Kazakhstan withdraws VAT
- Sep 25, 2015 | Richard Asquith
Kazakhstan has approved plans to withdraw its Value Added Tax regime next year. It will be replaced with a simple Sales Tax. This will be levied at 12%, too, on cash payments. To discourage non-disclosure, there will be a discount on this for invoices settled by bank transfers – the rate will be 7%.
VAT in Kazakhstan is currently 12%, and is charged by all business entities with an annual turnover above MCI 30,000. Foreign companies cannot register for the VAT, but their customers will typically be required to withhold the VAT from invoice payments.