VAT in Kazakhstan

Standard VAT rate — 16% (from 1 January 2026)

The standard VAT rate in Kazakhstan is 16% under the Tax Code No. 214-VIII effective 1 January 2026 — increased from 12% under the previous Tax Code No. 120-VI dated 25 December 2017. VAT is levied on: the supply of goods and services in Kazakhstan by VAT-registered taxpayers; the import of goods into Kazakhstan; and the receipt of services from foreign suppliers where the place of supply is deemed to be Kazakhstan (reverse charge). VAT-registered entities collect output VAT on their taxable supplies and offset it against input VAT on their purchases — paying the net VAT to the state budget.

VAT registration threshold and obligations

Kazakhstani legal entities conducting taxable activities with annual turnover exceeding the VAT registration threshold are required to register for VAT. Voluntary registration is also available below the threshold. Foreign companies without a registered presence in Kazakhstan but supplying digital services to Kazakhstani consumers are subject to VAT registration obligations under the electronic services VAT rules. Bond Stone advises on VAT registration obligations for foreign investors establishing operations in Kazakhstan. The VAT registration threshold under the new Tax Code is 10,000 MCI per calendar year (KZT 43,250,000 in 2026, at the 2026 MCI of KZT 4,325) — reduced from 20,000 MCI under the previous Tax Code, which will bring more businesses into the VAT net from 2026.

Import VAT

Goods imported into Kazakhstan are subject to VAT at the point of importation — VAT at the standard rate (16% from 1 January 2026) on the customs value plus customs duties. Import VAT is generally recoverable by VAT-registered importers as input VAT in the VAT period of importation. However, VAT on imports of goods placed under specific customs procedures — such as the free customs zone procedure in SEZs — is not payable while the goods remain under that procedure. Bond Stone advises on import VAT planning for investors importing equipment, components, and raw materials into Kazakhstan.

Reverse charge — foreign services

Services received from foreign suppliers are subject to reverse charge VAT where the place of supply is deemed to be Kazakhstan — the Kazakhstani recipient accounts for output VAT on the service value and simultaneously deducts it as input VAT (subject to normal input VAT deduction rules). Common affected services: management services, technical services, IT services, licences, and royalties received from foreign group entities. Bond Stone advises on reverse charge VAT obligations as part of intercompany structuring mandates.

VAT refund — construction of production buildings

Under Article 129 of Tax Code No. 214-VIII, a VAT payer buying goods, works and services for the construction, under a long-term contract, of production buildings and structures first commissioned in Kazakhstan may reclaim excess VAT on those purchases, following a thematic tax audit. This is a general rule and does not depend on an investment contract. Bond Stone advises on the VAT refund application procedure and documentation requirements.

SEZ — VAT under the free customs zone procedure

Goods placed under the free customs zone (FCZ) procedure within a Kazakhstani Special Economic Zone bear no import VAT while they remain under that procedure. When goods are transferred from the SEZ into the Kazakhstani domestic market (i.e. released for free circulation), import VAT and customs duties become payable. Bond Stone advises SEZ residents on managing VAT under the FCZ procedure and on the VAT implications of goods flows between the SEZ and the domestic market.