The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan (SRC MF RK) announces that, starting from January 1, 2022, a new section of the Tax Code comes into effect, regulating the procedure for value-added tax (VAT) for foreign companies conducting electronic commerce through online platforms or providing electronic services to individuals.

According to the new provisions, a foreign company must calculate and pay VAT in Kazakhstan if one of the following conditions is met:

• the buyer is a resident of Kazakhstan;
• the bank where the buyer holds an account used to pay for services, or the e-money operator processing the payment, is located in Kazakhstan;
• the buyer's IP address, used to access the services, is registered in Kazakhstan;
• the phone number (including mobile) used to purchase or pay for services has a Kazakhstan country code.

Therefore, a foreign company that conducts e-commerce or provides electronic services to individuals through its platform under these conditions is considered a VAT payer in Kazakhstan and must undergo conditional registration with the tax authority.

Conditional Registration Process: The foreign company sends a confirmation letter to the SRC MF RK by mail, specifying:

• the full name of the foreign company;
• tax registration number (or its equivalent), if available in the country of incorporation or residency;
• state registration number (or equivalent) in the country of incorporation or residency;
• bank details from which VAT payments will be made for electronic commerce or electronic services provided to individuals;
• postal details (official email address, physical address in the country of incorporation or residency).

To simplify the business process, foreign companies are not required to submit VAT tax reports or issue electronic invoices for these operations.

VAT Rates: The sale of goods and provision of electronic services by foreign companies are subject to a 12% VAT rate. Payments are made quarterly, based on the results of the quarter in which the goods were sold or services rendered, with deadlines on May 25, August 25, November 25, and February 25.
Source: State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan