About the refund of excess VAT, using the Blockchain technology.

In order to improve the mechanisms of tax collection and support of producers of the Republic of Kazakhstan for the accelerated process of returning excess VAT, Article 433 of the Tax Code of the Republic of Kazakhstan introduced an alternative option for returning excess VAT, using the control account of value added tax.

A control account is opened by VAT payers in second-tier banks to account for the movement of value-added tax payments, including for:

- payment of VAT to the budget, including VAT on imports and for non-residents;

- payment of VAT to suppliers of goods;

- payment of VAT by buyers (recipients) of goods;

- transfer of money from another bank account of the VAT payer.

The refund of the excess amount of VAT, confirmed by the results of the check, is made to the payer using the control account within 15 days.

VAT payers must necessarily be participants in the electronic invoice information system.

The following taxpayers have the right to refund the amount of excess VAT using the control account::

1) Using the purchased goods (leasing items) in the production of other goods. The list of purchased goods (leasing items) is approved by the authorized body in the field of state support of industrial and innovative activities together with the authorized body in the field of development of the agro-industrial complex in coordination with the authorized body and the central authorized body for state planning. These goods (leased items) are not subject to further sale within two years from the date of purchase;

2) selling goods for export;

3) selling fuel and lubricants to foreign airlines performing international flights, international air transportation, for refueling aircraft;

4) selling to the National Bank of the Republic of Kazakhstan refined gold produced from raw materials extracted by the taxpayer independently or acquired in the ownership for the purpose of processing;

5) selling goods to the territory of the special economic zone that are fully consumed in the implementation of activities that meet the goals of creating special economic zones.

Supporting documents for the refund of the amount of excess VAT on goods purchased (received) by taxpayers are:

- contract for the supply of goods (leasing agreement);

- copies of documents confirming receipt of the goods (leased item);

- copies of shipping documents confirming the shipment of the goods (leased item);

- a document confirming the transfer of the amount of value added tax to the supplier's control account for the purchased goods (leased item).

- documents provided for in Chapter 44 of the Tax Code.

Refunds using the VAT control account are not applied when returning excess VAT to taxpayers applying the simplified procedure for returning excess VAT.