Afghanistan VAT / GST

VAT status and Business Receipts Tax

Afghanistan has enacted a VAT Law but, as of 2025, its commencement has been repeatedly postponed and it is not generally operational. In practice the consumption-type levy in force is the Business Receipts Tax (BRT), a tax on gross turnover with no input-credit mechanism.

• Operational VAT — No general VAT is currently operational; the VAT Law's entry into force has been deferred ((approx — confirm current commencement status with ARD)) (Value Added Tax Law (not yet in force))
• Legislated VAT standard rate (when in force) — 10% percent (Value Added Tax Law)
• Legislated VAT registration threshold — 150,000,000 AFN annual turnover AFN ((approx — confirm; applies only when VAT commences)) (Value Added Tax Law)
• Business Receipts Tax — general rate — 4% of gross receipts percent (Income Tax Law 2009)
• BRT — small restaurants — 2% of gross receipts percent ((approx — confirm sector classification)) (Income Tax Law 2009)
• BRT — hotels, large restaurants, club halls — 5% of gross receipts percent (Income Tax Law 2009)
• BRT — telecom / airlines — 5% of gross receipts (incl. telecom services fee components where applicable) percent ((approx — confirm)) (Income Tax Law 2009)
• BRT tax base — Total gross receipts (sales) before any deduction; no input credit (Income Tax Law 2009)
• BRT filing / payment frequency — Quarterly (Income Tax Law 2009)
• Reverse charge — Not applicable while VAT is not operational; BRT has no reverse-charge mechanism (Income Tax Law 2009)