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OOpenAccountants
openaccountants/skills/iran-vat.md
iran-vat.md229 lines7.1 KB
v20
1---
2name: iran-vat
3description: Use this skill whenever asked to prepare, review, or classify transactions for an Iran VAT return. Trigger on phrases like "Iran VAT", "INTA tax", "Iran value added tax". Iran imposes VAT at 10% (9% VAT + 1% municipal) under the VAT Law of 2008 as amended. Iran uses the Solar Hijri calendar for all tax purposes. ALWAYS read this skill before handling any Iran VAT work.
4version: 2.0
5---
6 
7# Iran VAT Return Skill v2.0
8 
9## Section 1 -- Quick reference
10 
11| Field | Value |
12|---|---|
13| Country | Iran (Islamic Republic) |
14| Combined rate | 10% (9% VAT + 1% municipal tax) |
15| Zero rate | 0% (exports) |
16| Exempt | Unprocessed agricultural, bread/flour, books, medical, education, banking/insurance, public transport, handmade carpets |
17| Filing portal | https://tax.gov.ir |
18| Authority | Iranian National Tax Administration (INTA) |
19| Currency | IRR (Iranian Rial) |
20| Filing frequency | Quarterly (seasonal, Solar Hijri calendar) |
21| Primary legislation | VAT Law of 2008; 2025 Budget Act |
22| Contributor | Open Accounting Skills Registry |
23| Validated by | Pending |
24| Last research update | April 2026 |
25 
26**Conservative defaults:**
27 
28| Ambiguity | Default |
29|---|---|
30| Unknown rate | 10% (9% + 1%) |
31| Unknown purchase status | Not deductible |
32| Unknown counterparty | Domestic Iran |
33 
34---
35 
36## Section 2 -- Required inputs and refusal catalogue
37 
38**Minimum viable** -- bank statement. Acceptable from Bank Melli, Bank Mellat, Bank Saderat, Bank Tejarat, Parsian Bank, or any Iranian bank.
39 
40**Refusal catalogue:**
41 
42**R-IR-1 -- Free Trade Zone.** Trigger: operations in Kish, Qeshm, Chabahar, Arvand, Aras zones. Message: "Free zone VAT rules vary by zone. Escalate to specialist."
43 
44**R-IR-2 -- Oil/gas sector.** Message: "Escalate to specialist."
45 
46---
47 
48## Section 3 -- Supplier pattern library
49 
50### 3.1 Iranian banks (exempt -- exclude)
51 
52| Pattern | Treatment | Notes |
53|---|---|---|
54| BANK MELLI, MELLI IRAN | EXCLUDE | Exempt financial service |
55| BANK MELLAT | EXCLUDE | Same |
56| BANK SADERAT, BANK TEJARAT | EXCLUDE | Same |
57| PARSIAN BANK, PASARGAD BANK | EXCLUDE | Same |
58| INTEREST, LOAN | EXCLUDE | Out of scope |
59 
60### 3.2 Government
61 
62| Pattern | Treatment | Notes |
63|---|---|---|
64| INTA, SAZMAN MALIYATI | EXCLUDE | Tax payment |
65| CUSTOMS, IRICA | Check for import VAT | Duty exclude; VAT recoverable |
66| TAMIN EJTEMAEI, SOCIAL SECURITY | EXCLUDE | Social insurance |
67 
68### 3.3 Utilities
69 
70| Pattern | Treatment | Notes |
71|---|---|---|
72| TAVANIR, BARGH | Domestic 10% | Electricity |
73| MOKHABERAT, MCI, IRANCELL, RIGHTEL | Domestic 10% | Telecoms |
74 
75### 3.4 SaaS and digital
76 
77| Pattern | Treatment | Notes |
78|---|---|---|
79| Non-resident digital services | Reverse charge 10% | Subject to payment restrictions |
80 
81---
82 
83## Section 4 -- Worked examples
84 
85### Example 1 -- Standard domestic sale
86 
87**Input:** Company sells goods IRR 100,000,000 net. Standard-rated.
88 
89VAT (9%) = IRR 9,000,000. Municipal (1%) = IRR 1,000,000. Total tax = IRR 10,000,000. Gross = IRR 110,000,000.
90 
91### Example 2 -- Free zone to mainland
92 
93Goods from Kish Free Zone to Tehran. Treated as import. VAT at 10% at customs checkpoint.
94 
95---
96 
97## Section 5 -- Classification rules
98 
99### 5.1 Standard rate 10% (9% VAT + 1% municipal)
100 
101Single combined rate for all taxable supplies. Both components reported separately on return.
102 
103### 5.2 Zero-rated (0%, input recoverable)
104 
105Exports of goods/services outside Iran. Goods to Free Trade Zones (conditions).
