Tax NewsFlash - June 2023

Dear Readers,

From 20 June 2023 to 31 December 2024, the customs authorities of Kazakhstan is conducting a pilot test of a new system for customs clearance of E-commerce goods. The implementation procedure of the experiment is regulated by a newly introduced¹ Chapter 45-1 of the Customs Code of Kazakhstan.

As part of the experiment, goods intended for E-commerce may be imported through a customs warehouse, where they will be stored under the customs control, without payment of VAT, excise taxes, and customs duties until purchased by buyers.

Participants to the experiment are the relevant state authorities, individual buyers residing permanently or temporarily in Kazakhstan and electronic commerce operators.

A Kazakh entity conducting customs operations on E-commerce may act as an electronic commerce operator if the customs authorities admit the entity to participate in the implementation of the experiment.

Admission to participate in the implementation of the experiment is based on an application and compliance with the following requirements:

• The presence of premises or open areas designated for the temporary storage of E-commerce goods;
• The availability of an information system or authorized access to the information system of the customs authorities for electronic declaration of E-commerce goods.
• Conducting activities as a customs representative for at least one year as of the date of application for participation in the implementation of the experiment.

Electronic commerce operators will:

• Provide the customs authorities with information obtained from foreign electronic trading platforms regarding goods imported into Kazakhstan for individual recipients of such goods.
• Conduct customs declaration of the E-commerce goods.
• Calculate and pay customs duties and taxes;
• Perform customs operations regarding E-commerce goods.

It is expected that the new system will simplify the procedure for customs declaration of goods purchased by individuals on foreign electronic trading platforms and expedite the process of delivering goods to consumers.

After the completion of the experiment, the Ministry of Finance will evaluate the effectiveness of the experiment and the feasibility of making changes to the customs legislation.