Kazakhstan’s Conditional VAT Registration for Foreign Companies

Purpose

The new rules aim to:

• Improve tax compliance among foreign e-commerce platforms.
• Reduce the shadow economy.
• Ensure fair competition between domestic and foreign sellers.

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Key Features of the Conditional VAT Registration

1. Who Must Register

Foreign companies that:

• Sell goods or provide services to individuals in Kazakhstan.
• Operate via online marketplaces, including platforms that facilitate sales, order processing, or payments.

2. Trigger for VAT Registration

• Registration is required from the date of the first payment received from a Kazakhstani buyer.
• A confirmation letter with corporate details must be submitted to the State Revenue Committee within one month of that payment. [kpmg.com]

3. Registry of Foreign VAT Payers

• A special register will be maintained by the tax authorities.
• Companies must update their information within 10 working days of any changes. [vatupdate.com]

4. VAT Rate

• The VAT rate will increase from 12% to 16% starting in 2026. [timesca.com]

5. Monthly Tax Filing

• Foreign companies must file and pay VAT monthly, by the 20th of the following month. [en.tengrinews.kz]

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Enforcement & Penalties

• Non-compliance may result in blocking access to Kazakhstani users.
• The State Revenue Committee, in cooperation with the National Bank, will monitor payments to foreign platforms to identify violators.
• Companies already registered for VAT do not need to re-register. [timesca.com]

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Threshold Changes

• The VAT registration threshold will be halved from 20,000 MCI to 10,000 MCI, bringing more businesses into the VAT system. [en.tengrinews.kz]

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