Restored tax relief for importers of pesticides, breeding animals and cattle

The Law of the Republic of Kazakhstan dated July 11, 2022 No. 135-VII ZRK amended the Tax Code regarding the administration of value added tax. This was reported in the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan.

Such amendments have been made to Articles 427 and 428 of the Tax Code and are being put into effect retrospectively from January 1, 2022.

The amendments provide for the inclusion in the list of goods imported into the territory of the Republic of Kazakhstan, for which VAT is paid by the offset method, pesticides (pesticides), breeding animals of all kinds and equipment for artificial insemination, live cattle. The amendments were made according to the proposals of the business community. Earlier, by the Law of the Republic of Kazakhstan dated December 20, 2021, these positions were excluded from the preferential list.

Also, the limitation period for goods whose import VAT is paid by the offset method has been increased to 5 years. This rule comes into force on July 1, 2022.

Editorial amendments were also made to paragraph 2 of Article 434 of the Tax Code regarding the administration of VAT refund, namely, the words "business entities that carried out the conversion" were replaced with the words "exporters of raw materials during conversion" and the words "from the export of raw materials" were excluded. These norms provide for the right to apply a simplified procedure for the refund of excess VAT for persons who have converted at least 50 percent of the foreign exchange earnings received from the export of raw materials.

The changes will come into force on July 1, 2022.