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Afghanistan makes progress on VAT implementation

  • VAT
  • 31 March 2014 | Richard Asquith

Afghanistan makes progress on VAT implementation

The long running proposal to introduce an Afghan Value Added Tax regime has made significant progress under the supervision of the International Monetary Fund.

The last plans to introduce a Goods & Services Tax in 2007 to replace the Business Receipts Tax of between 2% and 10% failed. The BRT is essentially a turnover tax on companies which is inefficient to manage and is prone to fraud.

The latest effort comes as Afghanistan needs to underpin its volatile state revenues. At present, the main standard rate will be 10%, with some exemptions for basic foodstuffs and exports.

The Bill to introduce VAT is now in Parliament.  Other countries in Central Asia have now introduced full VAT systems - Kazhakstand 12%; Kyrgyzstan 12%.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.