Kazakhstan delays VAT on foreign e-services to 2021

Kazakhstan has delayed until 1 January 2021 the imposition on non-resident providers of electronic services to consumers the obligation to charge 12% VAT. The measure was to be introduced in January 2020.

When the requirement does come into place, non-resident providers and marketplaces controlling the provision of the service will be obliged to register and charge Value Added Tax. The affected taxable services include: software provided over the internet; online advertising; posting ad’s for goods or services; customer data services; online data storage; downloads of media; e-books; and website services.

Providers will have to determine if Kazakh VAT applies based on the country of residence of their customer, their IP address, telephone number or credit card issuer.