An Overview of the Seven Steps to Calling for VAT Registration
Seven stages of the call for registration of VAT taxpayers: The VAT law, the operational implementation of which dates back to September 2008, is one of the progressive laws in the field of taxation that has so far had effective consequences for the country’s economy. Creating sustainable sources of income to finance public services, especially urban infrastructure services and health services has been one of the most important consequences of the implementation of this law so far. VAT, while having an effective role in providing sustainable incomes, does not put double pressure on the productive and industrial sectors of the society, because according to the law, the payment of this type of tax is left to the final consumers. .
This law, which was approved by the Guardian Council in June 2008, obliges the country’s tax affairs organization to prepare the necessary regulations, instructions and executive rules for the implementation of the law. Accordingly, since 2008, the organization has invited all VAT payers to register in the relevant system (WWW.EVAT.IR) in seven stages. Article 18 of this law also obliges taxpayers to take action to submit the requested information of the said organization and complete the relevant forms in the manner determined and announced by the State Tax Affairs Organization.
In its first call in 2008, the Tax Affairs Organization of the country has invited natural and legal persons who meet at least one of the following conditions to register: a) All importers; B) all exporters; C) All economic actors whose total sales of goods and services in 2007 was three billion rials or more; D) All economic actors whose total sales of goods and services in the first five months of 1387, was one billion and two hundred and fifty million rials or more.
In the second stage of registration of VAT taxpayers, employees engaged in activities in any of the subjects listed in paragraph (a) of Article (96) of the Law on Direct Taxes (except for exempt activities subject to Article 12 of the Law on VAT) are included as follows: The second stage was the registration and implementation of this tax system: factories and production units for which an establishment permit and an operating license have been or will be issued by the relevant ministry; Mine operators; Providers of auditing, accounting and bookkeeping services as well as financial services; Employed certified public accountants and auditing firms members of the Iranian Society of Certified Public Accountants; Management and consulting service providers; Providers of a variety of IT services, computers including hardware, software and system design; Motels and hotels of three stars and above; Bankers, wholesalers, department stores, financial intermediaries, distributors of domestic and imported goods, and warehouse owners; Representatives of commercial and industrial enterprises, both domestic and foreign; Motorized and freight transport companies licensed by the relevant authorities of land, sea and air freight (with the exception of units that are engaged only in passenger transport); Engineering and consulting engineering institutes; advertising and marketing institutes.
In its third call, the Tax Affairs Organization included all natural and legal persons who, according to the conditions of the first and second stages of registration, were not subject to the implementation of the VAT system. Was subject to the third stage of registration and law enforcement.
The fourth call also included those economic actors who were considered to be engaged in activities subject to paragraph “b” of Article “96” of the Law on Direct Taxes. This group consisted of: owners of industrial workshops (both union and non-union with a minimum of three-phase electricity of 50 amps); Jewelry sellers of other ornamental metals (including platinum and silver); Sellers of hardware and other metals; Owners of reception halls and restaurants; Owners of motels, one-star hotels and apartment hotels; Owners of car shows and shops and real estate agencies; Owners of authorized car repair shops; Printers; Owners of notaries; Owners of computer communication centers, communication service offices (mobile subscriber service offices and postal agencies) and e-government service offices (+10 police) and city e-service offices; Owners of travel and tourism services offices; Owners of cinemas, theaters and places of entertainment and sports.
In the fifth stage of registration, the Tax Affairs Organization included VAT payers in the registration of those legal entities. In the first, second, third and fourth stages of registration, they were not subject to the implementation of the VAT system, and in each of them. In 1387, 1388 or 1389, the total sale of goods and services was one billion rials. According to the call of the fourth stage, also all legal entities that were created, established and registered before or after 1390 and did not meet the conditions mentioned in the previous calls, if the total sales of goods and services in 1390 or years Then, reaching one billion rials and more, from the first tax period after reaching the mentioned threshold, they were subject to the fifth stage of registration and implementation of the law.
Chelokbabis, dining halls, traditional cafeterias and grocery chains with a single ownership or a single brand name regardless of the place of business and the type of license were also among the groups in the sixth stage of law enforcement. They were called upon to pay VAT.
In the latest call, the Tax Affairs Organization has invited these groups to register in the VAT system: all active legal entities with any volume of sales or income (goods and services) that, according to previous calls, have been implemented so far. If the law is not called, they will be subject to law enforcement.
Legal entities that are created, established and registered after the date of implementation of the call or start operating, in case of activity with any volume of sales or income (goods and services) from the first tax period after the start of operation (supply) Goods and services) are subject to law enforcement. The text of the announcement of the call for the seventh stage of registration of VAT taxpayers emphasizes that economic actors who are eligible for the first to sixth stages of registration and implementation of the VAT law, even if they comply with the conditions of the seventh stage of registration of this The tax system will be among the taxpayers subject to the previous stages of registration and implementation of the law and will be obliged to implement the regulations from the date of inclusion of the relevant call.
In all these announcements and calls, the Tax Affairs Organization of the country has provided the necessary instructions for registering VAT taxpayers in the WWW.EVAT.IR system. VAT taxpayers can also refer to the mentioned system or in person to the relevant departments of tax affairs of the relevant province and city to receive free training on this type of tax.
A look at the volume of tax revenues obtained from the VAT law and the effective consequences of this law in areas such as municipal and infrastructure services, health services and other welfare services shows the successful planning and performance of the tax administration for accurate implementation. There is a VAT law. Therefore, it is expected that with the expansion of the scope of VAT taxpayers and also the permanence of the VAT law, the way to get rid of the oil economy will be smoother and the vulnerability of the country’s economic system to external shocks and fluctuations will be reduced forever.