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

Article 400. VAT subject to offset

1. The amount of VAT subject to offset by a recipient of goods, works, services that is a VAT payer in accordance with subparagraph 1) of paragraph 1 of Article 367 of this Code is the amount of VAT payable for received goods, works and services, provided that they are used or will be used for the purposes of taxable turnover from sale and specified:

1) in case of purchase of goods, works, services, except for the cases provided for in subparagraphs 2) and 3) of this paragraph - in one of the following documents indicating VAT and a supplier tax identification number:

an invoice or a travel ticket (in hard copy, an electronic ticket, an electronic travel document) issued by a supplier that is a VAT payer as of the date of issuance of the invoice;

a document confirming the fact of travel by air transport issued by a supplier who is a payer of value added tax as of the date of issue of such documents;

an invoice issued in accordance with Article 414 of this Code concerning the value of print periodicals and other media products received in a reporting taxable period, including those posted on an Internet resource in public telecommunications networks;

an invoice for the release of goods from the state material reserve issued by a structural unit of the authorized agency for state material reserves. The amount of VAT shall be determined using the formula below, but it shall not exceed the amount of tax paid at the goods’ delivery to the state material reserve:

VAT = Vmg х Rvat / (100 % + Rvat), where:

VAT - the amount of VAT;

Vmg - the value of manufactured goods liable to VAT;

Rvat - VAT rate effective as of the date of release of the goods;

2) in case of import of goods - in the declaration for goods, drawn up in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan, but not more than the amount of tax paid to the budget of the Republic of Kazakhstan and non-refundable in accordance with the terms of the customs procedures, or in an application (applications) for the import of goods and payment of indirect taxes, but not more than the amount of tax paid to the budget of the Republic of Kazakhstan and not subject to refund;

3) in case of purchase of works, services provided by a non-resident, which are the turnover of the buyer of such works or services - in a VAT declaration, but not exceeding the amount of tax indicated in a payment document or a document issued by a tax authority in the form established by the authorized body and confirming the payment of VAT;

4) in case of VAT registration of a person specified in subparagraph 1) of paragraph 1 of Article 367 of this Code - in a tax register drawn up by such a person in accordance with paragraph 4 of Article 215 of this Code for goods purchased, produced by the taxpayer prior to the date of his/her/its VAT registration and owned by him/her/it as of the date of VAT registration, provided that such an amount is confirmed in keeping with either subparagraph 1) or 2) of this paragraph.

The provisions of this subparagraph do not apply to goods received by a new legal entity established as a result of reorganization.

2. In case of receipt of services by an individual, expenses for which are recognized as VAT payer’s expenses, in accordance with international financial reporting standards and legislation of the Republic of Kazakhstan on accounting and financial reporting, and allocated to deductibles as compensation for business trips in accordance with Article 244 of this Code, such a VAT payer is entitled to offset the amount of VAT on these services provided that the requirements of subparagraph 1) of paragraph 1 of this article are met.

3. If there are several grounds for offsetting VAT amounts indicated in paragraph 1 of this article, VAT amount may be offset only once on the earliest ground.

4. If cases provided for in Articles 403, 404 and 405 of this Code occur in the taxable period, determined in accordance with Article 401 of this Code, the amount of VAT subject to offset shall be determined with account of exclusion, increase or reduction provided for by Articles 403, 404 and 405 of this Code.

5. The value added tax credit shall be subject to reduction by the amount of excess value added tax after fulfilling the requirement specified in subparagraph 3) of part one of paragraph 1 of Article 369 of this Code in connection with deregistration of the taxpayer for value added tax, in the tax period in which the liquidation declaration for value added tax was submitted.

Note!

Subparagraph 6 shall be valid from 01.01.2022 to 01.01.2024 in accordance with the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII.

6. The amount of VAT that does not comply with the provisions of this article, as well as the VAT specified in Article 402 of this Code, shall be recognized as the amount of VAT that is not offset, except for the case provided for in paragraph 8 of this article

7. was valid until 01.01.2022 in accordance with the Law of the Republic of Kazakhstan dated 27.12.2019 No. 295-VI.

Note!

Subparagraph 8 shall be valid from 01.01.2022 to 01.01.2024 in accordance with the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII.

8. The VAT amount on goods, works, services used or to be used by the National infrastructure operator to provide a railway carrier operating in the transportation of passengers, baggage, cargo luggage, postal items, services of the main railway network when carrying passengers by rail on a gratuitous basis, including with the application of a temporary reduction factor of 0 to the tariff on regulated services of the main railway network when transporting passengers by rail in accordance with the legislation of the Republic of Kazakhstan, is subject to offset with observance of the conditions established by paragraph 1 of this article.

Footnote. Article 400 as amended by the Law of the Republic of Kazakhstan dated 02.04.2019 No. 241-VI (shall be enforced from 01.01.2019); No. 295-VІ dated 27.12.2019 (shall be enforced since 01.01.2020); dated 10.12.2020 No. 382-VI (see Article 2 for the procedure of entry into force); dated 21.12.2022 No. 165-VII (shall be effective from 01.01.2022 to 01.01.2024).