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

Article 394. Turnover from the sale of goods, works, services exempt from VAT

Exempt from VAT are turnovers from the sale of goods, works, services, the place of sale of which is the Republic of Kazakhstan, such as:

1) those specified in Articles 395 - 398 of this Code;

2) accounting and control marks intended for labeling of excisable goods in accordance with Article 172 of this Code;

3) buildings and structures sold by the state Islamic special financing company to the authorized body for state property management, which were earlier acquired under contracts concluded in accordance with the terms of issuance of state Islamic securities, and land plots occupied by such property;

4) services provided by the state Islamic special financing company for temporary possession and use of a building, a structure, purchased under contracts concluded in accordance with the terms of issuance of state Islamic securities, under contracts of property lease (rent) and land plots occupied by such property;

5) property transferred free of charge to a state institution or a state-owned enterprise in accordance with the legislation of the Republic of Kazakhstan;

6) property in the form of winnings given by a lottery operator to a lottery participant;

7) services for providing information and technological interaction between settlement participants, including services for collecting, processing and distributing information to settlement participants in payment card and electronic money transactions;

8) services for the processing and (or) repair of goods imported into the customs territory of the Eurasian Economic Union under the customs procedure for processing in the customs territory;

9) services within the activity of the association of apartment building property owners for a condominium object management, carried out in accordance with the housing legislation of the Republic of Kazakhstan;

10) national currency banknotes and coins;

11) goods, works, services, provided that in the taxable period of a sale, and also in the four preceding taxable periods, one of the following conditions is observed:

the average number of disabled people is at least 51 percent of the total number of employees;

expenses for the remuneration of labor of disabled people make up at least 51 percent (in specialized organizations employing people with the loss of hearing, speech, vision - at least 35 percent) of total labor expenses.

The provisions of this subparagraph do not apply to turnovers from the sale of excisable goods.

As to turnovers from sale under long-term contracts, the provisions of this subparagraph shall apply if the conditions, established by this paragraph, are observed during the entire validity period of such a contract;

12) works, services for free repair and (or) maintenance of goods during the warranty period set by a deal, including the value of spare parts and their components, if the deal terms provide for the taxpayer’s warranty of goods sold, works performed, services rendered;

13) unless otherwise established by Article 392 of this Code, investment gold in the form of ingots and plates on the basis of a stock exchange transaction or if a party thereto is a second-tier bank, legal entities that in accordance with the Law of the Republic of Kazakhstan “On Currency Regulation and Currency Control” have the right to purchase and sell ingots of fine gold issued by the National Bank of the Republic of Kazakhstan through their exchange offices, a legal entity that is a professional securities market participant or the National Bank of the Republic of Kazakhstan;

14) was valid until 01.01.2019 in accordance with Law of the Republic of Kazakhstan No. 121-VI dated 25.12.2017;




15) tour operator services for inbound tourism;

16) provision of a credit (loan, microcredit) in cash on the terms of payment, urgency and repayment;

17) goods placed under the customs procedure for duty-free trade;

18) scrap and waste of non-ferrous and ferrous metals;

19) services for conducting religious rites and ceremonies by religious associations in accordance with the legislation of the Republic of Kazakhstan;

20) religious items by religious associations registered with registering authority.

The list of specified goods and criteria for its formation shall be approved by the Government of the Republic of Kazakhstan;

21) funeral services by funeral bureaus, services of cemeteries and crematoria;

22) special social services provided by non-commercial organizations in accordance with the legislation of the Republic of Kazakhstan on special social services;

23) services for conducting socially significant events in the field of culture, spectacular cultural events held as part of a state task in accordance with the legislation of the Republic of Kazakhstan on culture;

24) services for exercising cultural, educational, scientific and research functions by museums and ensuring the popularization of historical and cultural heritage of the Republic of Kazakhstan;

25) services for exercising information, cultural, educational functions by libraries;

26) services and works in the field of culture and education carried out by theaters, philharmonic societies, cultural and recreational organizations;

27) scientific and restoration works at historical and cultural sites conducted on the basis of a license for this type of activity;

28) educational services in the field of preschool education and training;

29) additional education services provided by an educational organization licensed for educational activity;

30) educational services in the field of primary, basic secondary, general secondary, technical and professional, post-secondary, higher and postgraduate education carried out under appropriate licenses for these types of activities;

31) services for conducting types of activities specified in subparagraph 2) of paragraph 1 of Article 291 of this Code by autonomous educational organizations meeting the requirements of subparagraph 2) or 4) of paragraph 1 of Article 291 of this Code;

32) services for the provision for temporary use of a library fund, also in electronic form, by educational organizations licensed for educational activity, as well as by autonomous educational organizations specified in subparagraphs 2), 4) and 6) of paragraph 1 of Article 291 of this Code;

