Kazakhstan: Indirect tax changes effective January 2022

Legislative changes adopted in December 2021

Legislative changes adopted in December 2021

Legislative changes concerning indirect taxes were adopted in December 2021 and have an effective date in January 2022.

  • Value added tax (VAT): The VAT registration threshold is reduced to 20,000 times the monthly index factor. Beginning 1 January 2022, electronic sales of goods and services by foreign entities to individuals in Kazakhstan are subject to VAT.
  • VAT procedure: Amendments address when exporters of raw materials that convert a percentage of foreign-currency proceeds are allowed input VAT under a simplified procedure.
  • Electronic invoicing: The electronic invoicing obligation does not apply to sales of imported goods or goods from the “virtual warehouse mode” if the buyer of the goods is an ultimate consumer or a micro-entrepreneur. However, the seller will be required to issue a VAT invoice upon the buyer’s request.
  • Excise taxes: A governmental resolution introduces excise taxes on gasoline, petroleum solvents, a blend of light carbohydrates, and ecological fuel.
  • Digital mining: There is a new mandatory payment for “digital mining.” Taxpayers mining cryptocurrencies are required to remit the digital mining payments to the government  on a quarterly basis at a rate of one tenge per kilowatt-hour of the consumed electricity. Taxpayers engaged in activities related to digital assets (issue, trade, exchange) are regarded as financial monitoring entities. In addition, these taxpayers are required to notify the governmental authorities on information technology of the start or termination of their activities.
     

For more information, contact a KPMG tax professional:

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

 

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