Application of the Minimum Price Level (MTL)

The Law of the Republic of Kazakhstan No. 53-VII of June 24, 2021 amended paragraph 2 of Article 444 of the Tax Code as follows:

For certain types of goods imported from the territory of the member states of the Eurasian Economic Union to the territory of the Republic of Kazakhstan, the minimum price level is applied to determine the value of the purchased goods in accordance with the procedure determined by the authorized body in the field of regulation of trade activities.

The list of certain types of goods for which the minimum price level is applied is approved by the Government of the Republic of Kazakhstan.

A new instrument of the trade policy of the ICC was introduced to establish the value when calculating VAT on imported goods according to the list established by the Ministry of Trade and Integration of the Republic of Kazakhstan.

During the monitoring of transported goods from the EAEU countries, the state revenue authorities reveal numerous violations, including underestimation of the cost of imported goods. All these facts lead to VAT losses due to the underestimation of the tax base and put bona fide entrepreneurs and manufacturers in unequal competitive conditions.

The introduction of a minimum price level for certain goods from the EAEU countries will help prevent the facts of underestimation of the cost of imported goods and will allow collecting VAT from the current tax base.

This measure is aimed at supporting and protecting domestic producers. It is also the possibility of applying mirror measures against countries that discriminate against Kazakhstan's exports.

Paragraph 2 of Article 444 of the Tax Code will enter into force on January 1, 2022