For VAT purposes, taxable turnover is the total of practically all types of supplies (for example, sales, exchanges or gifts) of goods, work and services. Goods include practically all forms of property or property rights. Taxable supplies of services are any supplies of work or services that are made for consideration or made free of charge or anything that is performed for consideration and is not a supply of goods. Goods, works and services are subject to VAT if, under the place of supply rules, they are deemed to be supplied in Kazakhstan.
The place of supply of goods is deemed to be the following:
• Goods sent by the supplier, the recipient or a third party: the place where the transportation of the goods begins.
• For all other cases: the place where the goods are handed over to the purchaser.
The place of supply of work and services is based on the nature of the executed transactions. Work and services connected with immovable property (e.g., buildings and installations) are deemed to be supplied in Kazakhstan if such property is in Kazakhstan. The place of supply of certain services that are provided outside Kazakhstan is deemed to be in Kazakhstan if the purchaser of such services is in Kazakhstan. Such services include, but are not limited to, the following:
• The transfer of rights to use items of intellectual property, e.g., maintenance and software updates
• Provision of access to online resources
• Consulting
• Audit
• Engineering
• Legal
• Accounting
• Design
• Advertising and marketing services
• Staff provision
• Lease of movable property (other than means of transport)
• Agency services connected with the purchase of goods, work and services
• Consent to limit or terminate entrepreneurial activities for consideration
• Communication services
• Radio and television services
• Rent of freight wagons and containers
Effective use and enjoyment. To avoid instances of non-taxation or double taxation, jurisdictions can apply “use and enjoyment” rules that allow a service that is “used and enjoyed” in the jurisdiction to be taxed or prevent a service that is “used and enjoyed” outside the jurisdiction from being taxed. If a service is taxed in the jurisdiction under the “use and enjoyment” provisions, a non-established supplier of the service may be required to register for VAT in every jurisdiction where it has customers that are not taxable persons. In Kazakhstan, no services are subject to the “use and enjoyment” provisions.
Transfer of a going concern. Transfer of going concern rules do not apply in Kazakhstan. As such, VAT applies to all sales of a business or part of a business capable of separate operation including assets.
Transactions between related parties. In Kazakhstan, there are no specific rules that indicate the value for VAT purposes for transactions between related parties. However, there are transfer pricing controls (that also apply for VAT) that apply to transactions with both related and unrelated parties. If the tax authorities identify a deviation from the market/arm’s-length price on transactions between related parties, the tax authorities may assess additional taxes and administrative fines of up to 80% of understated tax liabilities. Also, per the transfer pricing law, taxable persons should maintain appropriate documentation supporting the prices used in transactions between related parties, which should be available upon the tax authorities’ request.
Also, for conditional VAT registration, a nonresident provider must mail a paper confirmation letter to the Kazakhstan tax authorities with, among other things, a list of details, including merchant ID data used for the receipt of payments and/or money transfers. A merchant ID is a unique set of symbols identifying a foreign company as the recipient of payment and/or a money transfer using payment systems.
A nonresident provider must assess VAT liability when carrying out e-commerce sales of goods and electronically supplied services to individuals if one of the following conditions is met:
• The buyer (an individual) lives in Kazakhstan.
• The bank in which a bank account is opened or used by an individual buyer to pay for services, or the electronic money operator through which the buyer (an individual) pays for services, is located in Kazakhstan.
• The network address of the buyer (an individual) that is used for the purchase of services is registered in Kazakhstan.
• The buyer uses a telephone number with the international country code assigned to Kazakhstan to purchase or pay for electronic services.
The value of e-commerce sales of goods and electronically supplied services to individuals in foreign currency must be converted into the Kazakhstan tenge (KZT), Kazakhstan’s domestic currency, at the market exchange rate set on the last working day preceding the date of receipt of payment for the goods or services.
A nonresident provider is generally not required to file VAT returns. However, a nonresident provider must pay the assessed VAT no later than the 25th day of the second month following the quarter in which goods and services were sold.
