How vat / sales tax works in Jordan
Jordanian sales tax defaults to 16% on goods and services, with reduced and zero bands on defined essentials, output tax charged, input tax credited, and monthly electronic returns.
Registration follows turnover tests with voluntary entry below, while exports zero-rate and free-zone flows follow special regimes.
E-invoicing mandates phase by taxpayer size, and cross-border digital supplies face collection rules of their own.
Tax rates at a glance
- Standard VAT
- 16%
- Reduced bands
- Lower / 0%
- Exports
- 0%
- Exempt supplies
- Exempt
- Registration line
- Turnover test
- Filing rhythm
- Monthly
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersManufacturersFreelancersExpatsCross-border traders
Watch out for
- Reduced and zero bands follow statutory lists rather than intuition, so food, pharma, and agricultural supplies need product-level confirmation.
- E-invoicing waves assign deadlines by size and sector, and missing-wave issuance invalidates buyer credits.
- Free-zone and development-area flows carry relief with qualification conditions, not automatic exemption.
- Digital-service collection pulls non-resident vendors into duties from qualifying B2C sales.
Frequently asked questions
What is the sales tax rate in Jordan?
Jordan applies 16% general sales tax in 2026, with reduced and zero bands on defined goods and exemptions for finance, health, and education.
How often are Jordanian sales-tax returns filed?
Monthly through electronic returns, with e-invoicing mandates phasing by taxpayer size and sector.
Do foreign digital sellers collect Jordanian tax?
Yes on qualifying B2C digital supplies through dedicated collection tracks, with registration duties layered on crossing thresholds.