As of 13 August 2026, the Jordanian Ministry of Finance released Official Gazette No. 6067, promulgating amendments to the Value-Added Tax Cross-Border Transaction Regulation designed to harmonize Jordan’s international trade tax procedures with evolving EU customs directives and OECD global minimum tax frameworks. The amendments address gaps in the taxation of imported digital services, establish clearer permanent establishment criteria for foreign e-commerce platforms, and introduce a unified electronic customs declaration system compatible with the World Trade Organization Trade Facilitation Agreement. Legal references include Article 22 of the Jordanian Customs Law, as amended by Ministerial Order No. 45 of 2026, and the accompanying VAT Implementing Regulation updates published concurrently. The measures aim to reduce tax evasion, streamline border clearance for legitimate traders, and ensure Jordan’s sustained compliance with international anti-abuse rules effective 1 January 2027.
Key Takeaways
- Digital Customs Declaration Mandate for Cross-Border Traders: All entities engaged in import or export of goods and services must submit electronic customs declarations via the newly launched Jordan Customs Portal no later than 1 September 2026. The system requires integration with the VAT invoicing platform, automatic validation of supplier VAT numbers, and real-time calculation of applicable duties and taxes. Non-compliant traders face penalties of up to 10% of the declared customs value per infraction, with repeated violations triggering audits and potential revocation of customs authorization.
- Revised Permanent Establishment Criteria for Foreign Digital Providers: The amended regulation clarifies that foreign digital service providers generating annual revenues exceeding JD 500,000 from Jordanian customers are deemed to have a taxable permanent establishment, obligating registration, VAT collection, and remittance. The rule applies retroactively to services rendered since 1 January 2026, requiring affected companies to file back-tax returns, calculate output tax liabilities, and remit any outstanding amounts within 90 days of the regulation’s effective date to avoid interest charges at 12% per annum.
- Alignment with OECD Pillar Two and Global Minimum Tax Standards: In accordance with OECD Pillar Two directives, Jordanian multinational groups with cross-border revenues exceeding EUR 750 million must now apply the undertaxed profits tax mechanism to income derived from Jordanian-source intangibles. The regulation mandates quarterly calculations of the domestic top-up tax, filing of supplementary forms with the Tax Bureau, and maintenance of detailed transfer pricing documentation reflecting Pillar Two adjustments. Groups are further required to conduct annual substance-over-form analyses to demonstrate adequate economic presence and mitigate risk of double taxation under bilateral tax treaties.
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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