33) medical products of any form, including pharmaceutical substances (active pharmaceutical substances), medical devices, including prosthetic and orthopedic products, and equipment for deaf and blind, as well as materials and components for their production;

34) medical products of any form used (applied) in the field of veterinary medicine, including pharmaceutical substances (active pharmaceutical substances); veterinary products, including prosthetic and orthopedic products, and veterinary equipment; materials and components for production of medical products of any form used (applied) in the field of veterinary medicine, including pharmaceutical substances (active pharmaceutical substances) and veterinary products, including prosthetic and orthopedic products, and veterinary equipment;

35) services in the form of medical assistance in accordance with the legislation of the Republic of Kazakhstan (including medical activity not subject to licensing) provided by a healthcare entity licensed to carry out medical activity;

36) services in the field of sanitary and epidemiological welfare of the population provided by the state sanitary and epidemiological service in accordance with the healthcare legislation of the Republic of Kazakhstan;

37) services rendered in the field of veterinary medicine:

by individuals or legal entities licensed to carry out the activity in the field of veterinary medicine;

by individuals or legal entities included in the state electronic register of permits and notifications for conducting entrepreneurial activity in the field of veterinary medicine provided for by the legislation of the Republic of Kazakhstan on veterinary medicine;

by state veterinary organizations established in accordance with the legislation of the Republic of Kazakhstan on veterinary medicine;

38) vehicles and (or) agricultural machinery, as well as their components while simultaneously observing the following conditions:

the composition of the vehicle and (or) agricultural machinery being sold, as well as their components, includes previously imported raw materials and (or) materials, as well as their components, which are exempt from value added tax in accordance with subparagraph 15) of paragraph 1 of Article 399 or subparagraph 4) paragraph 2 of Article 451 of this Code;

the import of raw materials and (or) materials, as well as components as part of the vehicle and (or) agricultural machinery being sold, as well as their components, was carried out by a legal entity selling these vehicles and (or) agricultural machinery, as well as their components;

vehicles and (or) agricultural machinery, as well as their components are included in the list of vehicles and (or) agricultural machinery, as well as their components, the sale of which is exempt from value added tax, approved by the authorized body in the field of state support for industrial activities as agreed with the central authorized body for state planning and the authorized body;

39) goods, works and services sold in the territory of the special economic zone, the limits of which fully or partially coincide with the sections of the customs border of the Eurasian Economic Union;

40) scientific research conducted on the basis of state-task contracts as well as contracts of state orders in priority areas in accordance with the legislation of the Republic of Kazakhstan on science;

Subparagraph 41) is in effect until 01.01.2027 according to Law of the Republic of Kazakhstan № 121-VI as of 25.12.2017.




41) goods, works and services realizable by an organization focusing on the improvement of the quality of loan portfolios of second-tier banks, whose sole shareholder is the Government of the Republic of Kazakhstan, by types of activities provided for in Article 292 of this Code;

42) services rendered by sports organizations on the basis of state-task contracts;

43) pharmaceutical services, services for the accounting and sale of medical products and medical devices as part of transfers from the budget to the social medical insurance fund for payment of the guaranteed volume of free medical assistance;

43-1) goods produced and sold in the territory of the special economic zone "Astana – new city", subject to the following conditions:

goods are completely consumed in the process of construction and commissioning of infrastructure facilities, hospitals, clinics, schools, kindergartens, museums, theaters, higher and secondary educational institutions, libraries, schoolchildren's palaces, sports complexes, administrative and residential complexes in accordance with the design estimate documentation;

goods are included in 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 agreement with the central authorized agency for state planning and the authorized agency;

existence of an agreement (contract) for supply of goods with organizations engaged in the construction of infrastructure facilities, hospitals, clinics, schools, kindergartens, museums, theaters, higher and secondary educational institutions, libraries, schoolchildren's palaces, sports complexes, administrative and residential complexes in the territory of the Astana - new city special economic zone;

existence of copies of shipping documents confirming the shipment of goods;

existence of copies of documents confirming receipt of goods by the buyer;

For the purposes of this Article, goods fully consumed during the construction process shall be understood to mean goods directly involved in the construction of infrastructure facilities, hospitals, clinics, schools, kindergartens, museums, theaters, higher and secondary educational institutions, libraries, schoolchildren's palaces, and sports complexes, administrative and residential complexes (with the exception of electricity, petrol, diesel fuel and water), provided that the supplier and buyer place such goods under the customs procedure of a free customs zone and being under customs control, if such goods shall be subject to placement under the free customs zone procedure in accordance with the customs legislation of the Republic of Kazakhstan.The list of the goods, specified in subparagraphs 33) and 34) of part one of this article, shall be approved by the authorized body for healthcare in coordination with the authorized body for the agro-industrial complex development, the central authorized body for state planning and the authorized body;

44) works and services performed and provided by the cinematographic organization for the investor in the production of films.

