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

Article 427. Payment of VAT on imported goods using the method of offsetting

1. The value added tax shall be paid by the offset method in the manner prescribed by this Article by the payers of the value added tax specified in subparagraph 1) of paragraph 1 of Article 367 of this Code for the following goods placed under the customs procedure of release for domestic consumption:

1) equipment;

2) agricultural machinery;

3) freight rolling stock of motor vehicles;

4) helicopters and airplanes;

5) railway locomotives and cars;

6) sea vessels;

7) spare parts;

7-1) pesticides;

7-2) breeding animals and equipment for artificial insemination;

7-3) live cattle.

8) excluded, in accordance with the Law of the Republic of Kazakhstan dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022).

9) excluded, in accordance with the Law of the Republic of Kazakhstan dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022).

10) excluded, in accordance with the Law of the Republic of Kazakhstan dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022).




The list of the above goods and the order of its formation are determined by the authorized body for tax policy.

This list shall include goods that are not produced in the territory of the Republic of Kazakhstan.

This list shall include goods specified in subparagraphs 7-1), 7-2) and 7-3) of the first part of this paragraph, which do not cover the needs of the Republic of Kazakhstan.

2. The provisions of this Article regarding the payment of value added tax by the offset method shall be applied in respect of goods imported by the payer of value added tax specified in subparagraph 1) of paragraph 1 of Article 367 of this Code:

1) which are not intended for subsequent sale;

2) for their transfer into financial lease, except for transfer into international financial lease;

3) which are specified in subparagraph 7) of part one of paragraph 1 of this article, used in the production of agricultural machinery, included in the list approved by the authorized body for the agro-industrial complex development in coordination with the central authorized body for state planning and the authorized body.

3. The release of the goods specified in paragraph 1 of this article for domestic consumption is made without the actual payment of value added tax, provided that customs payments and excise taxes are paid for excisable goods in the prescribed manner.

4. The amount of VAT paid using the method of offsetting is indicated in a VAT declaration with regard to both the assessment and offset in accordance with the procedure established by the tax legislation of the Republic of Kazakhstan.

In case of violation within five years from the date of release of goods for domestic consumption on the territory of the Republic of Kazakhstan of the requirements established by paragraphs 1 and 2 of this article, the VAT on imported goods is subject to payment with the accrual of penalties from the period established for the payment of VAT for 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.

In this case, the below mentioned cases are not violations of the requirements established by this article:

1) excluded, in accordance with the Law of the Republic of Kazakhstan dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022);




1-1) the sale of meat and meat products obtained as a result of forced slaughter of animals specified in subparagraphs 7-2) and 7-3) of the first part of paragraph 1 of this article, or the loss (mortality) of such animals within the natural loss rates.

The forced slaughter procedure and the natural loss rates shall be approved by the authorized body in the agro-industrial complex development;

2) exportation in accordance with the procedure for re-export of earlier imported goods;

3) deregistration for VAT after the goods’ release;

4) disposal (write-off) of goods as a result of an accident, crash and (or) malfunction upon availability of a document confirming the impossibility of restoring the specified goods.

5. The sale of goods on which the VAT on imported goods was paid by the offset method, after five years from the date of their release for domestic consumption in the territory of the Republic of Kazakhstan, is not subject to value added tax on imported goods.

The provisions of this paragraph also apply to the sale after December 31, 2008 of goods imported through December 31, 2008 for own production, on the import of which VAT was paid using the method of offsetting.

6. Turnovers from the sale of goods specified in paragraph 1 of this article, on which VAT was paid using the method of offsetting, are exempted from VAT when transferred into financial lease.

The provision of this paragraph also applies to the transfer into financial lease after December 31, 2008 of goods imported through December 31, 2008 for own production, on which VAT was paid using the method of offsetting.

Footnote. Article 427 as amended by Law of the Republic of Kazakhstan No. 268-VI dated 28.10.2019 (shall be enforced upon expiry of ten calendar days after the day of its first official publication); dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021); dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022); dated 11.07.2022 No. 135-VII (enforcement, see art. 3).

Article 428 is in effect until 01.01.2025 according to Law of the Republic of Kazakhstan № 121-VI as of 25.12.2017.



