The State Revenue Committee together with the National Bank is implementing a pilot project “Digital VAT” using digital tenge from the fourth quarter of 2024.
Digital Tenge is a new digital form of national currency based on blockchain technology, which allows to program money to be used strictly for its intended purpose.
To participate in the pilot, exporting companies can purchase the digital tenge with marked VAT from the National Bank through second-tier banks.
The digital tenge, in their marked portion, cannot be used for other purposes or cashed in - these funds are exclusively for settlements with suppliers and the budget.
All information on transactions with digital tenge, as well as information on the movement of VAT on suppliers and budget receipts will be transferred by the National Bank to the state revenue authorities.
This mechanism will allow the state revenue authorities to have sufficient information to refund VAT as soon as possible without tax risks.
The main advantages of using digital tender for business are:
-reduction of VAT refund time to 15 working days instead of 55-75 days;
- absence of tax audits, which reduces administrative and financial costs;
-fast and guaranteed cash turnover, which improves financial planning.
The participants of the pilot project for the IV quarter of 2024 have already been refunded within 5 days without tax audit and risk management system.
The project confirms its effectiveness and the CGD intends to expand the digital solutions, which will increase the transparency of tax revenues.