Afghanistan will not implement an international standard Value Added Tax regime until 21 December 2022. The previous implementation date was December 2020.
There are 172 countries with VAT around the world.
This will eventually replace the 10% business receipt tax. There is also currently a reduced 2% rate. The introduction of the consumption tax was first raised in 2016. Return and payment requirements are to be based on monthly or quarterly VAT periods. The tax due by a registered person in respect of any VAT period is the amount of tax payable less the amount of tax creditable (input tax), with the possibility of a refund.
A VAT registration threshold of AFN 150m is planned, along with voluntary VAT registration.
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