27/06/2021

Director of the Income and Sales Tax Department Hussam Abu Ali said that the draft law amending the General Sales Tax Law for the year 2021 stands to the committed merchants through the concept of supplying the good or service and the tax area of ​​the Kingdom, both of which are a global practice applied by more than 160 countries.

Abu Ali added in a meeting with members of the Jordan Chamber of Commerce at the chamber's headquarters today, Monday, that the draft law aims to speed up the merchant's receipt of tax refunds out of the tax paid.

The draft law defines the supply of a commodity by selling goods from one party to another or transferring property rights and it defines a service supply as a supply that does not include the sale of goods. The tax area is the lands and territorial waters of the Kingdom, with the exception of free zones, the Aqaba Special Economic Zone, free cities and duty-free markets.

Abu Ali explained that every dinar to the merchant will receive it after 3 months instead of 9 without any obstacles, and the merchant “taxpayer” according to the new draft law can apply for refunds after two months instead of 6 months

He indicated that the law currently in force contains loopholes that may be used for fraud and non-payment of taxes. The new draft law will limit tax evasion and avoidance and does not include imposing any new taxes or expanding the tax base.

Members of the Jordan Chamber of Commerce demanded equality of taxes on goods, especially goods that are derived from non-taxed goods such as milk and cheese products, for example.

They demanded a real study of the tax base that takes into account the rates of poverty, unemployment and income, in addition to exempting tourist establishments from taxes due to their damage due to the closure and disruption of the tourist season, and finding solutions for the commercial sector to help it return to work gradually and reduce its costs, especially since many of its sectors incurred great losses as a result of Corona and what it imposed of restrictions and closures.