Jordan prepares to launch the electronic invoice. The Ministry of Digital Economy and Entrepreneurship (MDEE) has published a plan detailing the needs of the electronic invoicing system. The objective is to create a national electronic invoice solution to help the tax authority ensure transparency and accountability in purchasing and sales activities. The system must be accessible for all kinds of users with the stated goal of mass adoption of electronic invoicing in Jordan.
Jordan’s Digitalization Challenges
In Jordan it has been mandatory to issue invoices for the sale of goods since July 2019. However, there is no harmonized invoicing system, making accountability and data interchange between companies complicated.
The Income and Sales Tax Department (ISTD) has committed itself to solve these challenges and will mandate the issuance of electronic invoices to taxpayers who must issue invoices. They will also have to report them to the tax authority.
Currently Jordan lacks an electronic invoicing system. To begin the implementation process the MDEE has published the characteristics and requisites of a national electronic invoicing system through its Request for Proposal (RFP) document.
The requisites and characteristics of the invoicing system describe the user type, the interface, the type of system to manage the invoice or the different processes: issuance, reception, validation, delivery, storage, digital signature solution for the invoice etc.
The electronic invoicing system must guarantee the following aspects:
Control and prevention of fiscal fraud and tax evasión.
Cost efficiency pertaining to paper usage.
Accessibility to the tool through different interfaces like Smart pones and an online platform.
Ease of implementation to accomplish a more widespread adoption by companies and taxpayers.
User experience through different interfaces.
The adoption of an electronic invoicing system in Jordan places it on track to achieve the implementation of electronic government, as recently recommended by the Jordanian Strategy Forum (JSF).
According to information in the “Electronic Government Development Index” provided by the JSF the country finds itself in a very low position compared to other UN member states. The “Electronic Government Development Index” is derived from the EGDI indicator created by the United Nations. It measures the reach and quality of online services, connectivity of telecommunications and human capital.
The JSF report recommends improving security pertaining to electronic data interchange and the security level of the platforms used to perform those transactions.
The government is expected to publish an implementation timeline and the technical requisites for taxpayers to comply this year.