Cancellation of the strange decree of the Tax Affairs Organization after 6 years
The General Board of the Court of Administrative Justice found the decision of the Tax Affairs Organization to collect value added tax from those who use supplementary medical insurance illegal and annulled it.
Bazar News – The Tax Affairs Organization announced in a circular on the 9th of October 2019 that according to paragraph 9 of Article 12 of the Value Added Tax Law, exemption from taxes and value added duties is exclusive to the provision of medical services (human, animal and herbal) and It is a rehabilitation and support service and cannot be extended to other services such as treatment insurance and treatment completion services.
This circular was objected to by the General Administration of Natural Resources and Watershed Management of Golestan Province, and the aforementioned administration submitted a petition to the Court of Administrative Justice, while requesting the annulment of the Tax Affairs Organization’s circular, stating: “In paragraph 9 of Article 12 of the Value Added Tax Law, all types of drugs , medical consumables, medical services and rehabilitation and support services, have been emphasized and generalized, which shows the intention and will of the legislator in its inclusion in relation to all types of insurance and medical services.
In another part of this complaint, it is stated: In paragraph 9 of article 12, the word “types of services” is mentioned, so any interpretation that supplementary medical insurance services are outside of this paragraph is an interpretation that is arbitrary and contrary to the general text of the law.
In response to the submitted complaint, the Tax Affairs Organization announced: According to the provisions of Article 5 of the Value Added Tax Law and the circular dated 28 November 2007 of the Tax Affairs Organization, the provision of various insurance services, including treatment completion insurance, is subject to the payment of taxes and duties subject to the law. It is mentioned. Based on this, all persons subject to the value added tax system, including commercial insurance companies, when providing insurance services, are required to demand the related taxes and fees from the service recipients based on the aforementioned rules and regulations.
Finally, the General Board of the Court of Administrative Justice held a meeting on the 10th of August 2016 and while revoking the circular of the Tax Affairs Organization announced: According to paragraph 9 of Article 12 of the Value Added Tax Law, all kinds of drugs, medical consumables, medical services, rehabilitation services And support for the payment of value added tax has been declared exempt. Considering that in the last line of the contested circular, the payment of insurance services, treatment and completion of treatment are excluded from the mentioned exemption in the aforementioned law, therefore this part of the circular is contrary to the said law and its approval is beyond the authority of the Tax Affairs Organization. and the document is revoked according to Article 12 and Article 8 of the Law on Organizations and Procedures of the Court of Administrative Justice approved in 1392. The members of the General Board of the Court of Administrative Justice agreed to apply Article 13 of the aforementioned law and extend the revocation of the circular to the time of its approval only to direct payers of value added tax./Tasnim
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This post is written by anaddafi