Tax NewsFlash - October 2022

Dear Readers,

The Ministry of Finance approved¹ the Rules for the Implementation of the Pilot Project on VAT Administration for Taxpayers Importing Goods from China and Turkey. The Pilot Project is planned to be launched from 1 October 2022.

Pilot Project on VAT Administration

The Pilot Project rules define:

1. Criteria to participate in the Pilot Project for resident taxpayers regularly importing goods from China and Turkey and selling these goods in Kazakhstan and in other member states of the EEU;
2. Rights and obligations of taxpayers and the state revenue authorities during the Pilot Project;
3. Procedure for the implementation of the Pilot Project including the sequence of actions of the state revenue authorities and taxpayers during the Pilot Project.

The Pilot Project will be implemented in two stages: pre-project review (up to 30 business days) and the Pilot Project implementation.

Pre-project review – a review that the state revenue authorities conduct upon a taxpayer's application to determine the applicant’s compliance with the requirements established by the Rules for the participation in the Pilot Project. On the basis of the pre-project review, the State Revenue Committee decides whether the applicant qualifies for concluding an Agreement with the State Revenue Committee on participation in the Pilot Project.

From the date of signing the Agreement, a participant in the Pilot Project will be granted a low degree of risk in the customs risk management system. The established low risk degree will not apply to imports from countries other than those established by the Rules.

The Pilot Project will be carried from 1 October 2022 to 31 December 2025.

The order will come into force on 3 October 2022.