Kazakhstan has implemented VAT on electronic services provided to consumers by non-resident providers commencing 1 January 2021.
Scope of e-services
The State Revenue Committee of Kazakhstan defines the income from the following services as liable to VAT:
Online advertising
Marketplace listing services for goods or electronic services
Advertising services
Search engine facilities
Storage and processing internet information
Offering domain name rights and hosting
Sale of computer programs (e.g. SaaS)
Internet data and statistics provision
Music, images and e-books provided over the internet
Services related to IT or internet sites delivered via the internet
Saas software and databases
E-books and similar digital versions of publications
Computer processing, including maintaining statistics
Determining residence of customer
Foreign providers will be required to track and determine if a customer is a Kazakh resident. They may use the following criteria to determine this and the place of supply:
Address of the consumer
Bank account location
IP address of the consumer
Telephone country code if purchase via phone
VAT compliance
Non-resident entities are expected to register for VAT from 2021. This will include submitting quarterly VAT returns to declare VAT charged. There is no facility to recover Kazakh input VAT suffered.