Nonresident providers are not required to issue Kazakhstan’s statutory VAT invoices for e-commerce sale of goods and electronically supplied services to individuals.
VAT will not be assessed on e-commerce sales of goods and electronically supplied services to individuals if:
• The value of goods or services is included in the customs value under the legislation of the Eurasian Economic Union (EAEU) (Kazakhstan, Armenia, Belarus, Kyrgyzstan and Russian Federation) or the customs legislation of Kazakhstan, according to which VAT on imported goods is paid to the state budget of Kazakhstan and is not refundable.
• The value of such goods or services is included in the amount of taxable imports, according to which VAT on imported goods from EAEU countries is paid to the state budget of Kazakhstan and is not refundable.
Additionally, VAT will not be assessed or paid for e-commerce sales of goods and electronically supplied services to individuals for the portion exceeding the value and/or weight norm determined under the customs legislation of the EAEU and/or Kazakhstan, according to which customs duties and taxes are paid in Kazakhstan in the form of a cumulative customs payment and are not refundable.
It should be noted that certain changes have been proposed in relation to conditional VAT in a new Tax Code of the Republic of Kazakhstan are planned to be introduced effective 1 January 2026 and in the current Tax Code (in 2025). At the time of preparing this chapter, these changes are still subject to further discussion and revision.
Regarding VAT for foreign companies that conduct electronic trade in goods or services supplied to individuals in electronic form, some of the changes are intended to obligate banks in Kazakhstan to provide the tax authorities with information on the total amounts of payments and transfers made to foreign companies engaged in such activities. Additionally, changes may be introduced to the methods for ensuring the fulfillment of tax obligations not met in a timely manner. Specifically, the authorities will have the right to restrict access for Kazakhstan users to the internet resources
D. Rates
The term “taxable supplies” refers to supplies of goods, work and services that are liable to a rate of VAT, including the zero-rate.
The VAT rates are:
• Standard rate: 12%
• Zero-rate: 0%
The standard rate of VAT applies to all supplies of goods or services unless a specific measure provides for the zero rate or an exemption.
For imports of goods by individuals under the simplified procedure, VAT may be paid as part of the aggregate customs payment, the amount of which is determined in accordance with the customs law of Kazakhstan.
Examples of goods and services taxable at 0%
• Export sales of goods, except for those that are exempt from VAT
• International transportation services
• Sale of oil and lubricants by airports and ground handling services providers when fueling aircraft of a foreign air carrier performing international flights
• Sale of refined gold to the National Bank or for export
• Sale of goods included in the list approved by the authorized body to the territory of Special Economic Zones
The term “exempt supplies” refers to supplies of goods, work and services not liable to VAT and that do not qualify for input tax deduction.
Examples of exempt supplies of goods and services
• Turnover associated with land for residential purposes and residential buildings (the exemption for residential buildings may be removed in 2026 under the new Tax Code)
• Specified financial services
• Services rendered by noncommercial organizations
• Services in the areas of culture, science and education
• Goods and services related to medical and veterinary activities (the exemption for the import and sale of medicines in the commercial sector may be removed in 2026 under the new Tax Code)
• Import of certain assets (based on a list is issued by the government), for example, space objects, equipment of ground-based space infrastructure facilities; goods imported by members of Astana-hub; and religious goods
• Goods imported by individuals not for entrepreneurial purposes (subject to certain limitations)
• Turnovers related to international transportation services
• Import of goods from the territory of a Eurasian Economic Union member country within the same legal entity (e.g., intra-entity transaction)
• Imports of raw cane sugar to stimulate the production of sugar
• Imports of chemicals (raw materials) to produce pesticides under certain conditions specified by the Tax Code
• Imports of works of art imported by non-state museums and approved by the list of authorized body in the field of culture in agreement with the central authorized body for state planning (effective 1 January 2023 to 1 January 2026)
• Goods, works and services on a gratuitous basis within the framework of charitable assistance by a nonprofit organization established in the form of a fund in accordance with the civil legislation of the Republic of Kazakhstan
• Sale of refined gold and/or silver by entities producing precious metals to entities producing jewelry and other products
• Household appliances and/or household electronic devices, as well as their components, included in the list approved by the authorized body, subject to the certain conditions (effective from 1 January 2023 to 1 January 2028)
Option to tax for exempt supplies. The option to tax exempt supplies is not available in Kazakhstan.
