Order of the First Deputy Prime Minister of the Republic of Kazakhstan - Minister of Finance of the Republic of Kazakhstan dated October 3, 2019 No. 1084 On approval of Rules and terms of realization of pilot project on improvement of value added tax administration on the basis of an electronic invoice information system using a risk management system (pilot project) (Amended and supplemented as at 18 March 2021)

In accordance with paragraph 1-1 of article 68 of the Code of the Republic of Kazakhstan dated December 25, 2017 "ON taxes and other mandatory payments to the budget" (Tax Code) I ORDER I HEREBY ORDER:

  1. to approve the attached Procedures and deadlines of implementation of pilot project on improvement of value added tax administration on the basis of an electronic invoice information system using a risk management system (pilot project).
  2. The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan, in accordance with the procedure established by law, shall provide:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) placing of this order on the Internet resource of the Ministry of Finance of the Republic of Kazakhstan;

3) within ten working days after the state registration of this order with the Ministry of Justice of the Republic of Kazakhstan, submission of data   on the implementation of measures provided for in subparagraphs 1) and 2) of this paragraph to the Department of the Legal Service of the Ministry of Finance of the Republic of Kazakhstan

Paragraph 3 is issued in a new edition of the order Minister of Finance of the Republic of Kazakhstan dated October 3, 2021 № 232 (see the old version.)

  1. This order shall become effective after ten calendar days after the date of its first official publication and is valid until July 1, 2022.

 

the First Deputy Prime Minister

of the Republic of Kazakhstan                                                                                  А. Smailov

 

 

 

Approved by

the order of the First Deputy Prime Minister

 of the Republic of Kazakhstan

dated 3 October 2019 № 1084

 

 

Rules and terms of realization of pilot project on improvement of value added tax administration on the basis of an electronic invoice information system using a risk management system (pilot project)

 

Chapter 1. General provisions

 

Paragraph 1 is issued in a new edition of the order Minister of Finance of the Republic of Kazakhstan dated October 3, 2021 № 232 (see the old version.)

  1. This Regulation and terms of realization of pilot project on improvement of value added tax administration on the basis of an electronic invoice information system using a risk management system (pilot project) (hereinafter – the Regulation) are developed in accordance with paragraph 1-1 of article 68 of the Tax Code of the Republic of Kazakhstan dated December 25, 2017 "On Taxes and Other Mandatory Payments to the Budget" (the Tax Code) (hereinafter - the Tax Code) in order to facilitate taxpayers by taking measures to eliminate the causes and conditions contributing to violations of the tax legislation of the Republic of Kazakhstan, and determine the procedure and terms of realization of the pilot project.
  2. The following basic concepts and abbreviations are used in this Regulation:

1) Committee - State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan;

2) VAT - value added tax;

3) the state revenue body - the Committee, as well as the territorial state revenue bodies on whose territory taxpayers, participants in the pilot project, are registered at their location;

4) notice - notice of the elimination of violations identified by the state revenue bodies based on the results of cameral control;

5) notification - notification of the elimination of violations identified by state revenue bodies based on the results of cameral control;

6) electronic invoice (hereinafter - e-invoice) is a document issued through the e-invoice information system and complies with the requirements of tax legislation and the Rules for issuing an invoice in electronic form in the electronic invoice information system and its form, approved by the order of the First Deputy Prime Minister of the Republic of Kazakhstan- Minister of Finance of the Republic of Kazakhstan dated 22 April 2019 № 370 (registered in the Register of State Registration of Regulatory Legal Acts under № 18583);

7) IS EI - the information system of the authorized body, through which the receipt, processing, registration, transfer and storage of invoices issued in electronic form are carried out.

 

 

Chapter 2. Participants of the pilot project

 

  1. Participants of the pilot project are:

1) high risk VAT payers, determined on the basis of a risk management system based on the analysis of data on purchased and sold goods, works and services;

2) taxpayers (contractors) recipients of goods, works, services according to the EI issued by high-risk taxpayers;

3) state revenue authorities.

 

 

Chapter 3. Rights and obligations of the participants of the pilot project

 

Changes had been made to the paragraph 4 in accordance with the order of Minister of Finance of the Republic of Kazakhstan dated 18 March 21 № 232 (see the old version)

  1. Taxpayers have the right to:

1) eliminate individually the causes and conditions contributing to violations of tax legislation by revoking the EI, according to which the taxpayer is classified as a high-risk taxpayer;

2) receive explanations from the state revenue authorities on the issues of attribution to a high risk, with the exception of the criteria of the risk management system, which are confidential (official) information.

  1. The taxpayer is obliged to:

1) execute notifications sent in accordance with the procedure established by these Rules;

2) submit, at the request of the state revenue authorities, copies of documents confirming the fact of the financial and economic operation.

Paragraph 1 is issued in a new edition of the order the First Deputy Prime Minister of the Republic of Kazakhstan - Minister of Finance of the Republic of Kazakhstan dated 26 December19 г. № 1421 (see the old version); amended and supplemented in accordance with the order of Minister of Finance of the Republic of Kazakhstan dated 18.03.21 № 232 (see the old version)

  1. State revenue authorities have the right to:

1) carry out cameral control before the deadline for submission of tax reports;

2) require to provide documents confirming the fact of the financial and economic operation from a high-risk taxpayer, during the implementation of the pilot project

3) post monthly on the official website of the Committee http://kgd.gov.kz no later than the 5th of the next month, the following lists of taxpayers:

for which the restriction of the EI statement was made;

for which the EI statement was withdrawn within the limits of the restriction

At the same time, these lists are relevant on the first day of the month in which the placement was made, with an increasing total.

