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      Dear Readers,

      Kazakhstan’s tax authorities continue to strengthen their monitoring and enforcement of tax compliance by foreign digital businesses operating in the country. Recent developments show that the authorities are already applying access restrictions where foreign internet platforms fail to comply with tax requirements.

      Kazakhstan Restricts Access to Farfetch

      The State Revenue Committee recently reported that access to Farfetch in Kazakhstan had been restricted after the company failed to comply with a desk tax audit notice. Farfetch is an international online platform, operated by a UK-registered entity, through which clothing, footwear and accessories are sold.

      According to the State Revenue Committee, Farfetch did not comply with the notice and, as a result, access to its internet resource in Kazakhstan was restricted. The authorities have stated that such measures are applied, in accordance with Kazakhstan legislation, to foreign internet platforms that fall within the relevant requirements and fail to fulfil their tax obligations to the Kazakhstan state budget.

      The recent enforcement activity highlights the following key points:

      • Foreign companies supplying digital services or operating online platforms in Kazakhstan must register for VAT purposes and pay the applicable VAT in Kazakhstan;
      • The Kazakhstan tax authorities are actively monitoring compliance by foreign digital businesses;
      • Failure to comply with desk tax audit notices may lead to enforcement measures, including restrictions on access to an internet resource in Kazakhstan;
      • Foreign digital businesses should assess both their historical and ongoing Kazakhstan VAT obligations;
      • Potential compliance gaps should be addressed proactively before they result in further tax administration or enforcement measures.
      Our professionals in Kazakhstan are ready to support foreign digital businesses with VAT registration, compliance reviews, assessment of historical and ongoing obligations, and communications with the Kazakhstan tax authorities.
       
      Businesses operating in Tajikistan or Kyrgyzstan are also welcome to contact our team to discuss their tax obligations and support needs.

      Contacts

      Vyacheslav Sosnovskiy


      Partner, Tax and Legal
      KPMG Caucasus and Central Asia
      VSosnovskiy@kpmg.kz

      Yuliya Vakhrusheva


      Senior Manager, Indirect Tax
      KPMG Caucasus and Central Asia
      yvakhrusheva@kpmg.kz

      Madina Mukhtarbekova


      Senior Consultant, Indirect Tax
      KPMG Caucasus and Central Asia 
      mmukhtarbekova@kpmg.kz