A registered person is entitled to recover general tax paid in excess or by mistake, or tax previously collected on exported goods or services, within a period not exceeding 30 days from the date of submitting a refund request that meets the conditions, under the General Sales Tax Law and the executive instructions issued for tax refunds.
Cases in Which the Tax May Be Refunded
The Law provides for refunding the tax from the amount of tax collected in the same year, within a period not exceeding 30 days from the date of submitting the refund request, in any of the following cases:
- Tax previously collected on exported goods or services, or on goods used to produce other goods that were exported.
- Tax collected by mistake.
- The balance of deductible general input tax under Article (19) of the Law, which has been paid for a period exceeding two months without being deducted from the general tax due to the Department during that period.
- Tax paid on goods in the possession of non-resident persons when they leave the Kingdom, provided the amount of tax to be refunded is not less than fifty dinars and not more than five hundred dinars.
- Special tax previously paid on goods sold to any of the entities exempt under Article (21) of the Law, once the Department has verified that it received this tax.
Conditions for Refunding Tax on Exported Goods and Services
Under the Sales Tax Refund Instructions, tax previously collected on exported goods or services, or on goods used in producing exported goods, or on goods or services supplied to free cities, free markets, and the special economic zone, is refunded within a period not exceeding 30 days from the date of submitting a refund request that meets the conditions. This requires that a locally purchased good or service was bought from a registered person under a tax invoice, that tax not be refunded on used goods, and that the export be carried out in accordance with the applicable export instructions.
Refunding the Accumulated Input Tax Balance
The balance of deductible general input tax under Article (19) of the Law, paid more than two months earlier without being deducted, is refunded provided the registered person has filed all their tax returns, and the goods or services relating to that balance are still in their possession and have not been used. This type of refund is meant to avoid a registered person's funds sitting idle with the Department without justification, when their input tax balance cannot be absorbed against the tax due in later tax periods.
Submitting the Refund Request
A registered person seeking a refund must submit a request to the Department on the form it has adopted, attaching the signed tax return certified by the Department, along with the supporting documents for the refund case claimed, whether tax invoices, customs declarations, or proof of the export, as applicable.
Legal References
- General Sales Tax Law No. 6 of 1994 — Article 20
- Executive Instructions No. (2) of 2022, Sales Tax Refund Instructions — Article 3
- Executive Instructions No. (2) of 2022, Sales Tax Refund Instructions — Article 4
For questions about your specific situation, you can ask the Jordan Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.