  1. State revenue bodies are obliged to:

1) provide taxpayers with explanations on the grounds for applying another form of tax administration, with the exception of the criteria of the risk management system, which are confidential (official) information;

2) provide taxpayers with explanations on criteria that are not confidential information.

 

 

Chapter  4. the Order execution notifications

 

  1. Notifications sent under these Rules are subject to execution within five working days from the date of their delivery (receipt);

Changes had been made to the paragraph 9 in accordance with the order of Minister of Finance of RK dated 18 March 21 № 232 (see the old version.)

  1. The taxpayer's execution of the notification is recognized:

1) in case of agreement to the violations described in the notification, the withdrawal of the issued EI, according to which the taxpayer is classified as a high risk;

2) in case of disagreement to the violations described in the notification, the taxpayer provides an explanation with copies of documents confirming the fact of the financial and economic operation.

The Regulations are completed by paragraph 9-1 in accordance with the order of Minister of Finance of RK dated 18 March 21 № 232

9-1. If notification is considered unfulfilled with the issuance of a decision by the state revenue authorities in accordance with the procedure provided for paragraph 4 of Article 96 Of the Tax Code, suspension of expenditure transactions on the bank accounts of the participants of the pilot project specified in subparagraph 2) of paragraph 3 of the Rules is not carried out.

 

 

Chapter 5. The procedure and terms of realization of the pilot project

 

  1. The Committee forms a weekly list of taxpayers specified in subparagraph 1) of paragraph 3 of these Rules.

Paragraph 11 is issued in a new edition of the order the First Deputy Prime Minister of the Republic of Kazakhstan - Minister of Finance of the Republic of Kazakhstan dated 26 December19 г. № 1421 (see the old version.); changes had been made in accordance with ythe order Minister of Finance of the Republic of Kazakhstan dated 18.03.21 № 232 (see the old version.)

  1. The Committee, after attribution a high degree of risk to the taxpayer, sends within one working day:

1) notification to the taxpayer with indication of issued EI (if any), according to which the taxpayer is classified as a high risk. At the same time, the date of issue of such EI cannot be earlier than the first of January 2019;

2) notification in the EI IS that the taxpayer is classified as a high risk taxpayer  and in case of non-fulfillment of the notification, access to the  EI IS will be restricted;

3) notification in the web application "Taxpayer's account" of the taxpayer who is the recipient of goods, works, services according to the EI data.

  1. The state revenue authorities monitor the execution of sent notifications on an ongoing basis.
  2. The state revenue authorities conduct an analysis of the withdrawn EI and the explanations provided within five working days from the date of execution of the notification by the taxpayer.

Paragraph 11 is issued in edition of the order the First Deputy Prime Minister of the Republic of Kazakhstan - Minister of Finance of the Republic of Kazakhstan dated 26.12.19 № 1421 (see the old version.)

  1. The state revenue authorities apply restrictions on access to the EI IS in the following cases and terms:

1) within one working day after the completion of the analysis of the explanation, provided that such explanation does not contain the information specified in paragraph 2 of article 96 of the Tax Code;

2) within one working day after the expiration of the notice period, provided that such notice has not been executed.

At the same time, state revenue authorities sent a notification of the application of a risk management system with such a restriction of its access to the EI IS, as well as of non-fulfillment of the notification.

See.: Answer of Chairman of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan dated October 29 , 2019 to the question dated October 17 , 2019 No. 575797 (dialog.egov.kz ) «Regarding locking access to the ESF IP in accordance with the pilot project to improve VAT administration», Answer of Chairman of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan dated November 7 , 2019 to the question dated October 28 , 2019 No. 577609 (dialog.egov.kz ) «The SRC of the Ministry of Finance of the Republic of Kazakhstan is developing the technical possibility of issuing an ESF to the address of the buyer for whom the ESF statement was restricted»

Paragraph 15 is issued in edition of the order the First Deputy Prime Minister of the Republic of Kazakhstan - Minister of Finance of the Republic of Kazakhstan dated (see the old version.); the order Minister of Finance of the Republic of Kazakhstan dated 18.03.21 № 232 (see the old version.)

  1. In case of the notification execution, the state revenue authorities cancel the application of restrictions on access to the ESF IC, while simultaneously notifying the participants of the pilot project in the ESF IC.

 within one working day after the execution of such notification,

The Rules are completed by paragraphs 16 - 18 in accordance with the order the First Deputy Prime Minister of the Republic of Kazakhstan - Minister of Finance of the Republic of Kazakhstan dated 26.12.19 № 142. Paragraph 16 is issued in edition of the order of the Minister of Finance of the Republic of Kazakhstan of 18.03.21 № 232 (see the old version)

  1. In case of restriction of the EI issuing, the terms of its issuing provided for article 413 of the Tax Code, are suspended until such restriction is lifted.
  2. Cameral control and execution of the notification of elimination of violations identified by the state revenue authorities based on the results of cameral control is carried out in accordance with the procedure defined by Chapter 10 of the Tax Code, except the features provided for by these Rules.
  3. If the notification is executed by one of the methods established by paragraph 9 of the Rules, the degree of risk assigned under the pilot project is removed from taxpayers.
Дата публикации
01 октября 2021