Title: Iran Ushers in New Era of Digital Tax Compliance, Phasing Out Paper Receipts
In a significant step towards modernizing its tax system, the Iranian National Tax Administration (INTA) has announced that paper bills will no longer be accepted for tax credit purposes starting December 22, 2023. This move solidifies the mandatory shift to electronic invoicing for all businesses.
A Final Deadline for Digital Shift
The directive was confirmed by Mehdi Ranaei, head of the Regulatory Center for Sales Terminal and Taxpayer Systems at the INTA. Addressing a gathering of trusted service companies, Ranaei stated that from the first of Dey (December 22, 2023), “paper bills will not be acceptable.” He emphasized that the coordination meetings with partner companies were crucial to ensure a smooth transition and prevent any potential issues for taxpayers seeking to claim their due tax credits.
“The expectation is that you will help institutionalize this,” Ranaei told the companies, “so that taxpayers know they must issue electronic invoices for their credits to be accepted and to benefit from the advantages.”
Building Bridges, Not Barriers
Framing the new policy as a measure to improve the taxpayer experience, Ranaei outlined the vital role of trusted service companies as intermediaries between the INTA and the public. He stated that the goal is to reduce “friction between taxpayers and the organization” and to create a system where services are delivered seamlessly.
“We expect you to be ambassadors and intermediaries,” he said, “both conveying the problems of the people to us and delivering the messages and services from us to them.” The ultimate objective, according to Ranaei, is to increase “tax compliance” and encourage taxpayers to follow the law with greater willingness.
A Collaborative Path Forward
The INTA has signaled a collaborative approach with service providers, moving beyond a top-down directive. Ranaei made it clear that the administration does not want a one-way relationship where it only issues orders. Instead, he invited service companies to present their ideas and suggestions for improving the processes related to the new electronic invoicing system.
“We will dedicate part of our future meetings to these very topics,” he stated, “so that decisions are made based on the practical realities of the market and your experience.”
This digital transformation is also expected to expand to include new trades and business groups, creating a fresh market for service providers while preparing new taxpayers to engage with the law effectively. The INTA’s stated vision is for this shift to strengthen trust and foster a positive, systematic, and effective interaction between the Iranian tax administration and its citizens.