Regulations

VAT Exemption Confirmed for Production Machinery Under Article 39

Iran's Trade Development Organization has confirmed to Iran Customs that the procedure under Clause (A) of Article 39 of the Law on Permanent Provisions of the Country's Development Plans, granting value-added tax exemption for industrial and mining units importing production line machinery and equipment, remains valid as communicated in letter No. 121625/60 dated 1401/5/15, pending systemization of the process in the Comprehensive Trade System.

Effective from
30 December 2025
Issued by
Trade Development Organization of Iran
Reference
No. 6719359

Iran’s Trade Development Organization, through its Office of Export and Import Regulations, has responded to Iran Customs’s Import Office regarding the implementation procedure for Clause (A) of Article 39 of the Law on Permanent Provisions of the Country’s Development Plans. The provision grants value-added tax exemption for industrial and mining units importing machinery and equipment for production lines.

The organization confirmed, in reply to earlier correspondence (No. 991038/1404 dated 1404/7/14, with attached letter No. 655284 from the Machinery and Equipment Industries Office dated 1404/8/24), that the substance of letter No. 121625/60 dated 1401/5/15 — which established the procedure for applying the VAT exemption for import of production line machinery and equipment by permanent, authorized industrial and mining units — remains in effect until secondary notice, and until this process is implemented systemically. The correspondence follows a chain of prior inquiries, including a case involving a turbo compressor importer in Qazvin province that sought to apply the Article 39(A) exemption after goods had already cleared with full duty and charges paid, prompting review of how such requests should be handled going forward.

The Trade Development Organization requested that the Center for Innovation and Smart-Enablement and Security follow up on systemizing the exemption in the Comprehensive Trade System and report on the reason for any delay in implementation. Industrial and mining units seeking to apply the Article 39(A) VAT exemption for machinery and equipment imports should continue to follow the existing procedure under letter No. 121625/60 until the systemized process becomes available.

Key Details

  • Approval authority: Ministry of Industry, Mine and Trade
  • Responsible organization: Not specified
  • Classification: Circular
  • Affected procedure: Customs Clearance
  • Document number: 6719359
  • Unique identifier: 404100795793
  • Document date: December 8, 2025
  • Publication date: December 28, 2025
  • Effective date: December 30, 2025
  • Expiration date: Not specified

This summary is provided for orientation only. The official Persian text issued by the relevant Iranian authority is the governing version.