Iraq VAT / GST

Sales tax (no broad-based VAT)

Iraq does not operate a broad-based VAT or GST. Instead, a selective sales tax (introduced in 2015) applies to specified goods and services at varying rates. An Iraqi accountant should confirm current rates, as the schedule has changed over time and broader VAT reform has been discussed.

• Broad-based VAT/GST — None — Iraq has no general value added tax or goods-and-services tax (Income Tax Law No. 113 of 1982 / Iraqi Sales Tax regime (https://taxsummaries.pwc.com/iraq/individual/other-taxes))
• Sales tax — alcohol and tobacco (cigarettes) — 300% percent (approx — confirm current rate) (Iraqi Sales Tax regime (2015) (https://taxsummaries.pwc.com/iraq/individual/other-taxes))
• Sales tax — mobile recharge cards and internet — 20% percent (approx — confirm current rate) (Iraqi Sales Tax regime (2015) (https://taxsummaries.pwc.com/iraq/individual/other-taxes))
• Sales tax — travel tickets — 15% percent (approx — confirm current rate) (Iraqi Sales Tax regime (2015) (https://taxsummaries.pwc.com/iraq/individual/other-taxes))
• Sales tax — cars — 15% percent (approx — confirm current rate) (Iraqi Sales Tax regime (2015) (https://taxsummaries.pwc.com/iraq/individual/other-taxes))
• Sales tax — deluxe / first-class restaurants and hotels — 10% percent (approx — confirm current rate) (Iraqi Sales Tax regime (2015) (https://taxsummaries.pwc.com/iraq/individual/other-taxes))
• VAT registration threshold — Not applicable — there is no VAT registration regime; sales tax is levied on supply of the listed goods/services (Iraqi Sales Tax regime (2015) (https://taxsummaries.pwc.com/iraq/individual/other-taxes))
• Reverse charge mechanism — Not applicable — no VAT system means no VAT reverse-charge mechanism (Iraqi Sales Tax regime (2015) (https://taxsummaries.pwc.com/iraq/individual/other-taxes))