VAT refunds to exporters should not be subject to a currency refund

The members of the specialized working group of the Dialogue Council made suggestions at the meeting in order to examine the exporters’ criticisms of the directive of the Tax Affairs Organization regarding the time of export exemptions and VAT refunds to exporters. کردن.

The implementation of part (1) of paragraph (c) of Note (8) of the Budget Law of 1998 has caused problems for exporters, which have been criticized. Ali Chaghrvand, Director of Business Research of the Dialogue Council, explained this issue: According to part (1) paragraph (c) of Note (8) of the Budget Law of 2009, any zero rate and tax exemptions for revenues from exports of goods and services and tax refunds And the levies subject to Article (13) of the Value Added Tax Law are applicable in cases for the performance of 1397 and 1398 when the currency obtained from export is returned to the economic cycle of the country according to the regulations announced by the Central Bank.

He continued: following this paragraph of the budget law, the Tax Affairs Organization issued a circular and notified the tax offices with the content that until the regulations and instructions are observed and all regulations are observed by taxpayers of any VAT refunds and value added duties only to exporters Refuse goods and services related to the financial periods of 1997 and 1998 this year.

In this regard, Mohammad Lahouti, President of the Confederation of Exports of Iran, also emphasized: Exporters who have exported their goods since January 1, 1997 have not received a single rial in value added tax, and if an exporter has circulated his capital twice in these months. , 20% of his resources are frozen with the Tax Administration, and this is a problem that executive bodies such as the Central Bank and the Tax Administration are unable to solve, because this restriction is provided in the budget law.

According to this economic activist, even with the instructions issued by the Tax Affairs Organization on September 4, this year, the problem will not be solved, because if an exporter has fulfilled 50% of the foreign exchange obligation within this 4-month period specified in the Central Bank’s instructions, The tax authority will review and pay VAT accordingly, this performance will be finalized, and if in the next quarter, the currency owed for the year 1997 is returned, it will no longer be refunded and the tax will be finalized.

Accordingly, Lahouti suggested that the Dialogue Council pursue through the heads of the three powers to cut the value-added link to the return of export-earned currency altogether, because value-added is not a tax exemption or incentive but an exporter’s right. On the other hand, 80% of the VAT can be refunded to the exporter on account and 20% of it can be subject to the return of the currency from the export.

In this regard, Samad Karimi, the representative of the Central Bank, believes that good measures have been taken so far to help exporters, including adjusting the export base and considering a 4-month deadline or giving a deadline for registering exports to Iraq and Afghanistan until the end of September. In addition, in the field of taxation, the Central Bank has considered 70%; That is, if an exporter returns 70 percent of the export currency to the economic cycle, it is subject to 100 percent tax exemption, and in less cases, the IRS will act accordingly.

He added: “The Central Bank and the Tax Affairs Organization have agreed that the Central Bank will provide information to the Tax Affairs Organization on a three-month-by-three basis so that the organization can start processing VAT refunds and granting tax exemptions.”

Finally, it was decided that the proposals of private sector activists for a final decision would be presented at a meeting of the Government-Private Sector Dialogue Council.

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