Article 411 of the Tax Code of the Republic of Kazakhstan "on taxes and other payments to the budget" Subject: Additional amount of value added tax to be offset

The following persons are entitled to set off an additional amount of value added tax:

1) producers of agricultural products, aquaculture (fish farming), including farm enterprise, – the turnover on realization of goods, resulting from the implementation of activity on production of agricultural products, aquaculture (fish farming), processing of the specified products of own production;

2) legal entities – by turnover for the sale of goods resulting from the processing of agricultural products, fish products. Processing of agricultural products and fish farming products includes the following types of activities, with the exception of activities in the field of public catering:

production of meat and meat products;

processing and preserving of fruits and vegetables;

production of vegetable and animal oils and fats;

milk processing and cheese production;

production of products of the flour and grain industry;

production of ready-made animal feed;

bread production;

production of baby food and dietary food products;

production of products of the starch industry;

processing of hides and wool of farm animals;

cleaning cotton from seeds;

processing live fish;

3) agricultural cooperatives by turnover by:

sales of agricultural products, aquaculture (fish farming) products of their own production, as well as those produced by members of such a cooperative;

sales of products obtained as a result of processing of agricultural products, aquaculture (fish farming) products of their own production, purchased from a domestic producer of such products and (or) produced by members of such a cooperative;

performance of works, rendering of services on the list specified by the authorized body in the sphere of development of agriculture in consultation with the Central authorized body for state planning and the competent authority, members of the cooperative to implement their momentum, referred to in this paragraph.

The provisions of this paragraph do not apply to sales of excisable goods and products of their processing.

Definition of types of activity for the purpose of application of this point is performed according to the General classifier of types of economic activity approved by the state body performing state regulation in the field of technical regulation.

Taxpayers referred to in paragraph 1 of this article may apply the provisions of this article provided that separate accounting is maintained:

sales turnover for the activities provided for in paragraph 1 of this article and other activities;

goods, works, services that are or will be used in the activities provided for in paragraph 1 of this article and other activities that are subject to receipt (received).

Taxpayers specified in sub-paragraphs 1) and 3) of part one of paragraph 1 of this article may not apply the provisions of this article if the legal entity is a foreigner or a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment.
The calculation of the additional amount of value added tax that is offset is made using the following formula:

Ndsz = (Ntabl – Hsrs– Ndsp)X70%, where:

Ndsdz – additional amount of value added tax that is offset;

Ndsobl – the amount of value added tax accrued from taxable turnover on sales of activities provided for in paragraph 1 of this article;

Ndsrz – the amount of value added tax allowed to be set off, determined in accordance with articles 408, 409 and 410 of this Code. This amount is determined by the goods, works, and services to be received (received) that are used or will be used in the activities provided for in paragraph 1 of this article;

Ndspr – the amount of excess of the amount of value-added tax attributed to the offset over the amount of accrued tax, formed at the beginning of the reporting tax period on an accrual basis, for the activities provided for in paragraph 1 of this article.

The resulting zero or negative value is not taken into account when calculating value added tax for the tax period.

Chief specialist of the Department of internal Affairs

in Enbekshikazakh district

Department of administration of legal entities

Gasanova G. A.