According to the CEO of “Snapp“, this platform is exempt from tax according to the law, but the Tax Agency emphasizes that this exemption is for transport platforms and Snapp does not consider itself a transport platform.
According to Iran digital economy annotation, “Mohammed Khalaj”, the CEO of Snapp, announced in a tweet yesterday that this internet taxi has faced a serious threat of paying value added tax. According to Khalaj, according to the 2020 circular of the Tax Affairs Organization, Snapp users are exempted from paying value added tax.
The Tax Affairs Organization of 2020 clearly stated in a circular: “Given that the payment of value added tax will be related to the final consumer and according to the law of value added tax, passenger transportation services are not subject to value added tax regardless of the type, manner and quality of the service; therefore, real and legal persons who undertake to provide smart passenger transportation services.
If the transfer of the passenger subject to the contract of passenger transportation is transferred to the owner’s own cars and they receive a percentage of the transportation fare according to the regulations, the income derived from it is the income from passenger transportation and is subject to the exemption of paragraph (12) of article (12) of the aforementioned law. “
In another part of this series of tweets, Khalaj announced that Snapp has filed a complaint with the Supreme Court of Administrative Justice and hopes: “The court will support the survival of this business and the rights of its users by standing on the right side.”
The reaction of the Tax Agency to the tweet of the CEO of Snapp
After that, the Tax Affairs Organization reacted to Snapp CEO’s tweet. “Davoud Khodabandeh”, the director of public relations of this organization, wrote in a tweet: “If Snapp accepts to provide urban transportation services and undertakes its accessories, such as the safety of passengers, it will be exempt from value added tax according to the law. The Tax Affairs Organization has reflected the above explanation and necessary guidance to the company in numerous meetings.
Khodabandeh is referring to a part of the “Rules and Regulations of Snappbox”. In paragraph 12 of Article 3 of Snappbox rules, it is stated: “Users accept that Snapp is not a city transportation service, but only a software service that provides communication between the ordering user and the driver user in order to agree on carrying the parcel or making a trip.”
In another part of this paragraph, it is stated: “The company is not a guarantor of the competence, behavior and actions of the users in front of each other, and will not have any legal or criminal responsibility in this regard and the events during transportation or traveling.”
The part cited by the public relations manager of the Tax Affairs Organization is written in the “Rules and Regulations of Snappbox”, but it seems that the sentences are about “Snapp“. Previously, one of the representatives of the parliament named “Reza Hajipour” considered this action of the tax affairs organization as “illegal” and said: “The implementation of this tax will directly and indirectly cause inflation and inflation in the country and push people towards private cars. And the backwardness of the country in the direction of moving towards the development of the digital economy seeks its share.
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