Tax

Recording VAT Input Tax in Jordan

How to record Value Added Tax (VAT) on local purchases and expenses for Jordanian companies.

Account NameTypeDebit ($)Credit ($)
Expense / AssetMixed1,000.00-
VAT Input Tax (16%)Asset (+)160.00-
Accounts Payable / CashLiability (+)-1,160.00

💡 Accountant's Note

In Jordan, the standard Sales Tax is 16%. You debit the VAT Input account as an asset because it will be deducted from your VAT Output when filing with the ISTD.

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Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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