VAT Administration Department within the EAEU in connection with the adoption on June 23, 2022 by the Parliament of the Republic of Kazakhstan on July 2022 of the Law of the Republic of Kazakhstan “On Amendments and Additions to the Code of the Republic of Kazakhstan “On Taxes and Other Obligatory Payments to the Budget” (Tax Code) and the Law of the Republic Kazakhstan “On the Enactment of the Code of the Republic of Kazakhstan “On Taxes and Other Obligatory Payments to the Budget” (Tax Code)” explains the main changes in tax legislation on the following issues.
Extension of the validity of the VAT offset method
Amendments to Articles 427 and 428 of the Tax Code, as well as to subparagraph 4) of Article 2 of the Law of the Republic of Kazakhstan “On Enactment of the Code of the Republic of Kazakhstan “On Taxes and Other Obligatory Payments to the Budget” (Tax Code) (shall be enforced from 1 December 2021).
The amendments provide for exceptions from the list of goods imported into the territory of the Republic of Kazakhstan, for items of VAT paid by the offset method, pesticides, representatives of animals of all kinds and equipment for artificial insemination, live cattle, as well as the extension of the deadline for paying VAT on imported goods by the offset method for means of production.
Application of a significant price level in relation to goods imported into the EAEU countries and from third countries
An amendment was made to paragraph 2 of Article 444 of the Tax Code (shall be enforced from January 1, 2023).
Article 444 of the Tax Code with respect to certain types of goods imported from the territory of the EAEU member states for compliance with the requirements of the Republic of Kazakhstan, to determine the acquisition of additional goods of a high price level in accordance with the procedure intended by the authorized body in the field of regulation of trade activities.
In order to ensure the collection of indirect taxes from a reliable taxable base when importing goods into the territory of the Republic of Kazakhstan, amendments have been made to provide for the application of a minimum price level for imported goods both from the territory of the EAEU member states and from the territory of states that are not members of the EAEU.
This rule will ensure equal conditions for participants in foreign economic activity importing goods from the EAEU countries and from third countries.
Issuing an electronic invoice
Decision of the Eurasian Interethnic Council dated 08/12/2016 No. 5 "On certain receipts of import and dispatch of goods to the customs territory of the Eurasian Economic Union in connection with the accession of the Republic of Kazakhstan to the World Trade Organization" stipulates that when moving from the territory of the Republic of Kazakhstan to the territory of other states - the Eurasian Economic Union of goods, included in the List of goods, in relation to the Republic of Kazakhstan, in accordance with the obligations assumed as conditions for accession to the World Trade Organization, the rates of import customs duties are applied, lower than the duty rates of the Common Customs Tariff of the Eurasian Economic Union, and the amount of such duty rates, a paper copy of an electronic invoice (hereinafter referred to as the EI) registered in the national accounting.
Obligations to issue an EI when making turnovers for the sale of goods, works, services arise from taxpayers that meet the conditions of paragraphs 1 of Article 412 of the Code of the Republic of Kazakhstan “On taxes and other obligatory payments to the budget (Tax Code)”.
At the same time, occupied by the places of sale do not apply to individuals engaged in private practice, including in relation to individuals.
In accordance with Article 25 of the Code of Administrative Offenses, an unlawful, guilty (intentional or negligent) action or inaction of an individual or an unlawful action or inaction of a legal entity, for which the Code of Administrative Offenses provides for administrative responsibility, is recognized as an administrative offense.
The absence of obligations to issue an EI from an individual at the time of export of the goods confirms the absence of an offense under Part 5 of Article 280-1 of the Code of Administrative Offenses.