Professional Services
VAT on Professional Fee Invoice (Jordan 16%)
Adding 16% Sales Tax to a professional services invoice issued to a Jordanian corporate client.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (VAT-Inclusive Invoice) | Asset (+) | 11,600.00 | - |
| Professional Fee Revenue | Revenue (+) | - | 10,000.00 |
| VAT Output Tax Payable (16%) | Liability (+) | - | 1,600.00 |
💡 Accountant's Note
Professional services (legal, accounting, consulting, engineering) are subject to Jordan's 16% General Sales Tax when supplied to registered businesses. The VAT collected is a liability to the ISTD and is not the firm's revenue.
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