The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan announces improvements to the mechanism for deferring the payment of value-added tax (VAT) on imported goods, as provided by Article 134 of the Tax Code of the Republic of Kazakhstan.

      The updated approach aims to increase transparency, predictability and convenience for bona fide manufacturers who import raw materials and inputs used directly in their production processes.

     Key updates:

      Clear criteria for eligible goods. VAT deferral applies only to imported raw materials and inputs directly used in production.

      Mandatory targeted use of goods. Failure to comply leads to cancellation of the deferral.

     VAT payment deadline may be adjusted, provided that the assessed amount is reflected in the taxpayer's account no later than the 20th day of the month following the deferral period.

     Restrictions on repeated use. If requirements are violated, the taxpayer is barred from using the deferral mechanism for 24 months.

     Security is required if the total amount of granted deferrals exceeds 50 million tenge.

     Ultimate objective:

      To ensure precise support for the manufacturing sector, exclude non-production goods from the VAT deferral mechanism, and enhance transparency and efficiency in the implementation of Article 134 of the Tax Code.

Source : https://www.gov.kz/memleket/entities/kgd/press/news/details/1122863?lang=kk