tax rate in Jordan is 16%, with other rates and exemptions for some goods and services, and a special tax on certain goods that shows on its own line. Which rate applies to each of your items is a question for your accountant, not a guess to type into your cashier app.
Cash or credit invoice
Either type can be a cash invoice or a credit (receivable) invoice. A cash invoice is for a sale paid at the time, in cash, by card or by CliQ. A credit invoice is for a sale on account paid later, and it usually carries the buyer's details because they owe the shop.
Mixing them up muddles your books: a debt recorded as a cash invoice makes the drawer look short on paper, and a cash payment recorded on credit leaves a customer owing money they already paid. The invoice types guide covers each type and how it shows in JoFotara.
What a tax invoice contains
Details vary with the invoice type and the kind of sale, but a tax invoice usually carries the following.
- The seller's name, address and tax number.
- A sequential invoice number that never repeats, and the date of issue.
- A description of each item, its quantity and unit price.
- The amount before tax, the tax rate, the tax amount and the final total.
- Any discount, shown clearly rather than buried in the price.
- The buyer's details where required, for example a business that needs the invoice for its own books, or a customer buying on credit.
- The payment terms: cash or on credit.
- On an e-invoice: the unique number assigned by the system and a QR code for verification.
Example: a shop receipt, line by line
This is how to read a cash sales tax invoice printed by a till connected to JoFotara. The figures are for illustration only.
| Line on the receipt | What it means |
|---|---|
| Al Nakheel Supermarket · Amman | The seller's name and address as registered |
| Tax number | The seller's number at the Income and Sales Tax Department |
| Invoice 1048 · Cash | A sequential number that never repeats, and the payment type: cash, not credit |
| Milk 1 L × 2 · 1.700 JOD | The item, quantity and line price |
| Subtotal before tax 10.000 JOD | The items' total without tax |
| Sales tax 16% · 1.600 JOD | The tax as a separate line, as on a sales tax invoice |
| Total 11.600 JOD | What the customer paid |
| QR code | Returned by JoFotara once it accepts the invoice, printed at the bottom |
A simplified example. Your accountant sets the rate for each item, and some items are exempt or carry a different rate.
Working out the tax: examples in dinars
The thing that trips shop owners up most is a price that already includes tax. If the shelf price includes 16% tax, the price before tax is the shelf price divided by 1.16, and the tax is the difference. If the price is before tax, the total is the price multiplied by 1.16.
| Case | Price before tax | Tax at 16% | Total |
|---|---|---|---|
| Shelf price 11.600 JOD, tax included | 10.000 JOD | 1.600 JOD | 11.600 JOD |
| Shelf price 5.800 JOD, tax included | 5.000 JOD | 0.800 JOD | 5.800 JOD |
| Price 25.000 JOD before tax | 25.000 JOD | 4.000 JOD | 29.000 JOD |
Examples use the general 16% rate for illustration only. Your accountant sets the rate for your items.
The mistake that keeps coming back
Some people take tax out of a tax-inclusive price by knocking 16% straight off it: 11.600 minus 16% gives 9.744, which is wrong. The right way is to divide by 1.16, which gives 10.000. The gap is 256 fils on a single invoice, but it repeats on every invoice and leaves your figures out of line with what reached the system.
Rounding is the same story. A dinar is 1,000 fils and amounts are written to three decimal places. Let your cashier app calculate the tax on every line the same way every time, instead of a calculator and a scrap of paper.
Return invoices
If a customer brings an item back after the invoice was issued, do not tear the invoice up or try to delete it. Instead, a return invoice is issued, linked to the original, for the refunded amount and its tax. That keeps the record whole: a sale happened, then a return happened, and each has its own effect on tax.
Errors work the same way. An invoice issued with the wrong price or quantity is corrected with a return and a new, correct invoice, not by editing the first one after the fact.
This is why invoice numbers run in sequence with no gaps, and no invoice is deleted once issued. A slip from an adding machine or a handwritten note is usually not enough for a shop registered for sales tax.
Example: a sale to a company with its tax number
An electrical supplies shop in Sahab sells cable to a contracting company for 250.000 JOD before tax. Sales tax at 16% adds 40.000 JOD, so the total is 290.000 JOD. The invoice carries the buying company's name and tax number, and the QR code that comes back from JoFotara. The figures are for illustration only.
If the company pays later, it is a receivable invoice rather than a cash one, and the buyer's details are required. The company keeps the invoice as its record of the tax it paid.
Paper receipts and e-invoices
In a shop that uses JoFotara, the thermal receipt the customer takes is the printed face of an e-invoice that reached the system. That is why it carries a QR code showing the invoice is registered. A receipt without the code in a connected shop means the invoice has not been sent yet, or is waiting for a retry.
In Ghalleh you set each product's price and tax once, the tax is calculated on every line of the invoice, and the invoice goes to JoFotara with the QR printed on the receipt. Your part is getting the right tax rates from your accountant. Ghalleh does the arithmetic. Ghalleh is on Google Play now, the Windows version is on the download page, and the trial is 14 days free with every feature and no card.
Everything about JoFotara on one page: the JoFotara e-invoicing guide.
Common questions
What is the difference between an income invoice and a sales tax invoice?
An income invoice is usually for businesses not registered for sales tax. A sales tax invoice is for registered businesses and shows the tax as a separate line. Your registration decides which one you issue, so ask your accountant.
What is the difference between a cash invoice and a credit invoice?
A cash invoice is for a sale paid at the time. A credit invoice is for a sale on account paid later, and usually carries the buyer's details. Both exist for income invoices and sales tax invoices.
How do I work out sales tax from a price that includes it?
Divide the price by 1.16 to get the price before tax. The difference is the tax. For example, 11.600 JOD divided by 1.16 is 10.000, so the tax is 1.600 JOD. This uses the general 16% rate.
How can I verify an e-invoice in Jordan?
The QR code on the invoice comes back from JoFotara once the system accepts it, and it carries the invoice's key details. Shop owners also see all their invoices in their account on the official portal, portal.jofotara.gov.jo.