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

Article 430. Refund of VAT on certain grounds

VAT subject to refund from the state budget is that:

1) paid to suppliers of goods, works, services that were purchased for the money of a grant in the manner prescribed by Article 435 of this Code;

2) paid by diplomatic missions and equivalent foreign representative offices, by consular offices of foreign states accredited in the Republic of Kazakhstan and by persons belonging to the diplomatic and administrative and technical staff of these missions, including their family members living with them, consular officers, consular employees, including their family members living with them, suppliers of goods, works, services, purchased in the territory of the Republic of Kazakhstan, in the manner prescribed by Article 436 of this Code;

3) paid to the state budget in excess in the manner prescribed by Articles 101 and 102 of this Code.
Article 431. The order and time limits for the refund of excess VAT

1. The refund of excess VAT shall be carried out by the taxpayer:

1) in the manner and terms established by this article, unless otherwise provided by Articles 432 and 434 of this Code;

2) on the basis of his requirement to refund the amount of excess VAT specified in VAT declaration for the taxable period.

2. Unless otherwise provided by Articles 432 and 434 of this Code, a refund of the excess amount of value added tax, confirmed by the results of the audit, is made to the taxpayer in the next period:

within fifty-five business days – to a taxpayer, whose zero-rated sales turnovers make up at least 70 percent of total taxable sales turnover in the taxable period, for which the refund of excess VAT amount is claimed;

in other cases - within seventy - five business days.

In this case, the period for the return of the amount of excess of value added tax begins after the expiration of thirty calendar days from the period established for the submission of a declaration on value added tax in accordance with paragraph 1 of Article 424 of this Code.

For the purposes of this paragraph, grounds for the refund of excess VAT amount are as follows:

1) a tax audit report confirming the reliability of excess VAT amount claimed for refund, taking into consideration the outcome of the appeal of the report (if appealed by the taxpayer);

2) an opinion on the tax audit report executed in the case specified in paragraph 13 of Article 152 of this Code.

3. Excess VAT is not refunded:

1) to a taxpayer carrying out settlements with the state budget under special tax regimes for:

small business entities;

peasant or farm enterprises;

producers of agricultural products, products of aquaculture (fish farming) and agricultural cooperatives;

2) to the taxpayer for the tax periods on which he applied the provisions of Article 411 of this Code.

4. The excess VAT amount, approved for refund from the state budget, shall be returned to the taxpayer in the manner specified in Article 104 of this Code.

5. The excess VAT amount, the refund of which a taxpayer claims in his/her/its declaration, which was returned from the state budget but not confirmed by the results of subsequent tax control, shall be paid to the state budget by the taxpayer in case of his/her/its consent in accordance with subparagraph 1) of part two of paragraph 2 of Article 96 of this Code pursuant to a notice on elimination of violations identified by the results of an in-house audit or an audit findings report.

If the excess VAT amount was refunded to a taxpayer with the accrual and transfer of a penalty for the benefit of this taxpayer in accordance with paragraph 4 of Article 104 of this Code, the penalty earlier transferred to the taxpayer and accrued on the excess VAT amount, returned but not confirmed by tax control results, shall be paid to the state budget in case of his/her/its consent in accordance with subparagraph 1) of part two of paragraph 2 of Article 96 of this Code pursuant to a notice on elimination of violations identified by the results of an in-house audit or an audit findings report.

6. The amounts specified in paragraph 5 of this article shall be paid to the state budget inclusive of penalties accrued for each day from the date of refund from the state budget, in the amount specified in paragraph 4 of Article 104 of this Code.

Footnote. Article 431 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 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).