🇮🇶 Republic of Iraq
Sales Tax 15% — Full compliance with General Commission for Taxes (GCT) requirements
Sales Tax in Iraq
Iraq operates a sales tax system — not a VAT system — at a standard rate of 15%, administered by the General Commission for Taxes (GCT) under the Ministry of Finance. Sales tax is levied on goods and services at the point of sale. Regulations may differ in the Kurdistan Region of Iraq. The Iraqi Dinar uses 3 decimal places (Fils), and XiKey handles this precision correctly in all calculations and invoices.
- 15% standard sales tax rate
- General Commission for Taxes (GCT) compliant
- IQD with ع.د Arabic symbol
- 3 decimal places (Fils: 1 IQD = 1,000 Fils)
- Corporate tax support
- Arabic invoices with sequential numbering
Iraq Compliance Requirements
Full support for Iraq's sales tax system
Sales Tax, Not VAT
Iraq applies a sales tax system, not VAT. There is no input tax credit mechanism as in VAT countries. XiKey understands this distinction and applies correct tax calculation at the point of sale without input tax deduction.
IQD 3-Decimal Precision
The Iraqi Dinar uses 3 decimal places (Fils). XiKey handles this precision correctly in all calculations, invoices, and sales tax reports, with support for the large amounts common in Iraqi pricing.
GCT Invoice Requirements
The GCT requires invoices to include: supplier name and registration number, invoice date and sequential numbering, Arabic description of goods and services, taxable amount, sales tax rate and amount.
Iraq-Specific Notes
Growing Iraqi Market
Iraq is a large and growing market undergoing rapid modernization of commercial infrastructure. Iraq applies sales tax rather than VAT, and regulations may differ in the Kurdistan Region. XiKey handles the Iraqi Dinar with correct Fils precision and supports the Arabic invoicing required by the General Commission for Taxes.
| Item | Details |
|---|---|
| Tax Type | Sales Tax (not VAT) |
| Standard Rate | 15% |
| Reduced Rates | Basic food and medicine — specific exemptions |
| Exchange Rate | 1 USD = ~1,310 IQD (Central Bank managed rate) |
| Tax Authority | GCT — General Commission for Taxes |
Ready to Deploy in Iraq?
XiKey is ready to run in Iraq today — 15% sales tax, GCT-compliant invoicing, and IQD with 3-decimal Fils precision.