4.4.3. Value added tax

What is the value added tax?

According to Article 205 of the Tax Code of the Republic of Kazakhstan, VAT is a payment to the budget of a part of the cost of the taxable turnover on disposal, added in the process of production and circulation of goods (works, services), as well as payments when importing goods to the territory of the Republic of Kazakhstan. VAT payable to the budget on taxable turnover shall be determined as a difference between the amounts of VAT assessed to the disposed goods (works, services) and the amounts of VAT payable for the goods (works, services) received.

W ho is a VAT taxpayer?

According to Article 207 of the Tax Code, persons, who are registered or are obliged to register for VAT purposes in the Republic of Kazakhstan, shall be deemed the VAT taxpayers. The payers of VAT on import of goods shall be deemed persons, which import these goods in the territory of the Republic of Kazakhstan in accordance with the Customs legislation of the Republic of Kazakhstan.

What is a VAT taxable object?

According to Article 206 of the Tax Code, taxable turnover and taxable import shall be a VAT taxable object. Turnover on disposal of goods (works, services) in the Republic of Kazakhstan carried out by the VAT taxpayer, except for the turnover exempted from VAT, shall be deemed a taxable turnover. The goods being imported or imported in the territory of the Republic of Kazakhstan (except for the VAT exempted ones), subject to declaring in accordance with the Customs legislation of the Republic of Kazakhstan shall be deemed the taxable import.

What are the VAT rates?

According to Article 245 of the Tax Code, the VAT rate on taxable turnover and taxable import shall equal to 16%. A turnover on disposal of goods for export (except for export of non-ferrous metal and iron-and-steel scrap), as well as execution of works, rendering services associated with international transportation shall be subject to VAT at a zero rate.

Turnover on disposal of goods (works, services) as stipulated for by Articles 225 – 233 of the Tax Code and including, in particular, contributions to the authorized capital, financial services, property transfer to the financial leasing, exploration work shall be VAT exempted. According to Article 234 of the Tax Code, import of some goods, including import of goods by individuals in compliance with the duty-free import of goods standards, import of foreign currency, medical remedies and the other goods as stipulated for by the present Article shall be VAT free.

What is a procedure to pay value added tax?

According to Article 248 of the Tax Code, a VAT taxpayer shall pay a tax to the budget for each tax period before and on a day of established period to file the VAT return. VAT return for each tax period shall be filed not later than 15 day of a month following the tax period.

At the same time, a calendar month shall be deemed a tax period for value added tax, however, if a average monthly VAT amount payable to the budget for a previous quarter is less than 1000 monthly calculated indexes, then the quarter shall be deemed a tax period. For VAT taxpayers using the special tax regime for legal entities – producers of agricultural products, a tax year shall be deemed a tax period on VAT payable to the budget from the income gained from the activity the mentioned special tax regime is applied for.

VAT on import shall be paid on a day as determined by the Customs legislation of the Republic of Kazakhstan to pay the customs payments. At the same time a deadlines to pay VAT on import may be change in accordance with the procedure as stipulated for by the Tax Code.