Almost a year ago, Kazakhstan introduced VAT which the foreign companies should pay for goods and services supplied electronically to individuals in Kazakhstan. According to new Section 25 of the Tax Code, the VAT obligation related to electronic supplies of goods and services arises if:

    • company’s name,
    • taxpayer’s number in the country of residence (if any),
    • public number of company’s incorporation in the country of residence,
    • banking requisites for VAT payment, postal address and e-mail.

It is worth noting that the Kazakhstani Parliament considers a draft law

 and plans to add the foreign company’s Merchant ID

 number and requisites for payment or money transfer receipt to the list of data required for conditional registration

.

In addition, the draft law aims to ensure the tax administration of VAT payable due to electronically supplied goods and services to Kazakhstani individuals. For these purposes, tax authorities are entitled to share the information provided by foreign companies for conditional registration with banks, organisations engaged in banking activities, and payments systems. These organisations, in turn, have additional obligations: they should give tax authorities the information about payments and money transfers made in favour of foreign companies. According to the draft law, the information will be exchanged between tax bodies and banks, organisations carrying out banking activities, and payment systems once yearly after the end of the reportable year.

While the draft law is under consideration, according to the Section 25 of Tax Code, the foreign company have obligations to register, calculate and quarterly pay VAT at the rate of 12% to the cost of electronically supplied goods and(or) services. At the same time, no invoicing and tax reporting obligations arise. 

The official information about VAT obligations of foreign companies applicable to electronically supplied goods and services is downloadable from . The information on the official website of the Kazakhstani State Revenue Committee is limited to Tax Code provisions; and no additional details or official clarifications are available for the foreign companies.