Questions - answers that are important to know

Questions - answers that are important to know

  • • 1) Question: Until 2026, the sale of veterinary drugs was exempt from VAT, is such an exemption provided for in 2026?

    Answer: By the provisions of subparagraph 34) of Article 394 of the Tax Code, which was in force until January 1, 2026, sales of medicines used in the field of veterinary medicine were exempt from VAT. Similar provisions of the Tax Code, valid from January 1, 2026, are not provided.

    Thus, from January 1, 2026, there is no exemption from VAT for the sale of veterinary products, respectively, their sales turnover is subject to VAT in the generally established manner at a VAT rate of 16%.

     • 2) Question: the sale of medicines under the HOBMP is exempt from VAT, but in practice the buyer has the right to purchase medicines at co-payment at a higher price with reimbursement of part of the cost of such a medicine under the HOBMP from the budget. Is such a co-payment amount subject to VAT?

    Answer: From January 1, 2026, the sale of medicines within the framework of the guaranteed volume of free medical care (GOBMP), as well as for the treatment of orphan and socially significant diseases included in the List of Medicines (Decree of the Government of the Republic of Kazakhstan approved on December 31, 2025 No. 1203).

    The provisions of the Code of the Republic of Kazakhstan "On the health of the people and the health care system" (Health Code) provide that the HACCP is the amount of medical care provided at the expense of budgetary funds. At the same time, GOBMP is financed from the budget, and can also be carried out at the expense of citizens with co-payment carried out on a voluntary basis.

    Thus, based on the concept established by the Health Code, the HACCP provides for the amount of medical care provided at the expense of budgetary funds, and the co-payment is the payment of the difference in the cost of the drug and the HACCP at the expense of budgetary funds, carried out by the buyer on a voluntary basis.

    Accordingly, co-payment made voluntarily by the buyer for the difference in the cost of the drug and the amount of compensation under the GMSC is subject to VAT in the generally established manner without exemption.

     3) Question: One of the conditions for granting exemption from VAT is the existence of a contract for the supply of medicines within the framework of the HOBMP and compulsory health insurance, drawn up in accordance with the order of the Minister of Health of the Republic of Kazakhstan dated June 7, 2023 No. 110.

    In practice, public procurement of medicines is carried out after the actual import of goods, and therefore, the importer cannot apply VAT exemption directly when importing medicines subsequently sold under the GMP and compulsory health insurance

     

    Answer: From January 1, 2026, imports of medicines under the GMSC and compulsory health insurance, as well as for the treatment of orphan and socially significant diseases, are exempt from VAT on imports. At the same time, the List of Medicines (List), as well as the procedure for applying VAT exemptions for the import of medicines (Rules) were approved by Decree of the Government of the Republic of Kazakhstan dated December 31, 2025 No. 1203.

    One of the conditions for granting exemption from VAT according to the Rules is the existence of a contract for the supply of medicines under the GMSC and compulsory health insurance. At the same time, only the contract for the supply of medicines within the framework of the HOBMP and compulsory health insurance, drawn up in accordance with the order of the Minister of Health of the Republic of Kazakhstan dated June 7, 2023 No. 110, confirms that the sale of medicines is carried out within the framework of the HOBMP and compulsory health insurance.

    Thus, in the absence of a contract for the supply of medicines under the GMSC and compulsory health insurance, when importing medicines, VAT on imports is payable at a rate of 5%, if such medicines are included in the List of Medicines, Medical Devices, Components of Medical Devices, as well as technical auxiliary (compensatory) funds in accordance with the legislation of the Republic of Kazakhstan on social protection (List of medicines subject to 5%).

    Moreover, if medicines are not included in the List of medicines taxed at 5%, then VAT on imports is payable at a rate of 16%.

     

     

    • 4) Question: Are non-VAT health care taxpayers really required to write ESFs?

    Answer: from January 1, 2026, certain categories of VAT defaulters have an obligation to discharge the ESF.

    At the same time, in accordance with subparagraph 11) of paragraph 1 of Article 208 of the Tax Code, these categories included taxpayers providing medical services for the sale of medicines, medical devices, components of medical devices, as well as technical auxiliary (compensatory) funds in accordance with the legislation of the Republic of Kazakhstan on social protection.