Every person whose sales of taxable goods or services reach or exceed the registration threshold must register with the Income and Sales Tax Department. The threshold varies by activity: ten thousand dinars for a manufacturer of goods subject to the special tax, seventy-five thousand dinars for a seller of goods otherwise, and thirty thousand dinars for a service provider.
Thresholds by Type of Activity
The Law defines the registration threshold as the point at which a person becomes obligated to register with the Department as a taxpayer responsible for collecting the tax, declaring it, and remitting it to the Department. The Registration Threshold System for General Sales Tax purposes sets this threshold as follows:
- Ten thousand dinars for a manufacturer of goods subject to the special tax.
- Seventy-five thousand dinars for a person selling goods, other than the manufacturer referred to above.
- Thirty thousand dinars for a service provider.
If a person carries on more than one of these activities, the applicable threshold is the lowest amount set for any of them, rather than the combined total of sales across all activities.
When Does the Registration Obligation Arise?
A person who sells a taxable good or service must register upon the earliest of the following dates: the date of starting a new business if it appears that sales during the following twelve months may exceed the registration threshold, the end of a period of twelve consecutive months in which sales reached the threshold, or the end of a period of eleven consecutive months in which it appears that sales will reach the threshold during that period and the following month.
Registering as an Importer and Multiple Persons in One Activity
A person who imports a taxable good or service must register with the Department within thirty days of the date of their first import, regardless of the volume of imports, unless the import is for personal use. The Law also provides that if more than one person jointly sells a good or service, and their sales relate to a single profession or craft carried out together or at one location, they are treated as a single person for purposes of calculating the registration threshold.
Voluntary Registration
A person whose sales have not reached the registration threshold may apply to the Department to register voluntarily, in which case the provisions applicable to a registered person under the Law apply to them, including the right to deduct input tax and the duty to file periodic returns.
Legal References
- Registration Threshold System for General Sales Tax Purposes No. 81 of 2000 — Article 3
- General Sales Tax Law No. 6 of 1994 — Article 13
- General Sales Tax Law No. 6 of 1994 — Article 14
For questions about your specific situation, you can ask the Jordan Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.