Introduction
As of April 1, 2025, Jordan has entered a new regulatory phase that makes VAT and electronic invoicing (e-invoicing) not just recommended, but mandatory for all businesses registered for VAT. The national e-invoicing system known as JoFotara requires that invoices be generated through it or via systems fully integrated with it.
For businesses in Jordan, complying with these regulations isn’t optional. Invoices that do not meet the JoFotara requirements are invalid for tax deductions. Thus, having a system that supports VAT & e-invoicing fully is now essential. Mozon, through its invoicing, accounting, and ERP systems, is well positioned to support companies in meeting these requirements.
What is JoFotara & What Are the VAT & E-Invoicing Requirements
Mandatory Compliance
From April 1, 2025, all B2B, B2C, and B2G transactions must use JoFotara or a system integrated with it. Invoices not issued this way are not valid for VAT deduction.Invoice Format & Validation
Invoices must be generated in structured electronic formats such as XML or JSON.
Each invoice must be validated by JoFotara, which issues a unique QR code to be embedded in the invoice.
Archiving & Record Keeping
Businesses must store invoices securely and maintain proper audit trails for tax and compliance purposes.Integration
Existing ERP/invoicing systems must be integrated with JoFotara (via API or approved channels) to ensure invoices are properly generated, validated, and submitted.Penalties for Non-Compliance
Failure to comply may result in fines, rejection of invoices for VAT purposes, and exclusion from government tenders (B2G).
How Mozon Systems Help Companies Comply
| Compliance Requirement | How Mozon Addresses It |
|---|---|
| Invoice Format & Submission | Mozon Invoicing System generates legally valid invoices. It supports structured invoice templates and can adapt to XML/JSON formats required by JoFotara. |
| QR Code Validation | Invoices can be validated and embedded with QR codes once accepted by JoFotara. |
| Secure Archiving & Audit Trails | Mozon stores invoice records securely with audit trails, user permissions, and retrieval features. |
| Integration & Automation | ERP and invoicing modules are designed for integration with JoFotara to automate workflows and VAT submission. |
| User Permissions & Language Support | Role-based security ensures compliance, and bilingual Arabic/English support helps teams operate effectively. |
Implementation Best Practices with Mozon
Audit your invoicing process to ensure required fields exist.
Configure Mozon invoice templates with correct VAT fields, buyer/seller tax IDs, and QR placement.
Integrate with JoFotara through official APIs for validation and submission.
Train staff to input accurate tax data and avoid errors.
Use EagleEye dashboards to track compliance KPIs in real-time.
Stay updated with changes to ISTD and Ministry of Finance regulations.
Example: A Jordanian Business Using Mozon
A retail company in Amman generates thousands of invoices daily. Starting April 2025:
Invoices are created in Mozon, then automatically formatted for JoFotara submission.
Once validated, the invoice receives a QR code and is securely archived.
EagleEye dashboards give management a live view of VAT collected vs. VAT due, rejected invoices, and compliance rate.
The company avoids penalties, ensures smooth audits, and saves costs by eliminating manual processes.
Benefits Beyond Compliance
Implementing VAT & e-invoicing with Mozon goes further than just meeting the law:
Reduces manual errors and fraud.
Saves time and costs in invoice management.
Improves cash flow through faster invoice processing.
Provides real-time financial insights for better decisions.
Strengthens trust and transparency with government and partners.
Conclusion
VAT and e-invoicing in Jordan, through JoFotara, are no longer optional—they are mandatory. To remain compliant and competitive, companies need systems that integrate seamlessly with these requirements.
Mozon’s ERP, invoicing, and BI solutions provide a comprehensive platform for compliance, efficiency, and growth. By using Mozon, businesses can transform regulatory obligations into a strategic advantage that improves performance and decision-making.
