Real Estate

VAT on Property Sale (Jordan)

Recording the 16% Sales Tax on the sale of a commercial property in Jordan.

Account NameTypeDebit ($)Credit ($)
Cash / Accounts ReceivableAsset (+)1,160,000.00-
Property Sales RevenueRevenue (+)-1,000,000.00
Sales Tax Payable (VAT Output)Liability (+)-160,000.00

💡 Accountant's Note

Commercial property sales in Jordan are subject to 16% Sales Tax. Residential property is generally exempt. VAT collected is a liability to the ISTD.

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