106 
107### 5.3 Exempt (no VAT, no recovery)
108 
109Unprocessed agricultural, livestock, bread/flour, books/newspapers, medical/pharmaceutical, education, banking/insurance, public transport, handmade carpets, gold bullion.
110 
111---
112 
113## Section 6 -- VAT return form structure
114 
115### Output
116 
117| Section | Description |
118|---|---|
119| Taxable sales | Sales at 10% combined |
120| Zero-rated | Exports |
121| Exempt | Exempt supplies |
122| VAT component | 9% portion |
123| Municipal tax | 1% portion |
124| Reverse charge output | Self-assessed on imported services |
125 
126### Input
127 
128| Section | Description |
129|---|---|
130| Input VAT on purchases | 9% component recoverable |
131| Input municipal on purchases | 1% component recoverable |
132| Customs VAT | Import VAT |
133| Reverse charge input | Self-assessed input |
134 
135### Net
136 
137Output minus input. Credit brought forward from prior season.
138 
139---
140 
141## Section 7 -- Reverse charge and imports
142 
143Services from non-resident: self-assess at 10% (9% + 1%). Claim input if taxable. Net zero.
144 
145Import of goods: VAT on CIF plus customs duties plus commercial profit tax. Collected by IRICA.
146 
147---
148 
149## Section 8 -- Deductibility and blocked input
150 
151Blocked: personal-use items, purchases for exempt supplies, entertainment (above limits), passenger vehicles for personal use, gifts/donations (above limits).
152 
153---
154 
155## Section 9 -- Filing, deadlines, and penalties
156 
157Filing is quarterly aligned to Solar Hijri seasons:
158 
159| Season | Months | Deadline (approx. Gregorian) |
160|---|---|---|
161| Spring | Farvardin-Khordad | ~July 6 |
162| Summer | Tir-Shahrivar | ~October 7 |
163| Autumn | Mehr-Azar | ~January 5 |
164| Winter | Dey-Esfand | ~April 4 |
165 
166| Violation | Penalty |
167|---|---|
168| Late filing | 10% of tax due |
169| Late payment | 2.5% per month |
170| Failure to register | Backdated assessment + penalties |
171 
172---
173 
174## Section 10 -- Edge cases, test suite, and escalation
175 
176### Edge cases
177 
178**EC1 -- VAT/municipal split.** Always report 9% and 1% separately.
179 
180**EC2 -- Free zone to mainland.** Treated as import. VAT at customs.
181 
182**EC3 -- Agricultural exemption.** Unprocessed wheat exempt. No output, no input recovery.
183 
184**EC4 -- Foreign SaaS.** Reverse charge at 10%. Payment restrictions do not change VAT treatment.
185 
186**EC5 -- Export with docs.** Zero-rated if export documentation exists.
187 
188### Test suite
189 
190**Test 1 -- Standard sale.** IRR 100M net. Expected: VAT IRR 9M, municipal IRR 1M, total IRR 10M.
191 
192**Test 2 -- Export.** IRR equivalent of USD 10,000. Expected: 0%. Input recoverable.
193 
194**Test 3 -- Reverse charge.** Indian consulting USD 5,000. Expected: 10% self-assessed. Net zero.
195 
196**Test 4 -- Exempt medical.** Medicines IRR 500M. Expected: no output. Input IRR 20M not recoverable.
197 
198**Test 5 -- Import.** CIF IRR 1B + duty IRR 100M. Expected: VAT IRR 99M (9%), municipal IRR 11M.
199 
200### Escalation protocol
201 
202```
203REVIEWER FLAG / ESCALATION REQUIRED
204[Standard format]
205```
206 
207### Out of scope -- direct tax
208 
209- Corporate income tax: 25%
210- Personal income tax: progressive
211- Social security: employer 23%, employee 7%
212 
213### Prohibitions
214 
215- NEVER apply rate other than 10% to standard taxable supplies
216- NEVER allow input recovery on exempt supplies
217- NEVER ignore municipal tax (1%) -- always collected with VAT
218- NEVER issue invoices without Farsi text
219- NEVER use Gregorian dates on official filings
220- NEVER compute numbers -- engine handles arithmetic
221 
222---
223 
224## Disclaimer
225 
226This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.
227 
228The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com).
229 

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Use this skill whenever asked to prepare, review, or classify transactions for an Iran VAT return. Trigger on phrases like "Iran VAT", "INTA tax", "Iran value added tax". Iran imposes VAT at 10% (9% VAT + 1% municipal) under the VAT Law of 2008 as amended. Iran uses the Solar Hijri calendar for all tax purposes. ALWAYS read this skill before handling any Iran VAT work.

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