VAT: Recent amendments to the tax laws of the Republic of Kazakhstan on VAT registration matters
The Tax Code of the Republic of Kazakhstan 'On Taxes and Other Mandatory Payments to Budget' (the Tax Code), dated 10 December 2008, has been amended in the part concerning VAT registration and de-registration by the Law of the Republic of Kazakhstan 'On Amending Certain Regulatory Legal Acts of the Republic of Kazakhstan on Improving Civil and Banking Laws and the Conditions for Entrepreneurial Activities', dated 27 February 2017.
We would like to draw your attention to the following key aspects.
Mandatory VAT registration
The application for VAT registration now allows for an electronic application, whereas previously, the first heads of resident companies, non-residents carrying out activities in the RK via a branch or representative offices and individual entrepreneurs were required to appear at the competent body in person.
Furthermore, the application procedure for VAT registration has been simplified, namely:
- The photographing procedure of the first head of a resident Kazakhstan company/individual entrepreneur has been abrogated;
- The applicants are now recognized as VAT payers from the date of submission of the VAT registration application, whereas previously it was from the first day of the month following the month of filing the application;
- The deadline for VAT registration is reduced from five business days to one day from the date of submission of the tax application;
- The full list of required documents has been expressly stipulated, whereas previously, due to the absence thereof, additional documents were required, i.e., confirmation of the taxpayer's location and/or clarification of the current excess of the minimum taxable turnover.
Voluntary VAT registration
The changes provide for voluntary VAT registration. Along with personal submission of the tax application, two options for voluntary VAT registration have been introduced:
- By filing an electronic application;
- At the state registration of a resident company in the national register of business identification numbers.
Besides, the following amendments have been introduced:
- The list of documents attached when filing a VAT registration application has been abolished;
- The grounds for refusal of VAT registration have been excluded; namely, the state body cannot refuse voluntary VAT registration;
- The deadline for voluntary VAT registration has been reduced
from five business days to one from the date of submission of the
tax application. Hence, applicants become VAT payers:
- from the date of submission of a VAT registration application, when submitting such in person or in electronic form;
- from the date of state registration in the national register of business identification numbers, for a resident Kazakhstan company at state registration.
The list of grounds for VAT de-registration has been amended pursuant to the decision of the tax authority without notification of the taxpayer:
- The provision on de-registration in the absence of excess of the minimum turnover for VAT registration purposes has been eliminated;
- If the head/sole founder (participant) of a company is inactive, or if he is the head/sole founder of a dormant company, the taxpayer is subject to de-registration from the date of VAT registration;
- A taxpayer deemed inactive is de-registered from the date of the decision of the tax authority on VAT de-registration.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.