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

Article 454. Features of identification of VAT payers in case of import of goods

1. If a taxpayer of the Republic of Kazakhstan purchases goods under an agreement (contract) with a taxpayer of another member state of the Eurasian Economic Union, VAT shall be paid by the taxpayer of the Republic of Kazakhstan (an owner of goods or a commission agent, designated agent, operator),where the goods were imported.

For the purposes of this Chapter, an owner of goods shall be understood to mean a person with the title to goods or the one acquiring the title to goods under an agreement (contract).

2. If a taxpayer of the Republic of Kazakhstan purchases goods under an agreement (contract) with a taxpayer of another member state of the Eurasian Economic Union, and the goods are imported from the territory of a third member state of the Eurasian Economic Union, VAT shall be paid by the owner of goods that is a taxpayer of the Republic of Kazakhstan, where the goods were imported.

3. If a taxpayer of one member state of the Eurasian Economic Union sells goods under a commission agreement, on the basis of instructions to a taxpayer of the Republic of Kazakhstan and the goods are imported from the territory of a third member state of the Eurasian Economic Union, VAT shall be paid by the commission agent, designated agent that are taxpayers of the Republic of Kazakhstan, where the goods were imported.

4. If a taxpayer of the Republic of Kazakhstan purchases goods, earlier imported into the territory of the Republic of Kazakhstan by a taxpayer of another member state of the Eurasian Economic Union, on which no VAT was paid, at a trade fair organized by another taxpayer of the Republic of Kazakhstan, VAT shall be paid by the taxpayer of the Republic of Kazakhstan that is anowner of goods or a commission agent, designated agent (operator), unless otherwise provided for in this paragraph.

If a taxpayer of the Republic of Kazakhstan purchases goods, earlier imported into the territory of the Republic of Kazakhstan from the territory of the member states of the Eurasian Economic Union, on which no VAT was paid, at a trade fair organized by a taxpayer of the Republic of Kazakhstan, VAT shall be paid by anowner of goods, provided that he/she/it has agreements (contracts) on (for) their purchase and sale with a non-resident.

In case of no agreements (contracts) on (for) the purchase and sale of goods, VAT on such goods shall be paid by the taxpayer of the Republic of Kazakhstan that organized the trade fair.

A taxpayer of the Republic of Kazakhstan organizing a trade fair shall notify the tax authority at the place of his/her/its location thereof in writing, ten business days prior to its commencement, and attach a list of trade fair participants from the member states of the Eurasian Economic Union.

The procedure for control over the payment of VAT on a fair trade is determined by the authorized body.

5. If goods are purchased under an agreement between a taxpayer of the Republic of Kazakhstan and a taxpayer of a state that is not a member of the Eurasian Economic Union, and at the same time goods are imported from the territory of another member state of the Eurasian Economic Union, VAT shall be paid by the owner of goods or the commission agent, designated agent (operator) that are taxpayers of the Republic of Kazakhstan, where the goods were imported.
Article 455 Features of the calculation of value added tax when importing goods into the territory of the Republic of Kazakhstan under commission agreements (order) from the territories of the member states of the Eurasian Economic Union

Footnote. The heading of Article 455 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021).

1. When goods are imported into the territory of the Republic of Kazakhstan by a commission agent (designated agent) under commission (agency) agreements, it is the obligation of the commission agent (designated agent) to calculate VAT on imported goods and transfer it to the state budget.

At the same time, the amounts of value added tax paid by the commission agent (attorney) for goods imported into the territory of the Republic of Kazakhstan shall be subject to offset by the buyer of such goods on the basis of an invoice issued by the commission agent (attorney) to the buyer, as well as a copy of the application for import of goods and payment of indirect taxes, containing the mark of the tax authority, provided for in paragraph 7 of Article 456 of this Code.

2. The sale of goods, performance of works or rendering of services by the commission agent on his/her/its own behalf and at the expense of the principal are not the commission agent’s turnover from sale.

3. The sale of goods, performance of works or rendering of services by the designated agent on his/her/its own behalf and at the expense of the principal are not the designated agent’s turnover from sale.

4. Invoices for goods imported into the territory of the Republic of Kazakhstan under commission (agency) agreements concluded between the principal that is a taxpayer of a member state of the Eurasian Economic Union and the commission agent (designated agent) that is a taxpayer of the Republic of Kazakhstan, selling goods in the territory of the Republic Kazakhstan, are issued by the commission agent (designated agent). In this case, an invoice shall indicate the “commission agent” (“designated agent”) status of a supplier.

An invoice, issued by the commission agent (designated agent) to a buyer, shall indicate the details specified in subparagraphs 1) - 7) of paragraph 5 of Article 412 of this Code, the value of goods exclusive of VAT, as well as the number and date of the application for importation of goods and payment of indirect taxes attached to the invoice.

An invoice shall indicate VAT amount paid by the commission agent (designated agent) for imported goods in a separate line.

Such an invoice shall be attached by a copy of the application received from the commission agent (attorney) for the import of goods and payment of indirect taxes, which is the basis for offsetting the value added tax paid when importing goods by the commission agent (attorney).

VAT on imported goods, paid by the commission agent (designated agent) when importing goods into the territory of the Republic of Kazakhstan, is not subject to offset by the commission agent (designated agent).

5. The effective date of taxable import when importing goods into the territory of the Republic of Kazakhstan under commission (agency) agreements is the date of imported goods’ recognition in accounting records by the commission agent (designated agent).

For the purposes of this paragraph, the date of recognition in accounting records is that of a source document drawn up by the principal to the commission agent (designated agent), which confirms the goods’ transfer.

6. in case of sale of goods, performance of works, rendering of services on conditions consistent with those of a commission (agency) agreement, the amount of taxable turnover of the commission agent (designated agent) is determined on the basis of remuneration under the commission (agency) agreement.

Footnote. Article 455 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021).