Application of additional offset on the VAT (70%)

The   State Revenue Department for the East Kazakhstan region informs that from July 1, 2021, subparagraph 4) of paragraph 1 of Article 411 of the Tax Code has been put into effect, according to which new manufacturing companies have the right to apply an additional offset on the VAT (70%) for two years from the date of state registration when selling goods that are the result of manufacturing activities in the manufacturing industry (which production  lacks  on the territory of the Republic of Kazakhstan or  is not enough to cover the needs of the Republic of Kazakhstan, except for the production of alcoholic beverages, tobacco products and the metallurgical industry).

At the same time, the manufactured products must meet the criteria of sufficient processing and be confirmed by a certificate of origin of the goods in accordance with the legislation of the Republic of Kazakhstan.

In addition, the right to offset on the VAT  applies to legal entities that first  put into operation  buildings, structures, machinery and equipment for the implementation of activities for the production of products in the manufacturing industry on the territory of the Republic of Kazakhstan  (except for  the metallurgical industry).

At the same time, we inform you that on the basis of information received from of the relevant authorized bodies, the authorized body in the field in government support of industrial activity (Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan) publishes a list of products, which production  lacks  on the territory of the Republic of Kazakhstan or  is not enough to cover the needs of the Republic of Kazakhstan in accordance with the classifier of products by type of economic activity as of July 1, 2021, no later than July 20, 2021 and thereafter - annually as of January 1, no later than January 10 of the corresponding year on its official Internet resource miid.gov.kz.

 

 

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