The draft order of the Deputy Prime Minister – Minister of Finance of the Republic of Kazakhstan "On Amendments to the Order of the Acting Minister of Finance of the Republic of Kazakhstan dated August 13, 2019 №871

     

       The draft order of the Deputy Prime Minister – Minister of Finance of the Republic of Kazakhstan "On Amendments to the Order of the Acting Minister of Finance of the Republic of Kazakhstan dated August 13, 2019 No. 871 "On Approval of the Rules and Deadlines for the Implementation of a pilot project to Compensate the Amount of Value Added Tax to Individuals Who are Citizens of Foreign States when Exporting Goods outside the Customs Territory of the Eurasian Economic Union, except for export of goods through the territories of the member states of the Eurasian Economic Union (tax free pilot project)"

       Within the framework of paragraph 1-1 of Article 68 of the Code of the Republic of Kazakhstan «On Taxes and Other Mandatory Payments to the Budget «(Tax free) in accordance with the Order of the Acting Minister of Finance of the Republic of Kazakhstan dated August 13, 2019 №. 871 «On Approval of the Rules and Deadlines for the implementation of a pilot project to compensate the amount of value added tax to individuals who are citizens of foreign states, when exporting goods outside the customs territory of the Eurasian Economic Union, except for the export of goods through the territories of the member states of the Eurasian Economic Union (taxi Free pilot project)»» for the purpose of developing tourism in Kazakhstan in stationary retail facilities located in the cities of Astana, Almaty and Turkestan on the basis of an agreement on participation in the taxi free pilot project concluded between the operator of the taxi free system and the subject of trade activity in the «taxi free» system and the international airports of Almaty, Astana and Turkestan region are implementing a pilot project «taxi free».

       At the same time, the Akimat of Shymkent city expressed interest and willingness of business representatives to participate in the pilot project (letter of the Akimat of Shymkent dated May 5, 2023 No. 36-02/3933). Various routes in the tourist market pass through the cities of Turkestan, Taraz, Tashkent, Samarkand on major routes of the «Great Silk Road» located in the immediate vicinity of the city of Shymkent, through which the transport corridor «Western Europe-Western China» passes, connecting Asia and Europe.

In addition, there is a Citadel mound on the territory of the city with the name «a city within a city», which is included in the top 50 tourist maps of the Republic of Kazakhstan. The mausoleums of Khoja Ahmed Yasawi of holy Turkestan, the ancient cities of Otrar, the mausoleums of Shakhristan Taraz and Aisha Bi bi are located in the suburbs of Shymkent.

Thus, taking into account the expansion of geography and the expansion of the number of participants of the pilot, the draft regulatory act proposes to extend the duration of the pilot project by 18 months until December 31, 2024. Also, the expansion of the geography and extension of the pilot project until the end of 2024 is supported by the pilot project operator, the international company Global Blue Kazakhstan LLP.

The implementation of the Project will not require the allocation of funds from the republican budget. The adoption of the Project does not affect the interests of private business entities and will not entail negative socio-economic and/or legal consequences.

The purpose of the implementation is to develop tourism in Kazakhstan and attract foreign tourists by compensating the amount of value added tax to individuals who are citizens of foreign states when exporting goods outside the customs territory of the Eurasian Economic Union, except for the export of goods through the territories of the member states of the Eurasian Economic Union («tax free»).

The project complies with international treaties ratified by the Republic of Kazakhstan and decisions of international organizations to which the Republic of Kazakhstan is a party.

The project is posted on a single platform of Internet resources of state bodies, as well as the Internet portal of open regulatory legal acts (http://legalacts.egov.kz ).

The deadline for public discussion of the draft order is June 8, 2023.