Dear Readers,

A pilot project1 of the Ministry of Finance exempted certain categories of taxpayers from electronic VAT invoicing for 2021 (hereinafter, the “Pilot Project”). We offer you a brief overview of the exemption procedures.

The Pilot Project exempts taxpayers not registered as VAT payers (local companies, branches and representative offices of foreign entities, and self-employed individuals) from the electronic VAT invoicing obligation related to transactions exceeding 1,000 times the monthly index factor.

The exemption is effective for 2021. Accordingly, electronic VAT invoices are not required for the deduction of expenses on the transactions with the abovementioned non-VAT payers for 2021 corporate income tax purposes.

The following taxpayers are exempt from electronic VAT invoicing for 2021, if they sell goods to ultimate consumers (individuals for personal use) or micro-entrepreneurs:

  • Taxpayers subject to electronic VAT invoicing under the requirements of international treaties ratified by Kazakhstan;
  • Taxpayers selling imported goods;
  • Non-VAT taxpayers selling goods from the Virtual Warehouse.

However, the aforementioned taxpayers will be required to issue electronic VAT invoices upon buyers’ requests, if the request is received by 31 December 2021.

The Pilot Project entered into force on 4 July 2021.

1 Order No. 588 of the Minister of Finance of the Republic of Kazakhstan On the Rules and Deadlines for the Implementation of the Pilot Project on the Application of Certain Norms of Tax Administration for Entities, dated 18 June 2021