Education

VAT on Commercial Activities (Jordan)

Recording 16% VAT on commercial revenue streams — venue hire, cafeteria, parking — for a Jordanian school.

Account NameTypeDebit ($)Credit ($)
Cash / Accounts ReceivableAsset (+)11,600.00-
Auxiliary Revenue (Commercial)Revenue (+)-10,000.00
VAT Output Tax Payable (16%)Liability (+)-1,600.00

💡 Accountant's Note

Educational services in Jordan may be exempt, but commercial activities (venue hire, car parks, external catering) attract 16% Sales Tax. The institution must register for VAT on commercial activities above the threshold.

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