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

Article 392. Turnover from the sale of fine gold

1. Turnover from the sale of fine gold from own-produced raw materials by taxpayers that are entities producing precious metals and persons, owning fine gold as a result of its processing, to the National Bank of the Republic of Kazakhstan for the renewal of its assets in precious metals is liable to zero-rated VAT.

2. Documents confirming zero-rated turnover, specified in paragraph 1 of this article, are as follows:

1) an agreement on general conditions of the purchase and sale of fine gold entered into by a taxpayer and the National Bank of the Republic of Kazakhstan for the renewal of assets in precious metals;

2) copies of documents confirming the value of fine gold sold to the National Bank of the Republic of Kazakhstan;

3) copies of documents confirming the receipt of fine gold by the National Bank of the Republic of Kazakhstan, with the indication of the amount of fine gold.

For the purposes of this article, own-produced raw materials shall be understood to mean raw materials extracted by a taxpayer on his/her/its own or purchased by him/her/it for the purpose of processing.
Article 393. Taxation in individual cases

1. Turnover from the sale of own-produced goods to taxpayers operating in the territory of the Republic of Kazakhstan under a subsoil use contract, a production sharing agreement (contract), under which imported goods are exempt from VAT, is liable to zero-rated VAT.

If a subsoil use contract, a production sharing agreement (contract) provides for a list of imported goods exempt from VAT, turnovers from the sale of goods indicated in this list are zero-rated.

For the purposes of this article, a product (goods) manufactured by a taxpayer and having a certificate of origin is (are) recognized as own-produced goods.

The list of taxpayers specified in part one of this Paragraph shall be approved by the authorized agency for oil and gas in coordination with the authorized agency and the authorized body for tax policy.

2. Turnover from the sale of unstabilized condensate produced and sold by a subsoil user, operating under the subsoil use contract specified in paragraph 1 of Article 722 of this Code, from the territory of the Republic of Kazakhstan to the territory of other member states of Eurasian Economic Union is liable to zero-rated VAT.

The list of taxpayers specified in this paragraph shall be approved by the authorized body for oil and gas in coordination with the authorized body and the authorized body for tax policy.

3. Turnover from the sale by a taxpayer, operating under an intergovernmental agreement on cooperation in the gas industry, in the territory of another member state of the Eurasian Economic Union of products of processing from customer-supplied raw materials, earlier exported by this taxpayer from the territory of the Republic of Kazakhstan and processed in the territory of such another member state of the Eurasian Economic Union, is liable to zero-rated VAT.

The list of taxpayers specified in this paragraph shall be approved by the authorized body for oil and gas in coordination with the authorized body and the authorized body for tax policy.

4. Documents confirming the sale of goods to taxpayers, specified in paragraph 1 of this article, are as follows:

1) an agreement for the delivery of goods to taxpayers operating in the territory of the Republic of Kazakhstan under a subsoil use contract, a production sharing agreement (contract), under which imported goods are exempted from VAT, specifying that the intended use of the goods supplied is to implement the work program of the subsoil use contract, the production sharing agreement (contract);

2) copies of shipping documents confirming the shipment of goods to taxpayers;

3) copies of documents confirming the receipt of goods by taxpayers.

5. Documents confirming the sale of unstabilized condensate, specified in paragraph 2 of this article, are as follows:

1) an agreement (contract) on (for) the delivery of unstabilized condensate (to be) exported from the territory of the Republic of Kazakhstan to the territory of other member states of the Eurasian Economic Union;

2) a meter reading certificate for the amount of unstabilized condensate sold through the pipeline system;

3) a certificate of acceptance of unstabilized condensate exported from the territory of the Republic of Kazakhstan to the territory of other member states of the Eurasian Economic Union through the pipeline system.

The meter reading procedure for measuring the amount of unstabilized condensate sold through the pipeline system is determined by the authorized body for oil and gas.

6. Documents confirming the sale of goods, specified in paragraph 3 of this article, are as follows:

1) agreements (contracts) on (for) processing of customer-supplied raw materials;

2) agreements (contracts) underlying the sale of products of processing;

3) documents confirming the performance of works on the processing of customer-supplied raw materials;

4) copies of shipping documents confirming the exportation of customer-supplied raw materials from the territory of the Republic of Kazakhstan into the territory of another member state of the Eurasian Economic Union.

In case of exportation of customer-supplied raw materials through the trunk pipeline system, a certificate of acceptance of such customer-supplied raw materials is presented instead of copies of shipping documents;

5) documents confirming the shipment of products of processing to their buyer that is a taxpayer of a member state of the Eurasian Economic Union, in the territory of which the customer-supplied raw materials were processed;

6) documents confirming the receipt of foreign exchange earnings from realized products of processing to the taxpayer’s bank accounts with second-tier banks in the territory of the Republic of Kazakhstan opened in the manner prescribed by the legislation of the Republic of Kazakhstan;

7) an opinion of a relevant authorized state body on the conditions of goods’ processing in the territory of a member state of the Eurasian Economic Union provided for by paragraph 8 of Article 449 of this Code.

When determining excess amount of VAT subject to refund, it is necessary to take into account the findings of an audit of a buyer of products of processing conducted by a tax authority of a member state of the Eurasian Economic Union at the request of a tax authority of the Republic of Kazakhstan.

Footnote. Article 393 as amended by the Law of the Republic of Kazakhstan dated 03.04.2019 No. 243-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 45. NON-TAXABLE TURNOVER AND NON-TAXABLE IMPORT