E. Time of supply
The time of supply is the date that a sale of goods, work or services is completed, which is the date on which the goods are shipped (transferred), work is performed, or services are rendered. The date of the performance of work or the rendering of services is the date of signing of an act of acceptance for work performed or services rendered.
For goods that are not shipped, the date of completion of a sale is the date on which ownership of the goods is transferred to the purchaser.
Deposits and prepayments. There are no special time of supply rules in Kazakhstan for deposits and prepayments. As such, the general time of supply rules apply (as outlined above).
Continuous supplies of services. The time of supply for certain continuous supplies is the last day of the calendar month in which the goods are delivered, work is performed, or services are rendered.
Goods sent on approval for sale or return. There are no special time of supply rules in Kazakhstan for supplies of goods sent on approval for sale or return. As such, the general time of supply rules apply (as outlined above).
Reverse-charge services. The reverse-charge mechanism is triggered by the purchase of certain services from a nonresident entity based on one of the following documents:
• Act of works (services) acceptance
• In the absence of the above, a document (except for the VAT invoice), confirming the performance of the work, with the document prepared in compliance with the Kazakhstan legislation on accounting and financial reporting
The date of signing of one of the above documents should be considered as the time of supply, when VAT is due to be accounted for on the supply by way of the reverse-charge mechanism.
Leased assets. There are no special time of supply rules in Kazakhstan for supplies of operational leases. As such, the general time of supply rules apply (as outlined above).
However, the time of supply rules for supplies of financial leases depends on the type of the arrangement, as per the following:
• The date of receipt of the periodic lease payment established by the leasing agreement, without taking into account the amount of remuneration
• The date of transferring the property to financial leasing
Imported goods. The time of supply is the date of importation of goods into Kazakhstan.
F. Recovery of VAT by taxable persons
The VAT liability of a taxable person equals the output tax (VAT charged by a taxable person) less input tax (VAT paid by a taxable person to its suppliers) in a reporting period.
VAT paid on services, work and goods purchased by a taxable person (input tax), including reverse-charge VAT paid and VAT paid at customs, is generally available for offset (credit) in determining a taxable person’s VAT liability to the budget. However, offsetting is not available for VAT incurred for the purpose of making supplies that are either exempt or deemed to be supplied outside Kazakhstan.
H. Invoicing
VAT invoices. In general, a VAT invoice is a compulsory document for taxable persons. No input tax deduction is allowed without an appropriate VAT invoice.
The cost of goods, work and services and the amount of VAT must be stated in the VAT invoice in the national currency of Kazakhstan, except for goods, work and services sold under foreigntrade contracts and in other specific circumstances provided for by law.
Nonresident providers of e-commerce sales of goods and electronically supplied services to individuals (B2C supplies) are not required to issue Kazakhstan’s statutory VAT invoices. See the Digital economy subsection above for further details.
Credit notes. A credit note requires an additional VAT invoice issued by a supplier of goods, work and services, as in such cases the adjustment of taxable turnover takes place.
The adjustment of the amount of taxable turnover shall take place in the tax period in which such adjustment took place.
The amount of taxable turnover can be adjusted if the cost of goods, works or services changes in certain circumstances, including the following:
• The goods are returned in whole or in part (except for the import of goods placed under the customs procedure of re-import, previously exported under the customs procedure of export)
• The conditions of a transaction change
• The price or amount of compensation for goods, work or services sold is changed
• The price discounts, sales discounts
• The return of packaging included in sales turnover
• Other cases, as a result of which there is a change in the amount of turnover
Adjustments to the taxable turnover amount can be made if both of the following conditions are satisfied:
• Accounting primary documentation is available.
• A corrected VAT invoice is issued or a cash register receipt (available in specified cases).
Electronic invoicing. Electronic invoicing is mandatory in Kazakhstan for all taxable persons.
