The tax administration in Kazakhstan can initiate “pilot projects” with respect to tax, and the following two pilot projects have been implemented concerning value added tax (VAT):
The tax-free pilot project applies with respect to certain purchases made at the Esentai Mall trade center in Almaty and at the Almaty International Airport. Under this project, the operator of the tax-free system reimburses individual buyers for the amount of VAT paid in Kazakhstan, if certain conditions are satisfied such as:
This pilot project began 15 August 2019 and will last until 1 July 2022.
The second pilot project concerns improvement of VAT administration procedures, and focuses on electronic VAT invoices. Taxpayers that may participate in this pilot project include:
Under this pilot project, the state revenues authorities are allowed to conduct a desktop review of the participants before the tax reporting deadlines and to request that taxpayers with a high degree of tax risk to provide documentation confirming the transaction or service performance.
Participants in this pilot program must resolve violations that the state revenue authorities uncovered during a desk audit within five business days after receiving notification and must submit copies of any requested documents. If a taxpayer fails to comply, the state revenue authorities can limit the taxpayer’s access to the information system for electronic VAT invoices.
A notification is regarded as being executed if the taxpayer:
If the taxpayer complies, the tax authorities will remove the bar that limits the taxpayer’s access to the information system of electronic VAT invoices within three business days.
This pilot project was launched 18 October 2019 and will last until 1 July 2021.
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