The main changes in the rules concerned the introduction of a risk management system for a simplified VAT refund, which will exclude the possibility of refunding excess VAT resulting from the use of gray schemes. This was reported in the Ministry of Finance of the Republic of Kazakhstan.
Earlier, information was published in the media that the new rules for refunding excess VAT were adopted without discussion with the business community and contradict the norms of the Tax Code. This material notes that taxpayers lose the right to a simplified procedure for the return of excess VAT.
The Ministry of Finance noted that the new rules were developed in accordance with Articles 136 and 429 of the Tax Code, and regulate relations with the budget for VAT refunds to exporters and other categories of taxpayers. The changes came into force on April 14, 2022 (Order of the Minister of Finance of the Republic of Kazakhstan dated March 19, 2018 No. 391 “On approval of the Rules for the return of excess value added tax”).
When developing the act, the comments, suggestions and recommendations of the business community were taken into account.
The draft order was posted on the website legalacts.egov.kz for public discussion from January 25, 2022 to February 8, 2022. All comments and suggestions were answered with justifications. Accordingly, all procedures and deadlines for introducing amendments to regulatory legal acts have been observed.
According to the new rules, the audits will now analyze mutual settlements with suppliers through related parties, which will exclude the possibility of recovering excess VAT resulting from the use of gray schemes.
Also, based on the practical experience of checks, mathematical calculation formulas have been introduced into the rules instead of textual formulations. Formulas contribute to the introduction of a uniform practice of applying the norms of legislation and eliminate the risk of incorrect determination of the amount and the subjective assessment of the inspector.
In addition, the previously existing 15 negative criteria have been reduced to 12, and 12 additional positive criteria have been introduced, which are aimed at supporting bona fide manufacturers. Also, the procedure for calculating the criteria has been improved, if previously negative scores were assigned for the very fact of risk, then according to the new rules, scores are assigned according to the scale of risk.
Thus, the Ministry is confident that the new rules will encourage conscientious manufacturing enterprises with a positive tax history and help create equal conditions for all business participants.
State Revenue Department for Beimbet Mailin District