Changes in value added tax from 01.01.2023
In terms of deregistration for VAT based on the decision of the state revenue authority
an amendment was made to subparagraph 1) of paragraph 4 of Article 85 of the Tax Code (shall be enforced from January 1, 2023), providing for the addition that the VAT payer's failure to submit tax reporting on the gambling business is the basis for deregistration for VAT without notifying the taxpayer;
amendments were made to Articles 85, 209 and 424 of the Tax Code (shall be enforced from January 1, 2023), providing for a reduction in the list of declarations that are provided upon deregistration for VAT. From the list of taxpayers who are subject to the obligation to submit a liquidation VAT return, persons who have been deregistered for VAT (from the date of registration) by decision of the state revenue authority have been excluded.
Clarifying VAT amendments
amendments were made to subparagraph 2) of paragraph 1 of Article 381 and paragraph 3 of Article 410 of the Tax Code (shall be enforced from January 1, 2023), providing for clarification that the amount of VAT for the purposes of calculating VAT when converting pledged property into the property of the pledgee does not include the amount of VAT .
Clarification of the wording in terms of the fact that for the purposes of paragraph 9 of Article 243 of the Tax Code, the amount of VAT not allowed for offsetting is not taken into account when providing services to a casino, a slot machine hall, a betting shop and a betting office.
VAT exemption
in article 394 of the Tax Code: amendments were made to subparagraph 48), supplemented by subparagraphs 51), 52) and 53), providing for the exemption from VAT of turnovers for the sale of the following goods:
- household appliances and (or) consumer electronics devices sold by a legal entity that is an authorized representative of the manufacturer of household appliances and (or) consumer electronics devices (dealer) (valid from January 1, 2023 to January 1, 2028);
- refined gold and (or) silver by entities producing precious metals by entities producing jewelry and other items operating in the territory of the Republic of Kazakhstan;
- household appliances and (or) consumer electronics devices, as well as their components, while meeting certain conditions (valid from January 1, 2023 to January 1, 2028).
Additional VAT credit
addition of subparagraph 2) of paragraph 1 of Article 411 of the Tax Code (shall be enforced from January 1, 2023), providing for the expansion of the circle of persons applying the provisions on the additional VAT offset:
commercial fishing;
yeast production;
production of chocolate, sugary confectionery, biscuits and long-term storage confectionery, subject to the conclusion of an agreement by the taxpayer in the manner determined by the authorized body in the field of development of the agro-industrial complex;
sugar production.
According to ESF
in Article 412 of the Tax Code: part one of paragraph 1 was supplemented with subparagraphs 10) and 11), amendments were made to subparagraph 1) of part two of paragraph 7, part one of paragraph 14; article 413 of the Tax Code amended paragraph 2 (shall be enforced from January 1, 2023), providing for the following:
- the terms for issuing an ESF were reduced (from 3 or 5 years to 180 calendar days) at the request of the buyer if the supplier had the right not to issue an ESF for the sale of goods, works, services in accordance with paragraph 13 of Article 412 of the Tax Code;
- an obligation was introduced to issue an ESF by persons carrying out conformity assessment activities (MTI order No. 433-ҢK dated June 29, 2021) and persons carrying out activities in the field of customs (authorized economic operators, customs representatives, customs carriers, owners of temporary storage warehouses , owners of customs warehouses).
VAT Administration
amendments were made to Article 388 of the Tax Code (shall be enforced from January 1, 2023), providing for the expansion of business entities by “ground handling service providers” in order to create equal conditions for business entities that sell fuels and lubricants when refueling aircraft of foreign airlines operating international flights, international air transportation;
amendments were made to paragraph 2 of Article 431 of the Tax Code (shall be enforced from January 1, 2023), providing for a reduction in the time for refunding excess VAT to exporters that meet the conditions of paragraph 3 of Article 429 of the Tax Code from one hundred and fifty-five calendar days to seventy-five working days;
Paragraph 2 of Article 434 of the Tax Code (shall be enforced from January 1, 2023) was amended with clarification regarding the refund of excess VAT that has developed over the reporting tax period for taxpayers who are manufacturers of goods of their own production in the manufacturing industry and clarification of the amount of refund of excess VAT if the conditions are met permanent and non-permanent implementation.
On the taxation of VAT on lottery activities
The Law of the Republic of Kazakhstan “On the Enactment of the Code of the Republic of Kazakhstan “On Taxes and Other Obligatory Payments to the Budget” (Tax Code)” was supplemented with a new article 57-13, which provides that from January 1, 2018 to December 31, 2020, the amount of turnover in the sale the lottery operator of lottery tickets, receipts or other documents is determined in the amount of the positive difference between the value of sold lottery tickets, receipts and other documents and the winnings paid to the lottery participants, as well as unclaimed winnings to be credited to the budget in the form of a non-tax payment.