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

Article 433. Features of refunding excess of VAT to a VAT payer using VAT control account

Footnote. Article 433 is 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).
Article 434. Simplified procedure for the refund of excess VAT

1. The simplified procedure for the refund of excess VAT means the refund of excess VAT without conducting a tax audit.

2. The following value-added tax payers who have submitted value-added tax declarations indicating the requirement to refund the amount of excess of value-added tax and who do not have an unfulfilled tax obligation to submit tax reports on the date of submission of the value-added tax declaration shall have the right to apply a simplified procedure for the refund of excess of value-added tax:

1) being on tax monitoring for at least twelve consecutive months;

2) manufacturers of goods of own production, the list of which is approved by the authorized body in the field of regulation of trading activities in agreement with the authorized body and the authorized body in the field of tax policy;

3) exporters of raw materials when converting at least 50 percent of the foreign exchange gains received during the taxable period.

The list of exporters of raw materials provided for by this subparagraph shall be approved by the Government of the Republic of Kazakhstan.

The submission of the conclusion to the tax authorities on the conversion of currency revenue is carried out by the National Bank of the Republic of Kazakhstan and second -tier banks in the manner and in the form approved by the authorized body in agreement with the National Bank of the Republic of Kazakhstan.

To obtain the conclusion specified in part two of this paragraph, the tax authorities send the corresponding request for the conversion of currency revenue as of the date of the preparation of such a conclusion.

In case of reorganization through division, separation, transformation of a taxpayer that is subject to tax monitoring, meets the requirements provided for in this paragraph, the right to apply the simplified procedure for the refund of excess VAT is transferred to a successor (successors) of the reorganized person.

Unless otherwise provided by this paragraph, in the event of reorganization by merger or accession of the taxpayers specified in subparagraph 1) of part one of this paragraph, the right to apply a simplified procedure for the refund of excess value added tax shall passe to the legal successor, provided that all legal entities reorganized by merger or accession were taxpayers who met the requirements provided for by this paragraph before the reorganization.

In case of reorganization through merger or incorporation of a taxpayer that is a legal entity subject to tax monitoring in accordance with the decision of the Government of the Republic of Kazakhstan, the right to apply the simplified procedure for the refund of excess VAT is transferred to its successor.

The provisions of part four of this paragraph shall apply, provided all of the following requirements are met:

one of the legal entities under reorganization through merger and (or) incorporation is a taxpayer subject to tax monitoring and meets the requirements provided for in part one of this paragraph;

controlling interest in one of the legal entities under reorganization through merger and (or) incorporation belongs to the national management holding as of the date of reorganization.

During the reorganization by merging or joining of taxpayers specified in subparagraphs 2) and 3 of part one of this paragraph, such taxpayers have the right to apply a simplified procedure for return of the excess of value added tax after a tax audit in the manner established by Article 152 of this Code. At the same time, the tax period is included in the tax period in which the reorganization is carried out.

The right to apply the simplified procedure for the refund of excess VAT with regard to the successor (successors) specified in parts two, three and four of this Paragraph is valid, while the list of taxpayers subject to monitoring of large taxpayers, or horizontal monitoring agreements is in force.

In this case, subject to refund in the simplified procedure is excess VAT:

in the amount not exceeding 70 percent of the amount of excess VAT for the reporting taxable period – with regard to taxpayers subject to monitoring of large taxpayers;

in the amount not exceeding 90 percent of the amount of excess VAT for the reporting taxable period – with regard to taxpayers that are in horizontal monitoring;

for taxpayers who are manufacturers of goods of their own production in the manufacturing industry:

corresponding to the conditions of paragraph 2 of Article 429 of this Code - in the amount of no more than 50 percent of the amount of excess value added tax that has developed for the reporting tax period;

corresponding to the conditions of paragraph 3 of Article 429 of this Code - in the amount of no more than 50 percent of the part of the amount of VAT credited for goods (work, services) used for the purposes of sales turnover, taxable at a zero rate, but not more than 50 percent of the amount of excess value added tax that has developed for the reporting tax period;

for raw materials exporters, when converting at least 50 percent of the foreign exchange gains received for the tax period, which comply with the conditions of paragraph 2 of Article 429 of this Code - in the amount of no more than 80 percent of the amount of excess value added tax established for the reporting tax period.

3. The refund of the amount of excess value added tax under a simplified procedure shall be made within fifteen working days after the expiration of the last date established by this Code for submission of the declaration on value added tax for the tax period to the tax authority, which indicates the requirement to return the amount of excess value added tax.

In case of an extension of the deadline for submitting tax reporting on value added tax in accordance with subparagraphs 2) and 3) of paragraph 3 of Article 212 of this Code, the refund of the amount of excess value added tax shall be made taking into account the extension period.

Footnote. Article 434 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 11.07.2022 No.135-VII (shall be enforced from 01.01.2022); dated 21.12.2022 No. 165-VII shall be enforced from 01.01.2023).