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24 January 2018

Jordan amends GST law for 2018

On 4 January 2018, Jordan's Council of Ministers (CoM) approved amendments to the General Sales Tax (GST) tables attached to the Jordanian General Sales Tax No. 1994 (the GST Law). This follows their review of recommendations made by the Minister of Finance/Income and Sales Tax and the Economic Development Committee.

The major amendments that were made to the GST Law with respect to the GST tables included adding new reduced tables subject to 5% and 10%, as well as, the transfer of certain goods and services previously included in the zero, exempt, and 4% GST tables to the newly incorporated 5% and 10% tables.

Further, the CoM amended the Special Tax (ST) system No. 80 of year 2000 under the amended Regulation No. 3 of year 2018, whereby the following amendments were made:

  • Increase in the ST rate imposed on smoke at different rates;
  • Increase in the ST rate on octane gasoline 95 and 98 from 24% to 30%;
  • Increase the ST rate imposed on soft drinks from 10% to 20%; and
  • A new ST has been imposed on cars that operate in whole or in part with gasoline, depending on the weight of the car, at different rates ranging from JOD500 to JOD1,500 (approx. US$700 to US$2100).

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Jordan), Amman

  • Ali Samara
    ali.samara@jo.ey.com
  • Mohammed Freihat
    mohammed.freihat@jo.ey.com
  • Mohammad Diab
    mohammad.diab@jo.ey.com

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ATTACHMENT

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Document ID: 2018-5184

 
 

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