# Iranian VAT Calculator

> Add or remove Iranian VAT at the 10% standard rate, in force since the Iranian year 1403. The fraction is exactly one eleventh, and the real trap is the toman rather than the arithmetic.

Use it: https://tessalor.com/en/country/iran-vat

This tool runs entirely in the browser. Nothing entered into it is uploaded.

## Formula

```
Adding VAT to a net amount:
  vat   = round(net x rate / 100)
  gross = net + vat

Removing VAT from a gross amount:
  vat = round(gross x rate / (100 + rate))
  net = gross - vat

Iranian rates and their VAT fractions:
  Standard from 1403   10%   1/11
  Standard to 1402      9%   9/109

A rise that made the arithmetic easier, which is
rare. 9/109 reduces to nothing; 1/11 is exact.

One toman is ten rials. The rate is identical in
both; only the magnitude changes.

round = to the nearest minor unit, half up.

Only the VAT is rounded. The third figure is derived
from the other two, so net + vat = gross exactly.
```

## Assumptions

- The standard rate is 10% and has applied since the start of the Iranian year 1403, on 20 March 2024. It was 9% before that, which is why the typed-rate field starts there rather than on nothing.
- Only the standard rate is offered as a band. The VAT Act sets specific rates for named goods — cigarettes, petrol, jet fuel — and the published figures for those disagree between sources, with no primary text available to settle them. A rate this tool cannot source is a rate it does not offer.
- One toman is ten rials. The tool applies a percentage and is therefore unit-agnostic; it formats through the rial because that is Iran's ISO currency, so a toman figure will carry a rial label. The number is right and the unit is whichever you typed.
- Rounding is half up with no option, as on every country tool here except UK VAT. Nothing Iranian is cited for an equivalent to the HMRC concession.
- Exempt supplies are outside the charge rather than taxed at nil, so their input tax is not recoverable. That distinction is not something this tool can compute.
- Iran's tax authority publishes mainly in Persian and English-language figures are largely secondary. Check anything here that a decision depends on.

## Inputs

| Name | Label | Type | Default | Range |
| --- | --- | --- | --- | --- |
| `amount` | Amount | currency | 100 | 0 to 1000000000 |
| `direction` | What to do with it | select | add |  |
| `band` | Rate band | select | standard |  |
| `rate` | Another rate | percent | 9 | 0 to 100 |

## Outputs

- `vatAmount` — VAT (currency), primary
- `netAmount` — Price before VAT (currency)
- `grossAmount` — Price including VAT (currency)
- `rateApplied` — Rate applied (percent)
- `fraction` — VAT fraction (text)

## Questions

### What is the VAT rate in Iran?

10%, since the start of the Iranian year 1403 on 20 March 2024. It was 9% before that, so an invoice from 1402 or earlier carries the older figure. A published list of supplies is exempt rather than taxed, and the VAT Act sets specific rates for a few named goods such as cigarettes and fuel.

### Is Iranian VAT worked out in toman or rial?

Either — the percentage is the same in both, because a proportion does not care what unit it counts. The rial is the legal currency and what invoices and returns are stated in; the toman is a customary unit worth ten rials and is what shop prices and menus use. What goes wrong is mixing them inside one calculation, which is out by a factor of ten and looks plausible.

### Did Iranian VAT go up?

Yes, from 9% to 10% at the start of the Iranian year 1403 in March 2024. A later budget bill proposed 12%, with the additional revenue returned to households through electronic food vouchers, and parliament revised that back to 10% before approval. So 10% is the rate in force and 12% is a proposal that did not survive.

### What is exempt from Iranian VAT?

A published list covering unprocessed agricultural produce, staple foods, medicines and medical services, education, publishing, and certain financial services. Exempt is not zero-rated — an exempt supply is outside the charge entirely and the input tax on making it cannot be recovered, which is a materially different position for the supplier even though both show no tax to the customer.

### Why does this tool not offer the tobacco and fuel rates?

Because the published figures disagree and none of them comes from a primary source. The previous Act is cited at 12% on cigarettes and 20% on fuel; the current one is cited at 15% and 25%. Offering a tax rate that cannot be sourced would be worse than offering none, so those go in the free rate field with whatever figure your own guidance gives.

## Sources

- [Value Added Tax Act (English translation)](https://en-economic.mfa.ir/en/cdk/func/getFile/file_ctp_id/602/file_id/184/file_field/cnt_file/file/Value+Added+Tax+Act.pdf/) — Ministry of Foreign Affairs of the Islamic Republic of Iran. Retrieved 2026-07-31.
- [Doing Business in Iran — taxation](https://www.uhy.com/sites/default/files/2024-10/Doing-Business-in-Iran.pdf) — UHY International, applies to 2026. Retrieved 2026-07-31.

## Variants

- [Is Iranian VAT worked out in toman or rial?](https://tessalor.com/en/country/iran-vat/toman-or-rial-for-iranian-vat)
- [How do I take 10% Iranian VAT off a price?](https://tessalor.com/en/country/iran-vat/remove-10-percent-vat-from-a-price)

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