VAT Awareness Seminar

Moore Afghanistan & Afghanistan Builders Association complete a VAT Awareness Seminar

June 17, 2021
Kabul, Afghanistan

Moore Afghanistan in collaboration with Afghanistan Builders Association (ABA), organized a free Value Added Tax (VAT) awareness seminar on 17 June 2021. VAT in Afghanistan is scheduled to come into force on 21 December 2021, amplifying the importance of the event and its goal of increasing familiarity with the new law in both the private and public sectors. 

Afghanistan’s new VAT Law provides a standard VAT rate of 10% with a registration threshold of AFN 150 million turnovers per annum. Voluntary registration will also be allowed, but it will be subject to certain conditions. VAT replaces Business Receipts Tax (BRT) on imports and supplies made by VAT-registered persons; however, it will also be imposed on non-registered persons where BRT standards are met. VAT registrations are currently underway.

The new VAT law is a significant but relatively new development in Afghanistan. Thus, there are many ambiguities around the matter for all those impacted, especially the private sector. Moore Afghanistan’s qualified tax experts contributed to easing uncertainties by delivering a presentation and answering follow-up questions on Thursday, June 17. Additionally, the audience was allowed to directly raise their queries to government officials attending on behalf of the Ministry of Finance (MoF) and the Afghanistan Revenue Department (ARD). 

The event, which was joined by 30+ construction companies, introduced the new VAT law. But, more importantly, the attendees were briefed on the overall impact of VAT on the private sector and their role as a tax agent on behalf of MoF, collecting VAT and then submitting it to relevant tax authorities. Moore Afghanistan’s collaboration with ARD was an important step taken that achieved its goal of introducing Afghans to the new VAT Law and lay the groundwork for future collaboration between the public and private sector, promoting Public-Private Partnership (PPP) and getting a step closer towards the mutual goal of having a prosperous Afghanistan.