Title: Iran Clarifies Tax Procedure, Streamlines VAT Collection for High-Revenue Food Sector
In a move to enhance tax administration and provide clarity, the Iranian National Tax Administration has officially addressed recent public speculation and detailed a new procedural step for a specific segment of the economy.
Official Denial of Widespread Tax Rumors
A senior tax official has firmly denied circulating social media rumors suggesting a new tax on general purchases made through Point-of-Sale (POS) systems. Mehdi Movahedi, the Spokesman for the Iranian National Tax Administration, explicitly stated, “We strongly deny this rumor, and fundamentally, there is no plan for any new tax in this regard.” This clarification aims to reassure the business community and the public about the stability of the existing tax framework.
Streamlining VAT Collection for Designated Businesses
The core of the announcement concerns the implementation of a streamlined method for collecting Value-Added Tax (VAT). According to Movahedi, the new procedure, effective from the start of the upcoming winter tax period, applies to a specific group of economic actors in the food and catering sector. This primarily includes high-revenue and luxury restaurants that are already subject to VAT laws.
Under the new regulation, these businesses will now pay their 8% VAT provisionally at the point of sale. This means that simultaneously with issuing an electronic invoice to the customer, the designated restaurant will remit the due tax.
A Measure for Administrative Efficiency
This procedural update is designed to resolve previous challenges where some businesses, despite collecting VAT from customers, faced delays in remitting it to the tax authority. “In other words,” Movahedi emphasized, “the same tax that was supposed to be paid after three months will now be paid concurrently with the sale and the issuance of the invoice for the buyer.”
The official noted that this method of simultaneous tax payment is not unprecedented, citing its successful existing application for notary publics and home cinema platforms. The current phase of implementation is targeted, affecting approximately 100 high-income restaurants, and reflects the administration’s ongoing efforts to modernize and improve the efficiency of the national tax system.