Afghanistan's New VAT, Part 1: Invoice Matching or a Unitary Digital Invoice

100 Tax Notes International 1211 (Nov. 30.2020)

10 Pages Posted: 5 Apr 2021

See all articles by Richard Thompson Ainsworth

Richard Thompson Ainsworth

NYU - Graduate Tax Program; Boston University - School of Law

Musaad Alwohaibi

University of Florida Levin College of Law

Andrew Leahey

Independent

Yujin Li

Independent

Haseena Rahman

Independent

Date Written: 2020

Abstract

In the summer of 1990 two groundbreaking articles on business process re-engineering (BPR) were published, one by Thomas H. Davenport (a professor in information technology at Babson College) in the MIT Sloan Management Review, the other by Michael Hammer (a professor of computer science at MIT) in the Harvard Business Review. BPR is a management strategy that analyzes IT-intensive workflow designs and business processes within an organization.

On December 21, 2020 (Jadi 1, 1399) Afghanistan was scheduled to implement a 10% VAT. It has been delayed one year by the pandemic. When it does implement, Afghanistan will have significant workflow design and business process decisions to make. There will be problems, of course, but there will also be great opportunities. The question for Afghanistan is how it will design workflows and business processes with the technological capabilities we have today.

These papers undertake a limited (comparative jurisdictional) study of VAT invoices. Its methodology is to apply BPR principles to the invoice function of a credit-invoice VAT. An assessment is offered on where the leading edge of the invoice design element of VAT practice is today. The hope is that this analysis will be found useful in Afghanistan, or another jurisdiction newly adopting a VAT.

Keywords: BPR, VAT, Business Process re-engineering, Value Added Tax, Thomas H. Davenport, Michael Hammer, VAT Fraud, Fake invoices, Invoice-matching, Unitary digital invoice, Fiscal invoice, Fiji, Sandeep Dosanjh, Pardeep Dosanjh, Fraud bot, Shanghai fraud

Suggested Citation

Ainsworth, Richard Thompson and Alwohaibi, Musaad and Leahey, Andrew and Li, Yujin and Rahman, Haseena, Afghanistan's New VAT, Part 1: Invoice Matching or a Unitary Digital Invoice (2020). 100 Tax Notes International 1211 (Nov. 30.2020), Available at SSRN: https://ssrn.com/abstract=3819431 or http://dx.doi.org/10.2139/ssrn.3819431

Richard Thompson Ainsworth (Contact Author)

NYU - Graduate Tax Program ( email )

Bobst Library, E-resource Acquisitions
20 Cooper Square 3rd Floor
New York, NY 10003-711
United States

Boston University - School of Law ( email )

765 Commonwealth Avenue
Boston, MA 02215
United States

Musaad Alwohaibi

University of Florida Levin College of Law ( email )

P.O. Box 117625
Gainesville, FL 32611-7625
United States

Andrew Leahey

Independent ( email )

Yujin Li

Independent ( email )

Haseena Rahman

Independent ( email )

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