Simplified procedure for the refund of excess value added tax

Amendments have been made to paragraph 2 of Article 434 of the Tax Code (effective from January 1, 2022).

 

In order to encourage exporters to sell foreign exchange earnings on the territory of the Republic of Kazakhstan, an addition has been made providing for a simplified refund of no more than 80 percent of the amount of excess VAT to business entities that have converted at least 50 percent of foreign exchange earnings received from the export of raw materials during the tax period.

The Ministry of Finance of the Republic of Kazakhstan, in coordination with the Ministry of National Economy of the Republic of Kazakhstan, is developing a draft resolution of the Government of the Republic of Kazakhstan to implement this norm, which will determine the list of business entities that have converted at least 50 percent of the foreign exchange earnings received from the export of raw materials during the tax period.

Also, the Ministry, in coordination with the National Bank of the Republic of Kazakhstan, is developing an order approving the procedure and form for submitting an opinion to the tax authorities on the conversion of foreign currency earnings.