Jordan GST Return Skill v2.0

Section 1 -- Quick reference

Field	Value
Country	Jordan (Hashemite Kingdom)
Standard rate	16%
Special rates	4% (telecoms), 5% (certain services), 8% (certain goods), 10% (certain goods/services)
Zero rate	0% (exports, specified basic foodstuffs)
Exempt supplies	Financial services, medical, education, residential rental, unprocessed agricultural
Filing portal	https://www.istd.gov.jo
Authority	Income and Sales Tax Department (ISTD)
Currency	JOD (Jordanian Dinar)
Filing frequency	Monthly (turnover > JOD 1M); Bi-monthly (others)
Deadline	End of month following period
Mandatory registration	JOD 75,000 (goods), JOD 30,000 (services)
Primary legislation	General Sales Tax Law No. 6 of 1994 (as amended)
Contributor	Open Accounting Skills Registry
Validated by	Pending
Last research update	April 2026

Conservative defaults:

Ambiguity	Default
Unknown rate on a sale	16%
Unknown VAT status of a purchase	Not deductible
Unknown counterparty country	Domestic Jordan

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Section 2 -- Required inputs and refusal catalogue

Required inputs

Minimum viable -- bank statement for the period. Acceptable from Arab Bank, Housing Bank, Jordan Ahli Bank, Cairo Amman, Bank al Etihad, or any other Jordanian bank.

Recommended -- sales invoices (Arabic required), purchase invoices for input claims.

Refusal catalogue

R-JO-1 -- Free zone complex. Trigger: Aqaba Special Economic Zone operations. Message: "ASEZA has specific GST rules. Escalate to licensed practitioner."

R-JO-2 -- Special Sales Tax. Trigger: alcohol, tobacco, fuel subject to SST. Message: "SST is separate from GST and computed first. Escalate for combined computation."

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Section 3 -- Supplier pattern library

3.1 Jordanian banks (exempt -- exclude)

Pattern	Treatment	Notes
ARAB BANK	EXCLUDE	Financial service, exempt
HOUSING BANK, ISKAN BANK	EXCLUDE	Same
JORDAN AHLI, CAIRO AMMAN	EXCLUDE	Same
BANK AL ETIHAD, CAPITAL BANK	EXCLUDE	Same
INTEREST, LOAN	EXCLUDE	Out of scope

3.2 Government

Pattern	Treatment	Notes
ISTD, INCOME AND SALES TAX	EXCLUDE	Tax payment
CUSTOMS, JORDAN CUSTOMS	Check for import GST	Duty exclude; GST recoverable
SSC, SOCIAL SECURITY CORPORATION	EXCLUDE	Social contribution

3.3 Utilities

Pattern	Treatment	Notes
JEPCO, EDCO, IDECO	Domestic 16%	Electricity
MIYAHUNA, WAJ	Domestic 16%	Water
ZAIN JORDAN, ORANGE JORDAN, UMNIAH	Domestic 4%	Telecoms at special rate

3.4 SaaS

Pattern	Treatment	Notes
GOOGLE, MICROSOFT, ADOBE	Reverse charge 16%	Non-resident service
AWS, ZOOM, SLACK	Reverse charge 16%	Non-resident

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Section 4 -- Worked examples

Example 1 -- Reverse charge on US SaaS

Input: 05.01.2026 ; SALESFORCE INC ; DEBIT ; Monthly CRM ; USD 200 ; JOD 142

US entity. No GST. Reverse charge at 16%. Output and input both reported. Net zero.

Example 2 -- Telecoms at 4%

Input: 10.01.2026 ; ZAIN JORDAN ; DEBIT ; Mobile plan ; -50.00 ; JOD

Telecoms services at special 4% rate, not 16%.

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Section 5 -- Classification rules

5.1 Standard rate 16%

Default for all taxable supplies unless specifically listed at another rate.

5.2 Special rates

4% telecoms (domestic), 5% certain services, 8% certain goods, 10% certain goods/services. Rate determined by ISTD schedules.

