Title: New Fiscal Transparency Measure Launches on POS Terminals: A Phased Approach
In a significant step towards enhancing fiscal transparency and streamlining tax collection, the first phase of a new automated tax deduction system on Point-of-Sale (POS) terminals has commenced. The initiative, which began on December 22, 2023, is being rolled out under the framework of the Value-Added Tax (VAT) law.
A Coordinated Implementation
The launch is the result of a joint agreement between the National Tax Administration and the Central Bank of Iran. This collaboration is designed to ensure a smooth implementation process, preventing any disruption to the normal flow of payments and receipts for both businesses and their customers.
How the New System Operates
During this initial phase, the system will automatically deduct 8% of the transaction amount from customer purchases at designated terminals. This amount is considered an advance payment on the VAT. The remaining balance is then deposited into the account of the business owner (the card acceptor). The mechanism is designed to bring a higher degree of accuracy and efficiency to the application of the VAT law.
Initial Phase Targets Specific Sectors
The first wave of this program focuses on specific business categories. Initial reports indicate that a select group of chain stores and a number of upscale restaurants have been included. It is estimated that approximately 175 cafes and restaurants in the areas of Tehran and Shemiranat, along with a chain restaurant on Kish Island, are among the first entities to fall under this new regulation.
This phased approach allows for the systematic integration of businesses into the new fiscal system, marking a pivotal move towards greater economic organization.