The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan (SRC of the Ministry of Finance of the Republic of Kazakhstan) informs that from January 1, 2022, a new section of the Tax Code comes into effect regulating the procedure for imposing value added tax on foreign companies through whose Internet platform electronic trade in goods is carried out, as well as providing services in electronic form to individuals.
The new provisions provide for the following conditions, when establishing one of which a foreign company is obliged to calculate and pay value added tax in the Republic of Kazakhstan:
the place of residence of an individual buyer is the Republic of Kazakhstan;
the location of the bank in which a bank account is opened, used by an individual buyer to pay for services, or an electronic money operator through which an individual buyer pays for services, is the territory of the Republic of Kazakhstan;
the network address of the individual buyer used for the purchase of services is registered in the Republic of Kazakhstan;
The international country code of the telephone number (including mobile) used for the purchase or payment of services is assigned by the Republic of Kazakhstan.
Consequently, a foreign company, through the Internet platform of which electronic trade in goods is carried out and (or) providing services in electronic form to individuals in respect of whom the above conditions are established, is recognized as a payer of value added tax in the Republic of Kazakhstan and is subject to conditional registration with the tax authority.
For conditional registration, a foreign company once sends a confirmation letter by mail to the SRC of the Ministry of Finance of the Republic of Kazakhstan, in which it indicates:
the full name of the foreign company;
tax registration number (or its equivalent), if there is such a number in the country of incorporation or the country of residence of a non-resident;
state registration number (or its equivalent) in the country of incorporation of a non-resident or the country of residence of a non-resident;
bank details from which the value-added tax will be paid when carrying out electronic trade in goods, rendering services in electronic form to individuals;
postal details (official email address, address of the location in the country of incorporation or the country of residence of a non-resident).
In order to simplify the business process for these turnover, a foreign company does not provide tax reporting on value added tax and does not issue electronic invoices.
The turnover of a foreign company related to electronic trade in goods and the provision of electronic services is subject to value added tax at the rate of 12 percent. The payment period is made according to the results of the quarter in which the sale of goods and the provision of services was made, respectively, on May 25, August 25, November 25 and February 25.