Electronic services by non-residents come into VAT net
Kazakhstan has made foreign providers and marketplaces for digital or electronic services liable to Value Added Tax collection obligations from 1 January 2022. There is no VAT registration threshold, but there is a simplified registration process. Online sales of e-commerce goods from abroad were also included in the 2022 rules.
The current VAT rate in Kazakhstan is 12%. Subscribe to our frequent global VAT and GST news letter for other updates. VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.
What digital services are liable to Kazak VAT?
Income from the following services are subject to VAT:
- Intermediary services between sellers and buyers on marketplace platforms, including advertising and listing fees
- Download or streaming media
- Online storage and data processing
- Domain name services
Follow VAT Calc’s global VAT and GST on digital services tracker for live updates on worldwide reforms.
Determining if Kazakh VAT is due
Under the destination principle, providers of services must determine if their consumer is resident and/or enjoys the service in Kazakhstan. If so, the local VAT should be charged and collected. Providers may rely on the following evidence:
- Billing address of the customer
- Address of bank, credit card etc of payment method
- IP address of the device used to access the service
- International telephone line country code
VAT registration and compliance
Non-residents are not required to issue VAT invoices. Once VAT registered, returns should be completed on a quarterly basis. Filings are due by the 25th of the following month, along with any VAT due.
Asia Pacific VAT on digital services
|Comments (click for details)||Rate||Date||Threshold||Comments|
|Australia||10%||Jul 2017||AUD $75,000|
|Armenia||20%||Jan 2022||AMD 115million|
|Bangladesh||5% - 15%||Jul 2019||–||B2B and B2C|
|Bhutan||7%||Jul 2021||Nu 5million|
|Cambodia||10%||Mar 2022||KHR 250m|
|China||6%-13%||N/a||Nil||Withholding VAT; B2B and B2C|
|Indonesia||11%||Aug 2020||IDR600m or 12k customers|
|Japan||10%||Oct 2015||JPY 10 million|
|Laos||7%||Feb 2022||LAK 400m|
|Nepal||13%||Jul 2022||Rupees 2m||Also 2% DST|
|New Zealand||15%||Oct 2016||NZD 60,000|
|Pakistan||2%||Sep 2021||Nil||Marketplace Withholding VAT|
|Singapore||7%||Jan 2020||S$ 100,000|
|South Korea||10%||Jul 2015||Nil|
|Taiwan||5%||May 2017||NTD 480,000|
|Thailand||7%||Sep 2021||1.8m Baht|