VAT Exemption for Transportation Services, Except Air Flights

Intercity and intracity transportation services (both cargo and passenger) as well as international land, rail and sea transportation services will be exempt from value added tax, an official with the Iranian National Tax Administration announced. 
“According to the Value Added Tax Law approved by the Iranian Parliament and set to take effect as of Jan. 3, the transportation services of cargo and passenger by air will be subject to a value added tax rate of 9%,” Mohammad Masihi was also quoted as saying by Mehr News Agency.  
The exemption from value added tax on food and agricultural imports will be removed as of Jan. 3, 2022. However, their supply to the domestic market will remain tax exempt just like their locally-produced counterparts, Tasnim News Agency reported earlier. 
According to a letter sent by the Iranian National Tax Administration to the Islamic Republic of Iran Customs Administration, food and agricultural products categorized under sections 1, 3 and 5 of Article A of Value Added Tax Law, namely all unprocessed agricultural products such as raw agricultural and horticultural products, medicinal plants, rangeland 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, pulses, soy and soy protein, edible oils (both vegetable oils and animal fats), baby formula, fertilized chicken egg and day-old chickens will be subject to a 9% value added tax as of Jan. 3, 2022.