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Dear Readers,

On 8 July 2024, the President signed amendments1 to the Tax Code. One of the changes regulates the VAT exemption for household electronic appliances. Another change is related to amendments in the legislation on specially protected natural areas.

VAT Exemption for Household Electronic Appliances

In the updated version of the article regulating the procedure for VAT exemption for the sale of household electronic appliances, it is clarified that this benefit is granted not only to manufacturers and their authorized representatives but also to other vendors selling household appliances under the following conditions:

  1. For manufacturers – the sold appliances (and/or their components) include previously imported raw materials exempt from VAT under the benefits[1] provided by special investment contracts.
  2. For authorized representatives – the household electronic appliances and their components are purchased from the manufacturers without VAT in accordance with the aforementioned norms of the Tax Code.
  3. For other vendors – the goods are purchased from the manufacturers or authorized representatives without VAT in accordance with the above-mentioned norms of the Tax Code.

To apply these benefits, the sold household electronic appliances (and/or their components) must be on the list approved by the authorized body. Additionally, the seller must be in the approved register of manufacturers, their representatives, and other selling persons.

Payment for the Use of Specially Protected Natural Areas

The amendments excluded from the Tax Code provisions for collecting fees for the use of specially protected natural territories. Now, the legislation on specially protected natural territories will regulate these fees. As a result, the fees will go directly to the budgets of national parks and be used for their needs, rather than going to the state budget. Corresponding changes were introduced to the Budget Code.

These changes will come into effect on 21 July 2024.

1 Law No. 119-VIII of the Republic of Kazakhstan On Amendments to the Code of the Republic of Kazakhstan 'On Taxes and Other Mandatory Payments to the Budget' (Tax Code), dated 8 July 2024

2 In accordance with paragraph 3 of Article 399 and paragraph 5 of Article 451 of the Tax Code, which stipulate that a taxpayer who has concluded a special investment contract is entitled to apply for VAT exemption when importing goods as part of finished products produced in a special economic zone or a free warehouse, subject to certain conditions.