Kazakhstan Kazakhstan

Goods

Web: Kazakhstan’s Tax Agency

 

VAT Standard rate 

12%

 

Zero VAT rate

Turnover taxed at 0% VAT includes:

  • Export sales of goods;
  • Transborder transportation services;
  • Sales of oil and lubricants by airports when fueling aircraft of an overseas air carrier engaged in international transportation;
  • Sales of goods to special economic zones;
  • Sale of fine gold.

 

Thresholds

 

Deductible VAT 

  • Export of goods subject to a zero rate;
  • VAT paid on goods, works, services purchased at the expense of grant funds;
  • Implementation of transborder transportation services taxed at a zero rate.

Registration procedure

For conditional registration as a taxpayer, an overseas corporate body sends a confirmation letter by mail on paper to the tax authority indicating:

  • the full name of the overseas corporate body;
  • tax registration number (or it’s equivalent), if there is such a number in the country of establishment or the country of residence of the non-resident;
  • number of state registration (or its equivalent) in the country of establishment of the non-resident or the country of residence of the non-resident;
  • bank details from which the value-added tax will be paid when carrying out electronic trade in goods, providing services in the electronic form to individuals;
  • postal details (contact email address, address of location in the country of establishment, or country of residence of a non-resident).

Tax representative

A simplified registration procedure has been introduced for overseas companies, so there is no need to appoint a tax representative. However, if necessary, you can always contact a tax specialist.

Keeping records

VAT filing and payment

To determine the amount of tax, the turnover must be converted into tenge. The exchange rate is calculated on the last working day preceding the date of receipt of payment for the goods.

An overseas corporate body is obliged to pay the calculated value-added tax in the implementation of electronic trade in goods to individuals to the budget, for each quarter no later than the 25th day of the 2nd month following the reporting period.

Penalties

The Administrative Offences Code imposes administrative penalties for non-compliance with tax regulations, including the following:

  • under-declaration of taxes — 20% to 80% of the under-declared amount;
  • failure to withhold taxes — 20% to 50% of the non-withheld tax.

Interest is charged on late tax payments at a rate equal to 1.25 times the National Bank’s base rate (currently 9%) for each day of the delay.

Criminal liability is generally deemed to have committed the crime of tax evasion when underpaid tax exceeds 50,000 MCI (approximately US$354,000 in 2021). Tax evasion includes failing to submit a declaration. The Criminal Code provides for individuals who have committed a tax offense to be exempted from criminal liability if they voluntarily pay taxes and other amounts due to the budget and acknowledge that they are at fault.

Digital services

From January 1, 2022, the provisions of the Tax Code on the obligations of overseas Internet companies to pay VAT on provided services to individuals located in Kazakhstan come into force.

Web: Tax Agency

 

VAT Standard rate

The VAT rate is 12%

 

E-services list

The definition of electronic services has been introduced into the Tax Code in line with the definition provided by EAEU Protocol No. 09- 23/пр from 27-29 November 2019 (“EAEU Protocol”).

Accordingly, e-services in Kazakhstan include:

  • Software and database licenses via the Internet: remote access, updates, and additional functions. This item also includes online games;
  • Advertising services provided on the Internet, including using web-based software and databases; advertising space on the Internet. As well as services for finding potential clients and information about them;
  • Offers to buy services on the Internet;
  • Support services using information technology and web-based platforms to allow buyers and sellers to make contact and conclude deals including:
  • A real-time Internet trading platform allowing potential buyers to bid and automatically notifying parties of a sale;
  • Provide and/or maintain a commercial/personal Internet presence; website/web page support; access to the same and provide read-write access;
  • Data storage and digital processing provided the person providing data has access to the data on the Internet;
  • Online computing capacity to place information in data systems;
  • Domain name and hosting services;
  • Remote system administration of data systems and websites;
  • Services performed automatically through the Internet once the purchaser inputs data; automated data searches and data sorting through data and telecommunication networks including:
  • Real-time stock exchange summaries;
  • Real-time automated translation;
  • Web-based statistics management;
  • Rights to use e-books/other e-publications, information/educational materials, images, music, and audio-visual content through the Internet, including remote access to the same;
  • Access to search engine functions.

Pieces of evidence

A digital service is considered taxable in Kazakhstan if one of the following conditions is met:

  • The place of residence of the individual purchaser is recognized as the Republic of Kazakhstan;
  • The bank in which a bank account is opened used by a buyer-individual to pay for services, or by an electronic money operator through which an individual-buyer pays for services, is located on the territory of the Republic of Kazakhstan;
  • The IP of the individual purchaser used when purchasing services is registered in the Republic of Kazakhstan;
  • The international country code of the telephone number (including mobile) used to purchase or pay for services belongs to the Republic of Kazakhstan (+7).

Registration procedure

A special simplified registration system has been introduced for online sellers and e-service providers. To do this, you need to send a confirmation letter containing basic information about the company.

Tax representative

A representative is not required because a special, simplified system for fulfilling tax obligations has been introduced for overseas companies.

VAT filing and payment

The cost of digital services provided to individuals in overseas currency is converted into tenge using the market exchange rate determined on the last working day preceding the date of receipt of payment.

A foreign legal entity must pay the calculated value-added tax according to the details of the tax agency for each quarter no later than the 25th day of the 2nd month following the reporting period.

Penalties

The penalty is accrued for each day of delay in the fulfillment of the tax duty to pay taxes and payments to the budget, starting from the day following the day of the tax payment deadline in the amount of 1.25 times the base rate of the National Bank of the Republic of Kazakhstan, for each day of delay.