Calculate General Sales Tax (GST) in Jordan using the standard 16% rate or the reduced rate available in the calculator. Use it to find tax-inclusive and tax-exclusive prices or determine how much tax is included in a price.
What is the GST rate in Jordan?
The standard General Sales Tax rate in Jordan is 16%. Certain goods and services may qualify for reduced rates, zero-rating or exemption. Special taxes can also apply to particular categories.
Jordan publishes separate schedules for supplies taxed at 2%, 4%, 5% and 10%. The correct rate depends on the precise classification of the goods or services being supplied.
This calculator includes the standard 16% rate and the commonly used 4% reduced rate. Check the current official tax schedules before applying a reduced or special rate.
What does GST mean in Jordan?
In Jordan, GST stands for General Sales Tax. This differs from countries where GST means Goods and Services Tax.
Jordan’s General Sales Tax operates as a consumption tax on goods and services and has features similar to a value added tax. The standard rate is 16%, while certain goods and services may be taxed at reduced rates, zero-rated, exempt or subject to special tax.
The applicable rate depends on the specific goods or services supplied. Businesses should check the current schedules published by Jordan’s Income and Sales Tax Department before applying a reduced or special rate.
Reduced, zero-rated and exempt supplies
Jordan’s General Sales Tax system includes supplies taxed at reduced rates of 2%, 4%, 5% and 10%. It also includes zero-rated and exempt supplies.
Examples previously associated with the 4% schedule include certain agricultural goods, food products, tea, tomato paste, natural phosphates, potash and fertilisers. However, the classification and rate applicable to a particular product can depend on its exact description in the official schedule.
Some goods and services may also be subject to special tax in addition to, or instead of, the ordinary treatment. Always verify the current classification using the official General Sales Tax schedules.
Jordan General Sales Tax history
Jordan began applying General Sales Tax in 1994 under the General Sales Tax Law No. 6 of 1994.
The system initially applied on a more limited basis. It was subsequently expanded to cover additional goods and services and developed into a system with characteristics similar to value added tax.
The standard General Sales Tax rate is currently 16%.
How to calculate Jordan GST manually
To calculate General Sales Tax at the standard 16% rate, multiply the tax-exclusive price by 0.16.
For a tax-exclusive price of JOD 200.00:
- GST amount: JOD 200.00 × 0.16 = JOD 32.00
- GST-inclusive price: JOD 200.00 + JOD 32.00 = JOD 232.00
To calculate the GST-inclusive price directly, multiply the tax-exclusive price by 1.16:
- JOD 200.00 × 1.16 = JOD 232.00
To extract 16% GST from a GST-inclusive price, multiply the inclusive price by 16 and divide it by 116:
- GST amount: JOD 232.00 × 16 ÷ 116 = JOD 32.00
- GST-exclusive price: JOD 232.00 − JOD 32.00 = JOD 200.00
Alternatively, divide the GST-inclusive price by 1.16 to find the GST-exclusive amount:
- JOD 232.00 ÷ 1.16 = JOD 200.00
Data source: for current legislation and schedules, consult Jordan’s Income and Sales Tax Department.