On January 1, 2016, the Tax Code of Kazakhstan was amended in relation to administration of indirect taxes within the Customs Union. In accordance with the agreement on establishment of the Eurasian Economic Union (EEU), if the goods imported from one EEU member state to another are not in the category of excise goods, the taxes for the cargo are collected by the competent specialized services of the country which imports the goods.
In this regard, some regulations have been amended and supplemented. For example, Chapter 37-1 of the Tax Code of Kazakhstan (“On taxes and other forms of compulsory payments to the budget") was added a regulation entitled “The aspects of taxation of added value in the process of importing and exporting goods, providing services and performing works in the Customs Union." Furthermore, amendments were made to Article 276-2 to determine who shall pay VAT on imports.
Worth noting, these legislative novelties do not apply to the law, according to which no taxes are imposed on carrying vehicles that are not designed for business and belong to other EEU member states. Worth adding, goods imported on a temporary basis (for exhibitions and fairs) from EEU member states to Kazakhstan do not belong to the category of taxable imports.
In the case of imports of raw materials for processing, the Kazakh taxpayers shall assume obligations to export the products of processing, with an authorized state body approving the procedure and time.
In addition, the new amendments eliminate the tax statements for importation of non-commercial vehicles into the territory of Kazakhstan from EEU member states.