Take 10% Iranian VAT off a price
Divide the total by 1.1, or take one eleventh of it as the tax. 110 including VAT at 10% is 100 before VAT and 10 of tax. Subtracting 10% instead gives 99, which is one short — the error is the rate squared, so 1% of the amount before VAT. Iran's standard rate rose from 9% to 10% in 2024, so an invoice from before then carries the older figure.
The same amount at each Iranian rate
| Standard | 10.00% | 1/11 | IRR 100.00 | IRR 10.00 | IRR 110.00 |
An estimate, not legal advice. Rules vary by jurisdiction and change over time. Check the current position with a qualified professional before relying on it.
10/110 reduces to 1/11, which is the tidiest fraction of any rate in this catalogue after 20%.
Subtracting 10% from a gross price understates the net by 1% of itself.
The rate was 9% until 2024, and its fraction was the far less friendly 9/109.
How it works
The 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.
What it assumes
- 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.
Common questions
Why was 9% the harder rate to work with?
Because 9/109 does not reduce — 109 is prime, so there is no shortcut for taking 9% back out of a price and the division has to be done as it stands. 10% gives exactly 1/11. Anyone reworking a pre-1403 invoice is therefore doing harder arithmetic than the same job today, which is the opposite of what a rate rise usually does to the people who have to apply it.
Is Iranian VAT going up to 12%?
It was proposed and then dropped. A budget bill would have raised the rate from 10% to 12% with the extra revenue returned to households through electronic food vouchers; parliament revised it back to 10% before approval. So 10% is the rate in force, and the direction of travel is worth knowing about rather than planning around.
Sources
Method written and checked by Tessalor on Jul 31, 2026.
The full method, worked example and every assumption behind this figure are on Iranian VAT Calculator.