On taxes and other obligatory payments to the budget (Tax Code)

Article 389. Taxation of goods realizable to the territory of a special economic zone

1. The sale to the territory of a special economic zone of goods that are fully consumed in the activity serving the purpose of creation of special economic zones as per the list of goods approved by the authorized state agency for state regulation in the field of establishment, operation and abolition of special economic and industrial zones in coordination with the authorized agency and the authorized agency for tax policy shall be liable to zero-rated VAT.

In this case, the taxpayer shall has the right to apply the VAT rate in accordance with Paragraph 1 of Article 422 of this Code for the goods specified in part one of this Paragraph.

For the purposes of this article, goods, specified in part one of this paragraph, shall be understood to mean goods (to be) placed under the customs procedure for free customs zone and being under customs control.

2. Documents confirming zero-rated turnovers from the sale of goods fully consumed in the activity serving the purpose of creation of special economic zones are as follows:

1) an agreement (contract) for the supply of goods with organizations operating on the territories of special economic zones, or a person who has concluded an investment agreement;

2) copies of a goods declaration and (or) transportation (carriage), commercial and (or) other documents along with the list of goods bearing marks of the customs body releasing goods under the customs procedure for free customs zone;

3) copies of shipping documents confirming the shipment of goods to the organizations specified in subparagraph 1) of this paragraph;

4) copies of documents confirming the receipt of goods by the organizations specified in subparagraph 1) of this paragraph.

3. A goods declaration in the form of an electronic document, received by tax authorities via communication data channels from customs bodies, is also a document confirming zero-rated turnovers. If a goods declaration is in the form of an electronic document provided for in this paragraph, it is not required to submit documents specified in subparagraph 2) of paragraph 2 of this article.

4. Suppliers of goods, realizable to the territory of a special economic zone, receive the refund of overpaid VAT with regard to imported goods that were actually consumed in the activity serving the purpose of creation of special economic zones.

5. When determining the amount of value added tax to be refunded in accordance with this Article, information from the customs authority confirming the actual consumption of imported goods in the course of carrying out activities that meet the goals of creating special economic zones, which are formed on the basis of data provided by a participant of the special economic zone or a person who has concluded an investment agreement shall be taken into account.

In case of non-fulfillment by a participant of the special economic zone or a person who has concluded an investment agreement of the conditions provided for in part one of paragraph 1 of this Article, goods placed under the customs procedure of the free customs zone shall be recognized as importable and shall be subject to value-added tax from the date of import of goods into the territory of the special economic zone with the accrual of penalties from the period established for the payment of value-added tax on imported goods, in the manner and amount determined by the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan.

Footnote. Article 389 as amended by the Law of the Republic of Kazakhstan dated 02.04.2019 No. 241-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 03.04.2019 No. 243-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021).