Announcement regarding the introduction of a "digital tax" on the services of foreign Internet companies

From January 1, 2022, the provisions of the Tax Code on the obligations of foreign Internet companies to pay VAT on goods sold, provided services to individuals located in Kazakhstan come into force.

The Ministry of National Economy reports that all foreign companies that sell services and goods through online platforms will be required to pay VAT to the Kazakh budget.

The VAT rate is 12% on the amount of goods and services sold. This will not affect Kazakhstani payers.

“The payment procedure will be very simple. Companies will not register for tax purposes. In a simplified manner, they send a letter to the tax authorities and notify them of their readiness to pay VAT, ”said Vice Minister of the Ministry of National Economy Azamat Amrin.

Administration is carried out on the basis of data from second-tier banks on the amounts transferred in the context of foreign Internet companies.

For administration purposes, it is proposed to establish the concept of Merchant ID or MID, which is a unique set of characters that identify a foreign company as a recipient of payment and / or money transfer using payment systems.

Merchant ID is one of the details provided by foreign Internet companies by which banks will identify the corresponding payments and money transfers.

This is an international practice. When considering the issue, the international experience of both European countries and the experience of the nearest neighbors - Russia and Belarus was studied.

According to the forecasts of the Ministry of National Economy, budget revenues from this VAT tax will amount to 2 billion tenge per year.

Recall, on November 25, 2021, the Senate adopted amendments to the Tax Code, which provide for the introduction of a digital tax on goods sold via the Internet.