The Ultimate Guide to E-Tamga and Advance VAT: What Every Business Owner Needs to Know

• Starting January 1, 2026, Kazakhstan’s new Tax Code will introduce significant changes for businesses, particularly through the electronic invoice system known as “E-Tamga. ” This system requires businesses to pay value added tax (VAT) in advance before issuing electronic invoices, which has raised concerns among entrepreneurs. Experts believe this change will increase the number of VAT payers by 2.5 times but only increase the total taxable turnover by 5%.
• The E-Tamga system automates electronic invoicing and mandates advance VAT payment. If a company lacks sufficient funds to cover the VAT, they cannot issue an invoice, forcing businesses to find other ways to access cash, which could impact their operations. The National Chamber of Entrepreneurs criticized this method, stating it goes against the usual practice of paying VAT after transactions.
• The new system will selectively apply to certain groups: newly registered VAT payers, companies re-registered with new partners, those whose invoice issuance has resumed, and those confirming their actual turnover. This categorization will be based on tax risk management.
• The concerns arise mainly from the reduced VAT registration threshold—cut from 20,000 to 10,000 MCI, which translates to about 40 million tenge—and the introduction of a list of activities not eligible for a simplified tax regime. Many small businesses will likely have to switch to the general tax regime, escalating the number of VAT payers significantly and increasing administrative costs, corruption risks, and reducing honest business motivation.
• To address these issues, the National Chamber of Entrepreneurs suggests adjustments, including starting the E-Tamga pilot with only selected groups and expanding the list of exempt taxpayers, as well as reducing the control period for compliant taxpayers.

Source: uchetz.kz

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