Dear Readers,

The tax authorities launched1 Pilot Project on the Tax Administration of Electronic Commerce of Goods.

The stated objectives of the Pilot Project are:

  • Creation of a customer-oriented approach in the tax administration;
  • Elimination of errors and simplification of tax obligations for entrepreneurs engaged in E-commerce;
  •  Smooth distribution of the tax payment obligations over the tax period.

The participants of the Pilot Project are:

  • The tax authorities.
  • Operators of electronic trading platforms.
  • Second-tier partner banks.
  • Sellers on electronic trading platforms applying a special tax regime based on a simplified declaration or the special retail tax regime.

Participation in the Pilot Project is voluntary. To participate, operators, partner banks, and sellers submit applications to the tax authorities in an approved format.

The Pilot Project rules establish the following tax administration procedure:

  1. Operators of electronic trading platforms on a monthly basis provide the tax authorities with information on the value of the sellers’ proceeds and product returns;
  2. The tax authorities calculate the sellers’ tax liabilities and send the information on the assessed amounts to partner banks to generate push tax payment notifications for the sellers.
  3. The sellers pay the tax amounts indicated in the push notifications from the partner banks.
  4. The partner banks ensure pre-filling of tax declarations for the sellers based on information received from the tax authorities.
  5. If the tax authorities identify a seller failing to apply one of the two qualified special tax regimes, they inform the operator, and the operator notifies the seller of the non-compliance with participation conditions and exclusion from the Pilot Project.

The Pilot Project started on1 July 2023 and will run to 31 December 2024.

1Decree No. 725 of the Deputy Prime Minister - Minister of Finance of the Republic of Kazakhstan On the Approval of the Rules and Deadlines for the Implementation of the Pilot Project for the Application of a Different Procedure for the Tax Administration of Entrepreneurs Engaged in Electronic Commerce of Goods via an Electronic Trading Platform, dated 30 June 2023