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Kyrgyzstan introduces electronic VAT filing 2014

  • Dec 28, 2013 | Richard Asquith

Kyrgyzstan introduces electronic VAT filing 2014

From 1 January 2014, taxable persons will only be able to file their Kyrgyzstani Value Added Tax returns online.

However, plans to move from monthly VAT returns to quarterly VAT returns look to have stalled, with the Ministry of Finance confirming that they are not ready for the changes. Monthly filings and payments of any VAT liabilities are due by the 25th of the month following the reporting month.

Kyrgyzstan VAT compliance

Businesses are required to register with the tax office for VAT if their turnover in the previous 12 months exceeds KGS 4 million (about €50,000). Companies may nevertheless make a voluntary registration if they are below this VAT registration threshold.

Kyrgyzstani VAT is chargeable at 12% (reduced from 20% in 2008). This is high for the Central Asian region, and means there are major problems with revenue collections and fraud. There is a limited range of taxable supplies charged at zero VAT (e.g. transport), and VAT exemptions for agricultural, foodstuffs and power supplies.

There is also a sales tax levied on non-resident businesses on certain goods.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.