Iran's National Tax Administration has called on financial experts, tech companies and labs to collaborate in improving the process of evaluating the quality of data collected from POS terminals.
"As per the law to tax transactions via POS terminals and payment gateways, we have urged experts and laboratories setting norms and conducting quality control to help INTA," Kourosh Mohammadi, head of INTA's Regulation Center, was quoted as saying by ISNA.
Mohammadi noted that a new tax ecosystem will include more players, mainly to help INTA ascertain data collection modules from POS terminals plus their validity.
The law on taxing trade via POS terminals and payment gateways came into effect in mid-January. As such, businesses wanting to apply for POS or other payment gateways have to first file their tax returns and those who already own the gadgets are automatically liable for tax.
The law has been revised to improve INTA’s supervision over transactions to curb tax evasion and fraud particularly in the high income brackets like lawyers, physicians and realtors many of them infamous for evading tax.
The measures are also designed to curb illegal activities using rented payment gateways. The central bank is hopeful that the measures will help the regulator better control money laundering and online betting because owners of the gateways are accountable and must pay tax.
Guilds have long been under criticism for demanding cash from customers and dodging official banking channels to avoid paying tax. This has rendered tracking their income difficult if not impossible. Officials say by looking into transactions via POS the veracity of tax returns would be enhanced.
So far fifteen guilds, including 50 occupations, are required to use POS machines and issue receipts for the services and goods offered.
Occupations that are subject to the law include, lawyers, legal advisors, family consultants, centers offering notary public services, real estate agents, reception halls, eateries, including fast food and traditional restaurants, coffee shops, catering centers and cafes, hotels and hotel apartments.
Also on the list are motels, auto dealerships, beauty salons, confectioneries, fresh juice outlets, fruit and vegetable shops, as well as sports and cultural complexes, stationery shops, gaming centers and communications service providers, including Police+10 centers and the government’s public service offices.
