SaaS

VAT Reverse Charge on Foreign SaaS (AWS, Google)

Self-assessing VAT on cloud service invoices from foreign providers under the reverse charge mechanism.

Account NameTypeDebit ($)Credit ($)
Cost of Revenue / R&D ExpenseExpense (+)5,000.00-
VAT Input (Reverse Charge)Asset (+)800.00-
VAT Output (Reverse Charge)Liability (+)-800.00
Accounts Payable / CashLiability (+)-5,000.00

💡 Accountant's Note

In Jordan, a registered SaaS company buying digital services from AWS, Google, or other foreign providers must self-assess VAT. The input and output entries net to zero but both must appear on the return.

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