Subparagraph 45) shall remain in force before 01.01.2029 in accordance with the Law of the Republic of Kazakhstan dated 26.12.2018 No. 203-VI.




45) goods produced and sold by the participants of the Astana-Hub international technological park that meet the conditions of Paragraph 4-3 of Article 293 of this Code;

Subparagraph 46) shall remain in force before 01.01.2029 in accordance with the Law of the Republic of Kazakhstan dated 26.12.2018 No. 203-VI.




46) works, services sold by the participants of the Astana-Hub international technological park that meet the conditions of Paragraph 4-3 of Article 293 of this Code.

47) unless otherwise provided by subparagraph 43-1) of part one of this Article, goods produced and sold in the course of carrying out priority types of activity on the territory of special economic zones, while simultaneously observing the following conditions:

availability of an agreement (contract) for the supply of goods with organizations, carrying out their activity on the territory of special economic zones of the Republic of Kazakhstan;

availability of documents confirming the shipment of goods to a participant of the special economic zone;

availability of documents confirming the receipt of goods by the buyer - a participant of the special economic zone;

Note !

Subparagraph 48) shall be valid from 01.01.2023 to 01.01.2028 in accordance with the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII

48) vehicles and (or) agricultural machinery, household appliances and (or) consumer electronics devices, meeting the following conditions:

the selling legal entity is an authorized representative of the manufacturer of vehicles and (or) agricultural machinery, household appliances and (or) consumer electronics devices;

vehicles and (or) agricultural machinery, household appliances and (or) consumer electronics devices were purchased from the manufacturer without VAT in accordance with subparagraph 38) or subparagraph 53) of part one of this article.

For the purposes of this subparagraph, an authorized representative of a manufacturer of vehicles and (or) agricultural machinery, household appliances and (or) consumer electronics devices shall be a legal entity appointed by an authorized representative in the framework of the transaction concluded with the manufacturer of vehicles and (or) agricultural machinery, household appliances and (or) consumer electronics devices, and included in the register of authorized representatives applying the exemption from VAT when selling vehicles and (or) agricultural machinery, household appliances and (or) consumer electronics devices purchased from their manufacturer;

49) services of a designated operator, issued by single documents in accordance with the acts of the Universal postal union, for the transit of international postal items of designated operators of other member countries of the Universal postal union through the territory of the Republic of Kazakhstan;

50) was valid until 01.01.2023 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI.




51) goods, works, services free of charge within the framework of charitable assistance by a non-profit organization established in the form of a fund in accordance with the civil legislation of the Republic of Kazakhstan;

52) refined gold and (or) silver by entities producing precious metals to entities producing jewelry and other items operating in the territory of the Republic of Kazakhstan;

Subparagraph 53) is valid from 01.01.2023 to 01.01.2028 in accordance with the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII.




53) household appliances and (or) consumer electronics devices, as well as their components, while meeting the following conditions:

the sold household appliance and (or) consumer electronics device, as well as their components, include previously imported raw materials and (or) materials, as well as their components, which are exempt from VAT in accordance with paragraph 3 of Article 399 or paragraph 5 of Article 451 of this Code;

household appliances and (or) consumer electronics devices, as well as their components are included in the list of household appliances and (or) consumer electronics devices, as well as their components, the sale of which is exempt from VAT, approved by the authorized body in the field of state incentives for industry in coordination with the central authorized state planning body and the authorized body.

The list of the goods, specified in Subparagraphs 33) of part one of this Article, shall be approved by the authorized agency for the agro-industrial complex development by agreement with the central authorized agency for state planning and the authorized agency.

The list of goods specified in Subparagraph 34) of the part one of this Article shall be approved by the authorized agency for the agro-industrial complex development by agreement with the central authorized agency for state planning and the authorized agency.

The list of works and services specified in Subparagraph 44) of part one of this Article shall be approved by the central executive agency carrying out management and intersectoral coordination in the field of cinematography, by agreement with the central authorized agency for state planning and the authorized agency.

Footnote. Article 394 as amended by the Law of the Republic of Kazakhstan dated 26.12.2018 No. 203-VI (shall be enforced from 01.01.2019); dated 28.12.2018 No. 210-VI (shall be enforced from 01.01.2018); dated 28.12.2018 No. 211-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 03.01.2019 No. 213-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 18.03.2019 No. 237-VI (enters in force from 01.01.2018); dated 02.04.2019 No. 241-VI (shall be enforced from 01.07.2019);03.04.2019 No. 243-VI (shall be enforced upon expiry of ten calendar days after its first official publication); No. 284-VІ dated 26.12.2019 (shall be enforced upon expiry of ten calendar days after the day of its first official publication); dated 10.12.2020 No. 382-VI (see Article 2 for the procedure of entry into force); dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022); dated 21.12.2022 No. 165-VII (enforcement, see art. 4).