Kazakhstan Value Added Tax

Standard VAT Rate

• The standard VAT rate is 16%, effective from January 1, 2025.
• It applies to the supply of goods, works, and services within Kazakhstan, as well as to imports.

Reduced VAT Rates

• A 10% VAT rate applies to the following categories:
  • Medical goods and services
  • Pharmaceuticals
  • Veterinary medicine

VAT-Exempt Activities

• The following activities are exempt from VAT:
  • Production and sale of agricultural products
  • Sale of aquaculture products
  • Media services and publications (newspapers, periodicals, etc.)
  • Educational and preschool services (if licensed)
  • Financial and insurance services
  • Rent and sale of residential premises
    
    
    

    VAT Registration Requirements

    • Mandatory VAT registration threshold: Annual turnover exceeding 15 million KZT.
    • Businesses below this threshold may voluntarily register for VAT.
    • Upon registration, a Business Identification Number (BIN) is required.
    • Non-residents conducting taxable transactions in Kazakhstan may be required to register for VAT through a tax representative.
    
    
    

    Taxable Transactions

    • VAT applies to:
      • Supply of goods and services within Kazakhstan
      • Imports into Kazakhstan
      • Sales between branches and representative offices if one of the parties is a VAT payer
    
    
    
    
    

    Imports and Reverse Charge VAT

    • Imported goods are subject to 16% VAT, payable at the time of customs clearance.
    • Services purchased from non-residents are subject to reverse charge VAT, with the Kazakh buyer acting as the tax agent responsible for calculating and paying VAT.
    
    
    

    VAT Invoices and Reporting

    • VAT-registered entities must issue electronic VAT invoices (e-invoices) using the government system.
    • VAT returns are filed monthly.
    • Filing deadline: 25th of the following month.
    • VAT must also be paid by the 25th of the following month.
    
    
    

    Input VAT and Deductions

    • Input VAT may be credited against output VAT if:
    • Goods/services are used for VATable activities
    • E-invoice is issued properly
    • Payment is supported by primary accounting documents
    
    
    

    Special VAT Regimes

    • Businesses operating in Special Economic Zones (SEZs) may be eligible for VAT exemption on specific transactions.
    • Entities involved in government-supported projects may also qualify for preferential VAT treatment under investment contracts.
    
    
    

    Administrative Aspects

    • VAT administration is managed by the State Revenue Committee (SRC) of the Ministry of Finance.
    • Audits and electronic tax monitoring may apply to large taxpayers.
    • Failure to comply with VAT rules may result in penalties and fines.