Kazakhstan: Electronic sales by foreign entities via internet subject to VAT beginning in 2022

Kazakhstan: Electronic sales by foreign entities

Electronic sales of goods and services to individuals in Kazakhstan, when made by foreign entities via the internet, will be subject to value added tax (VAT) effective 1 January 2022.


A new section that has been added to the tax law addresses the VAT treatment of sales made by foreign internet companies, and accordingly there are newly defined terms including electronic services, electronic sale of goods, and an internet platform.

  • Foreign entities that, via their internet platforms, make electronic sales of goods or services to individuals in Kazakhstan will be regarded as VAT payers.
  • A foreign internet company will be required to calculate and pay the amount of VAT on an electronic sale of goods or services made to an individual, if one of the following conditions is met:
    • The individual buyer's place of residence is Kazakhstan.
    • The buyer pays the foreign internet company through a bank account or via an operator of electronic money transfer service located in Kazakhstan.
    • The individual buyer's network address is registered in Kazakhstan.
    • The buyer uses for the transaction a telephone number (including mobile) with an international country code assigned to Kazakhstan.

The measures also introduce a registration process for foreign internet companies, requiring a foreign internet company to submit to the tax authorities a hardcopy of a confirmation letter with the following information:

  • Name of the company
  • Tax registration number (or its equivalent), if there is such number in the country of incorporation or the country of residence
  • State registration number (or its equivalent) in the country of incorporation or the country of residence
  • Bank account details from which the company will pay the Kazakh VAT
  • Postal details (official e-mail address, address of location in the country of incorporation or the country of residence)

Foreign internet companies will not be required to issue VAT invoices or submit VAT declarations in Kazakhstan.

For the calculation of VAT on an electronic sale of goods or services, a foreign currency value of the transaction must be converted into tenge at the market exchange rate on the last business day preceding the payment date.

The rules provide for quarterly VAT payments, to be remitted by the 25th day of the second month following the quarter in which a foreign entity sold goods or services electronically.

For more information, contact a KPMG tax professional:

Philippe Stephanny | +1 202 533 3082 | philippestephanny@kpmg.com


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