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

Article 402. VAT not subject to offset

1. VAT not subject to offset is recognized as VAT payable in connection with the receipt of:

1) goods, works, services that are used or will be used for the purposes of non-taxable turnover, if a VAT payer applies the separate accounting method in accordance with Articles 407 and 409 of this Code;

2) cars that are (were) recognized as fixed assets;

3) goods, works, services, with regard to which:

a document, underlying the offset, does not indicate or incorrectly indicates the identification number of the person that issued such a document and (or) the person, to whom such a document was issued;

an invoice does not indicate the date of issuance of the document, the number of the invoice, the name of the goods, works, services, the amount of taxable turnover;

an invoice is not certified in accordance with the requirements of Article 412 of this Code;

the invoice was issued on paper in violation of the requirements of paragraph 1 of Article 412 of this Code, except for the case provided for by subparagraph 1) of paragraph 2 of Article 412 of this Code;

the invoice was issued on paper in accordance with subparagraph 2) of paragraph 2 and paragraph 2-1 of Article 412 of this Code and was not entered into the information system of electronic invoices;

4) goods, works, services paid for in cash inclusive of VAT under a civil law transaction regardless of the payment frequency and exceeds the 1000 times the monthly calculation index established by the law on the national budget and effective as of the date of payment;

5) goods, works, services that are used or will be used for the construction of a residential building intended for sale in the form of turnovers that are both exempt from and subject to VAT;

6) goods, works, services purchased for the money of a liquidation fund kept in a special deposit account with a bank in the territory of the Republic of Kazakhstan in accordance with Articles 252 and 253 of this Code;

7) goods, works, services purchased by the autonomous educational organizations, specified in paragraph 1 of Article 291 of this Code, for the money of a purpose-oriented contribution they received under the budget legislation of the Republic of Kazakhstan or non-repayable financing from the money of such a purpose-oriented contribution.

8) goods, works, services purchased by the lottery operator, which are used or will be used for the purpose of conducting lotteries.

2. VAT not subject to offset is:

1) VAT payable on goods, works, services purchased for the principal on conditions consistent with those of a commission agreement – with regard to the commission agent;

2) VAT payable on works, services purchased from a carrier and (or) other suppliers in case of performance of obligations under a freight forwarding agreement for the party that is the customer under such an agreement – with regard to a freight forwarder.

3. VAT on goods, works, services that are used or will be used for the construction of a residential building intended for sale in the form of turnovers that are both exempt from and subject to VAT, is accounted for in the tax register by a VAT payer, constructing the residential building, separately for the purposes specified in Article 410 of this Code, and is stated in a declaration before:

the sale or lease of a part of a residential building consisting exclusively of non-residential units;

the commissioning of such a residential building in accordance with the legislation of the Republic of Kazakhstan.

This VAT is subsequently accounted for in the manner specified in Article 410 of this Code.

In case of sale of such a building or its part before the occurrence of the cases, specified in part one of this paragraph, in the form of construction-in-progress, the amount of VAT, which is accounted for separately as of the date of such a sale, is reduced by the amount of VAT subject to offset, determined in accordance with paragraph 1 of Article 410 of this Code.

Footnote. Article 402 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).