Indirect tax - Kazakhstan

VAT is the principal indirect tax in Kazakhstan. The tax rate could be:
• 12% – applies to sales taking place (or deemed taking place) in Kazakhstan and imports
• 0% – applies to exports of goods from Kazakhstan, international transportation services, sales of approved goods to a company registered in a special economic zone.

Registered VAT payers must charge VAT on their sales and may claim a credit for input VAT indicated on the suppliers’ VAT invoices. VAT payer’s tax liability is the excess of output VAT over corresponding input VAT. A credit for input VAT cannot be claimed if it was paid in connection with sales exempt from VAT or sales regarded as occurred outside of Kazakhstan. In case of mixed sales (ie some subject to and some exempt from VAT), the amount of input VAT can be calculated proportionally or by tracing input VAT directly to the sales to which it relates.

The chosen method should be indicated in the taxpayer’s tax accounting policy and cannot be changed during a calendar year. VAT charged on a car must be capitalized into the initial cost of the car and then deducted through tax depreciation charges. If a foreign non-established company provides services to a registered VAT payer, these services need to be tested for whether or not they are deemed provided in Kazakhstan for VAT purposes. If a particular service is deemed provided in Kazakhstan for VAT purposes, the buyer (ie Kazakh registered VAT payer) should self-charge VAT on the service fees.

VAT refund
Input VAT incurred in connection with exports subject to VAT at 0% can be claimed for refund. Excess of input VAT over corresponding output VAT is refundable subject to conditions and exceptions. In practice, the tax authorities tend to deny a refund for any formal reason. Refund can be claimed within the statute of limitation of 5 years. Past this period, the refund option expires, but the excess can still be carried forward indefinitely to offset future VAT liability.

Registration as a VAT payer becomes mandatory if taxable sales exceed approximately USD 135,000 during calendar year. VAT registration is optional for all others. Foreign suppliers of electronic services and foreign online retailers must register regardless of the limit.

A regular foreign company cannot register as a VAT payer until it has set up a branch or representative office in Kazakhstan. Foreign suppliers of electronic services and foreign online retailers selling services/goods to customers resident in Kazakhstan must registers as a VAT payer.

Yes. Foreign suppliers of electronic services and foreign online retailers selling services/goods to customers resident in Kazakhstan must pay VAT in Kazakhstan. The applicable rate is 12%. This rule applies to sales to Kazakh customers who are individuals, not legal entities/businesses. Such foreign suppliers cannot claim a credit for input VAT incurred in Kazakhstan.

Not applicable. 

VAT returns are due on quarterly basis. The deadline for a regular VAT return is the 15th day of the second month, following the quarter reported. The deadline for the payment of tax liability is the 25th day of the second month, following the quarter reported.
Foreign suppliers of electronic services and foreign online retailers are not required to file VAT returns. The deadline for the payment of tax liability is the 25th day of the second month, following the quarter reported.

A default surcharge penalty may be imposed by the tax authority if VAT returns are not submitted on time, or the related tax is not paid by the due date. For the first late submission, the tax authority will issue a notification with the warning to the tax payer. If another submission or payment is late within the next 12 months, a fixed percentage penalty is imposed on that occasion. Failure to pay taxes on time is punished by imposing, under certain circumstances, penalties and late payment interest.

Businesses that import goods from the territory of Eurasian Economic Union should submit additional VAT forms to the tax authorities.

Yes. A range of penalties can be imposed where businesses do not comply with the VAT rules. Administrative penalties and interest can be applied for errors and omissions made on tax returns. Penalties can also be applied where the business has failed to maintain adequate records, document securing, etc. Criminal proceedings may be brought in the case of more serious matters.

No, only registered VAT payers can claim a credit for input VAT incurred in Kazakhstan.
Foreign suppliers of electronic services and foreign online retailers cannot claim a credit for input VAT incurred in Kazakhstan.

What information must a VAT invoice show? VAT invoice should show the following information:
• number of invoice in Arabic numerals only
• date of sale (if invoice issued electronically)
• date when VAT invoice was issued
• address of the seller and buyer
• status of consignor or consignee (if applicable)
• code of the foreign currency and exchange rate (if applicable)
• business identification number of the seller and buyer
• number of the seller’s VAT registration certificate
• name of the services/goods sold
• the amount of taxable (non-taxable) sale
• VAT rate
• VAT amount
• total amount inclusive of VAT.

Effective from 1 January 2018, all VAT payers are obliged to issue electronic VAT invoices (ESF). E-invoicing is carried out via the E-invoicing information system (EIIS). The EIIS’ functionality provides for e-invoice issuance, submission, registration, acceptance, processing, delivery, and storage.
The e-invoice must be issued within 15 calendar days from the date of taxable turnover. The e-invoice must be issued in the format approved by the Decree and must be signed with the taxpayer’s e-signature.

Foreign suppliers of electronic services and foreign online retailers selling services/goods are not required to issue VAT invoices.

SAF-T was introduced in 2019. Filing is voluntary so far.