5.3 Zero-rated (0%, input recoverable)

Exports, international transport, basic foodstuffs (bread, rice, sugar, milk per Cabinet decision), goods to free zones (conditions).

5.4 Exempt (no GST, no recovery)

Financial services, medical, education, residential rental (unfurnished), unprocessed agricultural, government-to-government, charitable (conditions).

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Section 6 -- GST return form structure

Output section

Section	Description
Output GST at 16%	Standard-rated supplies
Output GST at special rates	4%, 5%, 8%, 10% separately
Zero-rated	Exports and zero-rated supplies
Exempt	Exempt supplies

Input section

Section	Description
Input GST on domestic purchases	Recoverable if taxable
Input GST on imports	Customs GST
Input GST adjustments	Blocked, apportionment

Net

Output GST minus allowable input GST. Credit brought forward from prior period.

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Section 7 -- Reverse charge and imports

Services from non-resident: self-assess at 16%. Claim input if for taxable supplies. Net zero.

Import of goods: GST on CIF plus customs duties. Collected by Jordan Customs. Recoverable if for taxable supplies.

Legislation: GST Law No. 6/1994, reverse charge provisions.

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Section 8 -- Deductibility and blocked input

Blocked:

• Entertainment and hospitality
• Motor vehicles for personal use
• Non-business goods/services
• Purchases related to exempt supplies
• Gifts/donations (above limits)

Partial exemption: turnover-based apportionment. ISTD approval required.

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Section 9 -- Filing, deadlines, and penalties

Category	Period	Deadline
Large taxpayers (> JOD 1M)	Monthly	End of following month
Others	Bi-monthly	End of month following bi-monthly period

Bi-monthly periods: Jan-Feb (due 31 Mar), Mar-Apr (31 May), May-Jun (31 Jul), Jul-Aug (30 Sep), Sep-Oct (30 Nov), Nov-Dec (31 Jan).

Violation	Penalty
Late filing	JOD 100-500 per return
Late payment	4% first week; 1% per week after
Tax evasion	Fines and imprisonment

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Section 10 -- Edge cases, test suite, and escalation

Edge cases

EC1 -- Foreign SaaS. Reverse charge at 16%. Net zero.

EC2 -- Export of goods. Zero-rated. Input recoverable.

EC3 -- Telecom at 4%. Not 16%.

EC4 -- Free zone to domestic. GST applies when goods leave free zone.

EC5 -- Credit note. Reduces output GST in period issued.

EC6 -- Exempt financial services. No output GST. Input not recoverable.

EC7 -- Import of goods. GST on CIF + duty. Recoverable.

Test suite

Test 1 -- Standard sale. JOD 1,000 net. Expected: output GST JOD 160 (16%).

Test 2 -- Export. JOD 5,000 goods. Expected: 0% GST. Input recoverable.

Test 3 -- Reverse charge. UK consulting JOD 1,420. Expected: output JOD 227.20, input JOD 227.20.

Test 4 -- Telecoms. JOD 50,000 services. Expected: GST JOD 2,000 (4%).

Test 5 -- Exempt supply. Bank financial services JOD 100,000. Expected: no output GST. Input JOD 3,200 not recoverable.

Test 6 -- Import. Electronics CIF JOD 10,000 + duty JOD 1,000. Expected: GST base JOD 11,000, GST JOD 1,760.

Escalation protocol

REVIEWER FLAG / ESCALATION REQUIRED
[Standard format]

Out of scope -- direct tax

• Corporate income tax: 20% standard; banks 35%; telecoms 24%; mining 30%
• Personal income tax: progressive 5%-30%
• Social security: employer 14.25%, employee 7.5%

Prohibitions

• NEVER apply a rate other than 0%, 4%, 5%, 8%, 10%, 16%
• NEVER allow input recovery on exempt supplies
• NEVER ignore reverse charge on non-resident services
• NEVER treat imports as zero-rated
• NEVER issue invoices without Arabic text
• NEVER compute numbers -- engine handles arithmetic
• NEVER file without confirming correct period (monthly vs bi-monthly)

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Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com.