Article 428. Payment of VAT on goods imported into the territory of the Republic of Kazakhstan from the territory of the member states of the Eurasian Economic Union using the method of offsetting

1. The value added tax shall be paid by the offset method in the manner determined by this Article by the payers of the value added tax specified in subparagraph 1) of paragraph 1 of Article 367 of this Code for the following goods imported into the territory of the Republic of Kazakhstan from the territory of the member states of the Eurasian Economic Union:

1) equipment;

2) agricultural machinery;

3) freight rolling stock of motor vehicles;

4) helicopters and airplanes;

5) railway locomotives and cars;

6) sea vessels;

7) spare parts;

7-1) pesticides;

7-2) breeding animals and equipment for artificial insemination;

7-3) live cattle.

8) excluded in accordance with the Law of the Republic of Kazakhstan dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022).

9) excluded in accordance with the Law of the Republic of Kazakhstan dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022).

10) excluded in accordance with the Law of the Republic of Kazakhstan dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022).




The list of the above goods and the order of its formation are determined by the authorized body for tax policy.

This list shall include goods that are not produced in the territory of the Republic of Kazakhstan.

This list shall include goods specified in subparagraphs 7-1), 7-2) and 7-3) of the first part of this paragraph, which do not cover the needs of the Republic of Kazakhstan.

2. The provisions of this Article regarding the payment of value added tax by the offset method shall be applied in respect of goods imported by the payer of value added tax specified in subparagraph 1) of paragraph 1 of Article 367 of this Code:

1) which are not intended for subsequent sale;

2) for their transfer into financial lease, except for transfer into international financial lease;

3) which are specified in subparagraph 7) of part one of paragraph 1 of this article, used in the production of agricultural machinery, included in the list approved by the authorized body for the agro-industrial complex development in coordination with the central authorized body for state planning and the authorized body.

3. The payer of the value added tax specified in subparagraph 1) of paragraph 1 of Article 367 of this Code, along with an application for the import of goods and payment of indirect taxes, shall submit to the tax authority:

1) documents specified in paragraph 2 of Article 456 of this Code;

2) documents describing basic technical, commercial characteristics of goods, allowing to classify a product under a specific tariff subheading of the single Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union. If necessary, photographs, pictures, drawings, product passports, specimens, samples of goods and other documents are presented.

4. The goods specified in paragraph 1 of this article are imported without actual payment of VAT, provided that excise duties on excisable goods are paid in accordance with established procedure.

5. The amount of VAT paid using the method of offsetting is indicated in a VAT declaration with regard to both the assessment and offset in accordance with the procedure established by the tax legislation of the Republic of Kazakhstan.

In case of violation within five years from the date of importation of goods into the territory of the Republic of Kazakhstan of the requirements established by paragraphs 1 and 2 of this article, the VAT on imported goods is subject to payment with the accrual of penalties from the period established for the payment of VAT when importing goods, in the manner and amount determined by the tax legislation of the Republic of Kazakhstan.

In this case, the below mentioned cases are not violations of the requirements established by this article:

1) excluded, in accordance with the Law of the Republic of Kazakhstan dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022);




1-1) the sale of meat and meat products obtained as a result of forced slaughter of animals specified in subparagraphs 7-2) and 7-3) of the first part of paragraph 1 of this article, or the loss (mortality) of such animals within the natural loss rates.

The forced slaughter procedure and the natural loss rates shall be approved by the authorized body in the agro-industrial complex development;

2) deregistration for VAT after the date of recognition of imported goods, determined in accordance with Article 442 of this Code;

3) disposal (write-off) of goods as a result of an accident, crash and (or) malfunction upon availability of a document confirming the impossibility of restoring the specified goods.

6. Turnovers from the sale of goods specified in paragraph 1 of this article, on which VAT was paid using the method of offsetting, are exempted from VAT when transferred into financial lease.

7. The provisions of this article also apply to

goods imported into the territory of the Republic of Kazakhstan from the territory of the member states of the Eurasian Economic Union under lease agreements (contracts) with regard to the amount of VAT attributable to the amount of a lease payment provided for by the lease agreement exclusive of remuneration.

Footnote. Article 428 as amended by Law of the Republic of Kazakhstan No. 268-VI dated 28.10.2019 (shall be enforced upon expiry of ten calendar days after the day of its first official publication); dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021); dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022); dated 11.07.2022 No. 135-VII (enforcement, see art.3).

Chapter 49. RELATIONS WITH THE STATE BUDGET WITH REGARD TO VAT