New additional VAT benefits

Article 394 of the Tax Code contains new standards on VAT exemption.

According to the new regulations,  proceeds from the sale of the following goods, works, and services in the Republic of Kazakhstan are exempt from VAT. Exemptions are granted when:

1) the sale of goods produced and sold in the implementation of priority activities on the territory of the FEZ, while meeting the following conditions:

- the existence of a treaty (contract) for the supply of goods with organizations working in the territory of the FEZ;

- availability of documents confirming the shipment of goods to the FEZ participant;

- availability of documents confirming the receipt of goods by the buyer-participant of the FEZ;

2) the providing services of the designated operator, issued by unified documents in accordance with the acts of the Universal Postal Union, for the transit of international postal items of the designated operators of other member countries of the Universal Postal Union through the territory of the Republic of Kazakhstan;

3) providing services exclusively for the implementation of socially significant passenger transportation by road in urban (rural), suburban, intra-district, inter-district (intercity intra-regional) communication, as well as trams.