The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan (hereinafter referred to as the SRC MF RK), pursuant to paragraph 16 of the assignments of the Chairman of the SRC MF RK following the meeting of the Board of the SRC MF RK, reports the following.

In accordance with paragraph 3 of Article 99 of the Tax Code of the Republic of Kazakhstan (hereinafter referred to as the Tax Code), the following entities are not subject to mandatory registration as a value-added tax (VAT) payer:

a state institution;

a structural subdivision of a resident legal entity;

a person engaged in private practice;

a taxpayer applying a special tax regime;

an individual.

According to paragraph 4 of Article 99 of the Tax Code, for the purposes of registration as a VAT payer:

turnover is determined as the cumulative total sum of turnovers specified in subparagraphs 1) and 2) of paragraph 1 of Article 449 of the Tax Code from the date established by Article 101 of the Tax Code;

the maximum turnover threshold is a turnover equal to 10,000 times the monthly calculation index (MCI) in effect on January 1 of the corresponding financial year.

According to Article 448 of the Tax Code, the objects of VAT taxation are:

taxable turnover;

taxable import.

The first part of subparagraph 1) of Article 449 of the Tax Code establishes that taxable turnover includes, among other things, turnover generated by a VAT payer from the realization of goods, works, and services, with the exception of non-taxable turnover specified in Article 450 of the Tax Code.

In accordance with subparagraph 1) of paragraph 1 of Article 452 of the Tax Code, turnover from the realization of goods means, among other things:

transfer of ownership rights to goods, including:

sale of goods, shipment of goods, including under installment payment terms and/or in exchange for other goods, works, and services;

sale of an enterprise as a whole as a property complex;

transfer of goods free of charge;

transfer of goods by an employer to an employee to settle debt owed to the employee;

transfer of pledged property by a pledgor into ownership of a buyer or pledgee.

According to the first part of paragraph 2 of Article 452 of the Tax Code, turnover from the realization of works and services means any execution of works or rendering of services, including free of charge, as well as any activity for consideration other than the realization of goods.

In accordance with the first part of paragraph 1 of Article 461 of the Tax Code, unless otherwise provided by Article 462 of the Tax Code, the size of turnover from realization is determined as the value of the realized goods, works, and services based on the prices and tariffs applied by the parties to the transaction, excluding VAT, unless otherwise provided by the legislation of the Republic of Kazakhstan on transfer pricing.

Paragraph 1 of Article 503 of the Tax Code provides that, unless otherwise established by this Article, the VAT rate is 16 percent and applies to the amount of taxable turnover and taxable import.

According to paragraph 7 of Article 728 of the Tax Code, in the event of an obligation to register as a VAT payer for an activity not covered by the special tax regime for peasant or farm holdings, the taxpayer incurs an obligation to transition to the general tax regime.

Thus, if an obligation arises under paragraph 7 of Article 728 of the Tax Code to register as a VAT payer for an activity not covered by the special tax regime for peasant or farm holdings, the taxpayer incurs an obligation to transition to the general tax regime. Consequently, turnover from the realization of goods, works, and services by such a taxpayer applying the general tax regime is taken into account for VAT registration purposes, and such a taxpayer becomes a VAT payer for turnover from agricultural production and other activities.

In accordance with paragraph 11 of Article 716 of the Tax Code, in cases where conditions arise that prevent the application of a special tax regime, to transition to the general tax regime or another special tax regime, a taxpayer applying a special tax regime based on a simplified declaration or a special tax regime for peasant or farm holdings is obliged to submit a notification of the applied tax regime within five working days from the date such conditions arise.

The start date for applying another special tax regime or the general tax regime shall be the date on which such conditions arose.

According to paragraph 12 of Article 716 of the Tax Code, if the tax authority establishes, during a desk audit (cameral control), non-compliance of the taxpayer with the conditions established for the application of the relevant special tax regime, the tax authority sends the taxpayer a notification of discrepancies identified by the results of the desk audit, within the time limits and manner established by Articles 82 and 137 of the Tax Code.

If the taxpayer fails to submit a notification to the tax authority on transitioning to another special tax regime, the tax authority transfers such taxpayer to the general tax regime or terminates the application of the special tax regime for the self-employed if the self-employed person fails to submit a notification of commencement of activity as an individual entrepreneur in the case and manner provided for in paragraph 11 of Article 716 of the Tax Code.

In this case, for:

the special tax regime based on a simplified declaration or the special tax regime for peasant or farm holdings — the start date of applying the general tax regime is the date on which the non-compliance regarding the application of the special tax regime arose.

The termination date of the special tax regime based on a simplified declaration or the special tax regime for peasant or farm holdings is the date preceding the date on which the non-compliance regarding the application of the special tax regime arose.

Source : https://www.gov.kz/memleket/entities/kgd-zhetysu/press/news/details/1284259?lang=ru