Refund of taxes and duties on goods carried by travelers and of tickets for international flights of foreign tourists, purchased from Iranian airlines.

Nouraei and Mostafavi Law Offices – 27 January 2022-Tehran-Iran – Pursuant to resolution No. 34560 / T59381 dated 1400/10/28 (18 January 2022) of the Council of Ministers, according to the article 11 of the Law on Value Added Tax (VAT), the regulation on tax and duties refunds for travelers and for international flight tickets purchased by foreign tourists from Iranian airlines was approved.

By virtue of this regulation, the traveler as a real person means both Iranian and foreign nationals, and foreign tourists who leave through the official ports of the country. A foreign tourist is a non-resident natural person who resides in Iran for purposes other than work or any economic activity. Excerpts of the decree:

*The necessary conditions and documents for refunding taxes and duties are as follows: 1-The purchase of goods by travelers or the purchase of international flight tickets by foreign tourists from Iranian airlines. 2- Not more than two months shall have passed from the date of purchase of the goods (stated in the invoice) to the date of departure from the country. (Plane tickets are not subject to this clause) 3- Original valid passport, visa, ticket, and other documents for leaving the country (as the case may be).

*If the total value of the goods carried by the travelers is more than two hundred and fifty million (250,000,000) Rials, the relevant authorities are obliged to inspect and match the said goods with the relevant invoice.

*Refund of taxes and duties for Iranian travelers will be paid in cash or through the banking system and, for foreign travelers will be paid based on the country’s currency and with a receipt from the country’s Tax Affairs Organization.

*Refund of the funds subject to this regulation, will be done by the said organization, at the latest before the time of departure of the traveler or tourist from the country. The organization may delegate some of its responsibilities related to VAT duty refunds to the relevant authorities.

* In order to facilitate and expedite the implementation of the provisions of this regulation, tax and duty refund counters will be established at official exit ports.

* Prohibited goods according to the list announced by the competent legal authorities will not be covered by this regulation.

Source: Iranian Official Gazette, dated 1400/11/05 (25 January 2022)

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