Value added tax (VAT) represents deductions to the budget of a part of the value of the taxable turnover on sales added in the process of production and circulation of goods (works, services), as well as deductions when importing goods into the territory of the Republic of Kazakhstan.
The procedure of export and import from one country to another of the EAEU is regulated by the Treaty on the Eurasian Economic Union (hereinafter referred to as the Treaty). The procedure for collecting indirect taxes and the mechanism for controlling their payment when exporting and importing goods in the Customs Union is regulated by a separate Protocol (Annex No. 18 to the Agreement).
Thus, the Agreement provides for the collection of indirect taxes in mutual trade in goods is carried out according to the principle of the country of destination, which provides for the application of a zero VAT rate and (or) exemption from excise taxes on the export of goods, as well as their taxation with indirect taxes on import. At the same time, the rates of indirect taxes in mutual trade when importing goods into the territory of a member state should not exceed the rates of indirect taxes levied on similar goods when they are sold on the territory of this member state.
VAT on import of goods
Import within the framework of the EAEU is the import of goods into the territory of the countries that are members of the EAEU. If imported goods are subject to customs declaration in accordance with the customs legislation of the EAEU, then the concept of "taxable import" applies to them.
Taxable imports are goods imported or imported into the territory of the EAEU member States (with the exception of those exempt from value added tax in accordance with Article 399 of the Tax Code of the Republic of Kazakhstan), subject to declaration in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan.
In accordance with Article 422 of the Tax Code of the Republic of Kazakhstan, if imports to the territory of Kazakhstan are made from the territory of the EAEU countries, they are subject to VAT at the standard rate of 12%.
At the same time, it does not matter whether the importer is registered as a VAT payer or not – the obligation to pay tax in this case arises by default. The exception is goods exempt from VAT. Their list is specified in Article 451 of the Tax Code of the Republic of Kazakhstan. Thus, the import of certain goods provided for by tax legislation is exempt from value-added tax (for example, banknotes and coins of national and foreign currency, goods imported as humanitarian aid, imported as part of the warranty service provided for by the contract (contract), medicines subject to conditions, etc.).
Also, the import of raw materials and (or) materials as part of vehicles and (or) agricultural machinery, as well as their components placed under the customs procedure of a free warehouse or a free customs zone of the special economic zone "Qyzyljar" by a legal entity within the framework of a special investment contract concluded with the authorized body for the conclusion of special investment contracts is exempt from VAT. A legal entity that has concluded a special investment contract with an authorized body has the right to apply exemption from value added tax when importing goods as part of finished products produced in the territory of a special economic zone or a free warehouse.
Exemption from VAT on imports of goods subject to customs declaration in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan, with placement under the customs procedure providing for exemption from taxes, is carried out in accordance with the procedure established by the customs legislation of the Republic of Kazakhstan. For example, goods placed under the customs procedure of customs transit, customs warehouse, processing in the customs territory, free customs zone, free warehouse.
As for the import of services, VAT is paid only by taxpayers who are registered for VAT and only if the place of provision of these services is the territory of the Republic of Kazakhstan.
The taxpayer is obliged to submit the relevant tax declaration to the tax authority no later than the 20th day of the month following the month of registration of imported goods. Simultaneously with the tax return, the taxpayer submits the following documents to the tax authority:
1) The application in hard copy (in four copies) and in electronic form, or only in electronic form;
2) a bank statement confirming the actual payment of indirect taxes on imported goods,
3) transport (shipping) documents;
4) invoices issued in accordance with the legislation of a member state of the customs union;
5) contracts (contracts), leasing agreements (contracts); contracts (contracts) of commodity credit (commodity loan, loan in the form of things); contracts (contracts) on the manufacture of goods; contracts (contracts) for the processing of raw materials;
6) information message, in the cases established by Annex 18 of the Contract.
VAT on the export of goods
Regarding VAT on the export of goods from Kazakhstan, zero value added tax may be applied if the exporter confirms the relevant right by submitting the relevant documents to the fiscal authority within 180 calendar days from the date of shipment (transfer) of goods.
To confirm the validity of the application of the zero VAT rate and (or) exemption from excise taxes by the taxpayer of the member state of the Customs Union from whose territory the goods were exported, the following documents (copies thereof) are submitted to the tax authority simultaneously with the tax declaration:
1) contracts (contracts) on the basis of which the export of goods is carried out; leasing agreements (contracts), contracts (contracts) of commodity credit (commodity loan, loan in the form of things); contracts (contracts) for the manufacture of goods; contracts (contracts) for the processing of raw materials;
2) bank statement confirming the actual receipt of proceeds from the sale of exported goods to the account of the taxpayer-exporter;
3) an application for the import of goods and payment of indirect taxes, drawn up in the form of Annex 1 to the Protocol on the exchange of information in Electronic Form between the tax authorities of the member states of the Customs Union on the amounts of indirect taxes paid, with a mark of the tax authority of the member state of the customs union, on the territory of which the goods were imported, on the payment of indirect taxes (exemption or other order of fulfillment of tax obligations);
4) transport (shipping) documents confirming the movement of goods from the territory of one member state of the customs union to the territory of another member state of the customs union. These documents are not submitted if the execution of such documents for certain types of movement of goods is not provided for by the legislation of a member state of the Customs Union;
5) other documents confirming the validity of the application of the zero VAT rate provided for by the legislation of the member state of the customs union from whose territory the goods were exported.
If these documents are not submitted within the prescribed period, the amount of VAT is payable to the budget, with the right to deduction (offset) the corresponding VAT amounts according to the legislation of the member state of the Customs Union from whose territory the goods were exported.
In case of non-payment, incomplete payment of VAT, payment of such taxes in violation of the deadline, the tax authority collects VAT and penalties in the manner and amount established by the legislation of the member state of the Customs Union from whose territory the goods were exported, and also applies methods to ensure the fulfillment of obligations to pay VAT, penalties and liability measures established by the legislation of that state.