According to subparagraph 7) of Article 474 of the Tax Code, turnovers on the sale of goods, work, and services which place of realization is the Republic of Kazakhstan are exempt from value-added tax if, in the tax period in which the sale was executed, as well as for the four preceding tax periods, the following conditions are met simultaneously:
- the average number of persons with disabilities is at least 51 percent of the total number of employees;
- salaries of persons with disabilities are at least 51 percent of total payroll expenses total expenses for payment for labour.
At the same time, the provisions of this subparagraph apply if the number of employees who are persons with disabilities is at least 10 people, and the production of goods, provision of services, or execution of work was carried out with the participation of such employees.
Thus, turnovers from the sale of goods, work, and services are exempt from VAT and are not taken into account when determining the size of the turnover for mandatory VAT registration only if the conditions provided for in subparagraph 7) of Article 474 of the Tax Code are met simultaneously.