What is VAT in Kazakhstan in 2025: Who Pays and How to Calculate It

Most companies in Kazakhstan that sell goods and provide services, in addition to regular taxes, must also pay Value Added Tax (VAT). This tax is applied to the difference between the purchase price and the selling price. To compensate the seller or producer’s expenses, the VAT amount is included in the final price. The collected tax goes to the state budget and is used for current public needs.

Who is a VAT payer?

VAT obligations apply to businesses whose annual turnover exceeds 20,000 MCI (78,640,000 KZT in 2025). VAT payers include:

• Sole proprietors and partnerships

• Non-resident companies with branches or units in Kazakhstan

• Private specialists (e.g., appraisers, lawyers)

The 20,000 MCI is referred to as the VAT threshold in Kazakhstan. If turnover exceeds this amount, VAT registration becomes mandatory.

Can the threshold be increased?
Yes — in 2025, only for sole proprietors on the simplified tax regime (STR), if they meet all the following:

1. 1. Accept only non-cash payments

2. 2. Use digital tracking systems (online POS, cash registers, inventory tools)

If all conditions are met, the threshold can be increased to 124,184 MCI (488,291,488 KZT).

Who is exempt from VAT?

Businesses engaged in the sale of medicines, excise goods, and metals — including scrap — are not required to pay VAT. VAT exemption also applies to the following:

• Farmers and peasant farms operating under a special tax regime (STR).

  However, if they import goods for their business operations, they must pay VAT on the import.

• Companies producing spare parts for vehicles and agricultural equipment.

• Businesses paying retail tax.

• Businesses specializing in imports from free economic zones (FEZ).

  Note: These companies must meet certain regulatory requirements.

What is the VAT Rate in Kazakhstan

VAT is calculated based on the current applicable rate. As of today, there are two VAT rates in Kazakhstan:

1. 1. 0% Rate – This zero VAT rate applies to the export of goods. It also applies to companies providing services in the field of international transportation.

2. 2. 12% Rate – This standard VAT rate applies to all goods and services sold and rendered within Kazakhstan. It also applies to imported goods, regardless of the company’s turnover.

When to register for VAT

If your business turnover exceeds the threshold, you have 10 days to submit an application to the tax authority to register for VAT. Failure to do so will result in penalties. The fine is 50 MCI (approximately 196,600 KZT). Additionally, the business will have to pay 15% of the turnover for the delay period — a significant expense that can negatively affect business operations.

Some dishonest entrepreneurs try to hide their turnover to avoid paying VAT. However, such attempts are usually unsuccessful, as the tax authorities monitor businesses whose turnover is approaching the threshold.

What happens if an entrepreneur fails to register?
In this case, they will receive a notification from the tax office. After receiving it, the entrepreneur has 30 days to register. If they fail to do so, the company's bank accounts will be blocked.

How to Register for VAT

The procedure is very simple and can be done either offline or online:

• Offline: The entrepreneur fills out an application at the local office of the State Revenue Committee (OGD).

• Online: An electronic application can be submitted via the government portal Egov.kz.

As a result, the entrepreneur receives a certificate of VAT registration.

VAT Payment Deadlines

VAT returns must be submitted quarterly using Form 300.00. The declaration must be filed with the tax authority by the 15th of the month following the reporting quarter. Payment of the VAT amount is due by the 25th of the same month.

How to Pay VAT

The most convenient way to pay VAT is online — it is quick, secure, and takes minimal time. Taxpayers can choose from the following options:

1. 1. The Egov.kz portal (Electronic Government).

2. 2. The Taxpayer’s Cabinet (online tax account).

3. 3. The mobile app or internet banking of the bank where the business is served.

4. 4. The e-Salyq Azamat mobile app (electronic tax wallet).

Can the Amount of VAT Be Reduced?

Some categories of taxpayers are eligible for significant tax relief — up to 70%. This benefit is available for companies engaged in the production of food products, processing of fruits and vegetables, wool, animal hides, and other specified activities.

However, in order to qualify for the VAT reduction, the business must meet two conditions:

1. 1. The company must be a resident of Kazakhstan.

2. 2. The business must maintain separate accounting for products that qualify for preferential tax treatment.

The Government of Kazakhstan aims to stimulate domestic business and is actively working to reduce the tax burden on companies. One example of this effort is the relatively low VAT rate — one of the lowest among post-Soviet countries. For instance, VAT in Russia reaches 20%, in Belarus and Armenia it is also 20%, in Azerbaijan — 18%, and in Tajikistan — 14%.

In fact, Kazakhstan’s VAT rate is considered low even by global standards: France has a VAT rate of 20%, Italy — 22%, and Spain — 21%.

This article has been translated from its original language using neural network-based translation technology.