VAT exemption for transport services, except air flights

Intercity and intra-city (freight and passenger) transport services as well as international land, rail and sea transport services will be exempt from value added tax, an official from Iran’s national tax administration said.
“According to the Value Added Tax Law approved by the Iranian Parliament and due to enter into force on January 3, air freight and passenger transport services will be subject to a value added tax rate of 9 % “, Mohammad Masihi said. also quoted by the Mehr news agency.
The value-added tax exemption on food and agricultural imports will be removed as of January 3, 2022. However, their supply in the domestic market will remain tax-free, as will their locally produced counterparts, reported earlier l Tasnim news agency.
According to a letter sent by the Iranian National Tax Administration to the Customs Administration of the Islamic Republic of Iran, food and agricultural products classified under Sections 1, 3 and 5 of Article A of the Tax Law on added value, i.e. all unprocessed agricultural products such as raw agricultural and horticultural products, medicinal plants, pastures and forest products (including timber), greenhouse crops (vegetables, cucurbits, flowers, plants and mushrooms) , seeds, seedlings, pesticides and fertilizers, milk, cheese, yogurt, poultry eggs, flour and bread, all types of meat and meat products, rice, legumes, soybeans and soy proteins, edible oils (both vegetable oils and animal fats), infant formula, fertilized chicken eggs and day-old chickens will be subject to a value added tax of 9%. until January 3, 2022.

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