E-invoicing in Jordan represents a significant advancement in financial and digital modernization. Introduced in late 2022 and mandated from April 2025, the system—known as JoFotara—was developed by the Income and Sales Tax Department in partnership with the Ministry of Digital Economy and Entrepreneurship. It replaces traditional paper invoices with secure, real-time electronic invoices, aiming to improve tax transparency, reduce evasion, and streamline business operations.
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While discussions often focus on regulatory compliance and tax transparency, the true value of e-invoicing lies in its potential to transform business access to finance, liquidity management, and trust within the digital economy.
Jordan’s economy relies heavily on small and medium-sized enterprises (SMEs), which constitute over 99% of private businesses and employ more than 60% of the workforce. However, a common challenge faced by these enterprises in emerging markets is delayed payments. Properly integrated e-invoicing can serve as a vital link, providing SMEs with faster and more reliable access to working capital & finance.
The primary motivation for Jordan’s e-invoicing implementation was regulatory compliance, reduce tax evasion, strengthen audit trails, and increase transparency. These measures are crucial for establishing a fairer and more efficient tax system. Beyond taxation, e-invoicing also creates a standardized, verified data layer that can support the development of digital finance.
In many advanced economies, e-invoicing data has become a reliable basis for financing decisions. Verified invoices serve as financing trigger and allow banks to provide immediate financing once a buyer approves an invoice. This integration transforms e-invoicing from a just a compliance requirement into a trigger of liquidity and competitiveness.
Jordan has made significant progress by coordinating the efforts to develop the infrastructure required for e-invoicing. The Ministry of Digital Economy and Entrepreneurship (MoDEE) and the Income and Sales Tax Department (ISTD) have collaboratively led the creation of the national e-invoicing system, targeting universal adoption across all sectors.
On the financial front, Jordan has launched several initiatives under the umbrella of the Central Bank of Jordan, such as the Open Finance Framework, the JoRegBox regulatory sandbox, and the JoPACC payment modernization agenda, all of which have contributed to the development of an ecosystem that allows financial institutions to securely access and process transactional data such as CreditPlus, a localized SCF solution . As a result, verified e-invoice data from InvoiceQ can now be securely shared with financial service providers, through integration between InvoiceQ and CreditPlus, which enables companies to convert approved invoices into cash within hours instead of weeks or months.
Although e-invoicing introduces a new method for tax reporting, it also streamlines operations, reduces manual paperwork, and lowers the risk of lost or fraudulent invoices. This, in turn, enhances financial visibility, as each approved invoice becomes a verifiable financial asset eligible for financing through supply chain finance platforms, factoring, or dynamic discounting— where suppliers offer discounts for early payments benefiting both sides of a transaction.
Such a capability is crucial and valuable in an economy where cash flow delays frequently slow down growth. For instance, when a supplier issues an e-invoice to a large buyer, they can automatically receive a financing offer from a participating bank for example. This process accelerates cash conversion cycles and encourages a more resilient supply chain.
Despite its potential, several challenges are expected to be faced, including difficulties integrating accounting systems with e-invoicing platforms, and concerns about data privacy and interoperability, and the most important is limited digital awareness, many companies, especially SMEs, continue to view e-invoicing as an administrative and cost burden rather than a strategic advantage, thereby missing opportunities to enhance supplier relationships and strengthen their value chains.
To address these challenges, Jordan should continue simplifying onboarding processes, provide technical support to companies, and ensure interoperability between government and private-sector platforms. Incentives such as expedited tax refunds, reduced administrative fees, or preferential financing rates for compliant businesses could further accelerate adoption.
Most importantly, there must be increased awareness and a shift in mindset. Companies need to view e-invoicing as a tool for financial inclusion that facilitates access to new credit opportunities and integration with modern banking systems. The digital trust established through e-invoicing is essential for maintaining liquidity, a resilient supply chain, and operational stability.
Jordan’s digital finance transformation is gaining momentum, driven by a strong regulatory framework, a growing ecosystem of fintechs and banks eager to collaborate. As the country enters the next phase, e-invoicing must be positioned not only as a compliance requirement, but as a strategic tool for competitiveness. By integrating e-invoicing with open finance, instant payments, and supply chain finance platforms, Jordan can unlock a seamless flow of trusted data that enhances credit access, reduces fraud, and strengthens the broader economy.
Thus, the awareness and adoption are keys and delivering tangible value across all business—from large corporations to micro-companies and e-invoicing could become a cornerstone of its digital economy—opening new pathways for growth, inclusion, and resilience.
