Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

September 6, 2019

Kazakhstan proposes imposing VAT liability on nonresidents providing electronic services to individuals

The State Revenue Committee of the Republic of Kazakhstan (Kazakhstan) has proposed the introduction of a new Article 426-1 of the Tax Code, “Features of the fulfillment of Value Added Tax (VAT) liabilities by a nonresident providing services in electronic form to individuals.” The new provision would be effective as of 1 January 2020.

According to the proposed changes, a nonresident legal entity, when providing services to individuals in electronic form, will be required to register as a VAT payer and calculate VAT based on the turnover of services rendered if the place of supply of such services is the Kazakhstan (regardless of whether they have established a registered presence).

Electronic services would include:

  • Provision of computer programs via the Internet
  • Provision of advertising services on the Internet
  • Provision of services involving the posting of an offer to acquire (sell) goods (works or services) or property rights on the Internet
  • Provision of search and (or) provision of information about potential customers
  • Provision of technical, organizational, informational or other means to enable transactions between sellers and buyers via the Internet
  • Provision and (or) maintenance of a commercial or personal presence on the Internet
  • Storage and processing of information on the Internet
  • Provision of domain names and hosting services
  • Provision of services for the administration of information systems and sites on the Internet
  • Maintenance of statistics on internet sites
  • Sales of e-books, graphics, or music via the Internet

The place of supply of services in electronic form would be deemed to be in Kazakhstan if:

  • The “place of living” of the individual buyer is Kazakhstan
  • The location of the bank in which the account used by the individual buyer for the payment for services is opened, or the location of the electronic money operator through which the individual buyer makes payment for services, is Kazakhstan
  • The network address of the individual buyer used when purchasing services is registered in Kazakhstan
  • The international country code of the telephone number used to purchase or pay for the services is that assigned to Kazakhstan

Foreign organizations would have to calculate VAT at the rate of 12% of the value of services provided in electronic form and would have to submit VAT returns and pay VAT to the state budget each calendar quarter.

Issuing Kazakhstan statutory VAT-invoices by a nonresident for services in electronic form rendered to individuals is not currently required. VAT on goods (works or services) purchased by a nonresident for the provision of electronic services would not be allowed for offset.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Kazakhstan LLP, Almaty
  • Doniyorbek Zulunov |
  • Roman Yurtayev |
  • Danna Balafanova |
  • Alma Akhmetova |



The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more