When carrying out activities related to providing microloans to individuals, pawnshops should take into account the specific provisions of the Tax Code of the Republic of Kazakhstan regarding Value Added Tax (VAT) and the issuance of Electronic Invoices (E-Invoices).
The obligation for non-VAT payers to issue an Electronic Invoice (E-Invoice) is regulated by Article 208 of the Tax Code and depends on the taxpayer's category, the nature of the transaction, and the conditions under which it is carried out.
At the same time, Article 491 of the new Tax Code stipulates that VAT payers are required to issue an invoice when making taxable supplies of goods, works, or services.
If a pawnshop is not registered as a VAT payer and exclusively conducts transactions related to issuing microloans, repayment of loan principal, accrual and receipt of interest, as well as penalties (late payment charges and fines), it is not required to issue an invoice (Electronic Invoice) for such transactions, as they do not fall within the cases specified in Article 208 of the Tax Code.
It should also be taken into account that the VAT exemption for certain financial transactions, including the assignment of claims under loans (credits and microloans), is governed by Article 477 of the Tax Code. However, such an exemption does not, by itself, relieve a taxpayer of the obligation to issue an Electronic Invoice if such an obligation is established by tax legislation.
For the purposes of mandatory VAT registration, the amounts of microloans issued and repaid, interest on loans, as well as penalties (late payment charges and fines), are not included in taxable turnover, since they do not constitute supplies of goods, works, or services or are classified as non-taxable turnover.
If the taxable turnover exceeds the threshold established by the Tax Code, the taxpayer is required to submit an application for VAT registration within the prescribed period. Failure to comply with this requirement entails the application of tax administration measures and administrative liability in accordance with the legislation of the Republic of Kazakhstan.