Scope of electronic invoicing. For B2B, B2C and business-to-government (B2G) supplies, electronic invoicing is mandatory for all taxable persons in Kazakhstan. There is no threshold beyond which taxable persons are required to adopt electronic invoicing in Kazakhstan. The requirements related to electronic invoicing are the same as those for paper invoicing.
However, the issuance of an invoice is not required in certain cases, such as:
• Sale of goods, works, services for cash with the provision of a cash register receipt to the buyer and/or through service payment terminals, using payment cards
• Sale of goods, works, services to individuals, settlements for which are made by electronic money or with the use of means of electronic payment
• Documenting of passenger transportation by rail or air with a paper travel ticket, an electronic ticket or an electronic travel document
• Sale of goods, works, services to individuals for their personal use, etc.
Issuance of an electronic VAT invoice is only possible by using the official online system of the tax authorities, which is specifically designated for receiving and processing of electronic VAT invoices. Electronic VAT invoices have an established format and should be signed by means of electronic signature. Generally, electronic invoices should be issued within 15 calendar days from the date of a taxable turnover.
Simplified VAT invoices. Simplified VAT invoicing is not allowed in Kazakhstan. As such, full VAT invoices are required.
Self-billing. Self-billing is not allowed in Kazakhstan.
Proof of exports. To confirm the applicability of zero-rated VAT for turnover, the supplier must collect supporting documents that are stipulated in the tax law of Kazakhstan.
Foreign currency invoices. Values in VAT invoices should be indicated in the domestic currency, which is the Kazakhstan tenge (KZT). In certain cases, the invoice can additionally indicate the values in foreign currency.
Supplies to nontaxable persons. There are no special rules for VAT invoices issued to private consumers, and as such, full VAT invoices must be issued for all supplies.
Records. Records that must be held for VAT purposes in Kazakhstan include VAT returns, VAT invoices issued and received, contracts and acts of acceptances.
It is not completely clear in the VAT law whether VAT books and records should be kept in Kazakhstan or not. If VAT books and records are held outside of the country, they must be made readily available upon request of the tax authorities and easily accessible.
Record retention period. Records must be held for the entire period of statute of limitation, i.e., for three years for general taxable persons and five years for (i) large businesses categorized as such under the Entrepreneurial Code of Kazakhstan; (ii) taxable persons who carry out activities in accordance with subsoil use contracts; (iii) Kazakhstan tax residents who have controlled foreign companies.
For records dated 2019 and prior years, the record retention period is five years for all taxable persons.
Electronic archiving. Electronic archiving is allowed in Kazakhstan. All VAT returns and VAT invoices must be kept and archived electronically within the online system for electronic VAT return filing and have their own status (i.e., draft, filed, received). Other original support documents should be stored in paper (e.g., contracts, invoices, acts of acceptance) during the statute of limitations period.
I. Returns and payments
Periodic returns. Taxable persons must file a VAT return with the tax authorities for each tax period by the 15th day of the second month following the reporting tax period (i.e., a quarter). A VAT return for the import of goods into Kazakhstan from Eurasian Economic Union (EAEU) member countries must be filed with the tax authorities by the 20th day of the month following the tax period (month). Nonresident providers of e-commerce sales of goods and electronically supplied services to individuals (B2C supplies) are generally not required to file VAT returns. See the Digital economy subsection above for further details.
Periodic payments. The VAT due for the VAT return must be paid to the budget by the 25th day of the second month following the reporting tax period (quarter).The VAT due for the import of goods into Kazakhstan from other EAEU member countries must be paid to the budget by the 20th day of the month following the tax period (i.e., one month).
VAT on imported goods must be paid within deadlines specified by the customs law of Kazakhstan for the payment of customs payments.
VAT is paid by bank transfer to the bank account of the Ministry of Finance.
Nonresident providers of e-commerce sales of goods and electronically supplied services to individuals (B2C supplies) must pay the assessed VAT no later than the 25th day of the second month following the quarter in which goods and services were sold. For further details, see the subsection, Digital economy, above.