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

Article 409. The order for determining amounts of VAT allowed to be offset by maintaining separate accounting

1. When determining the amount of VAT allowed to be offset by maintaining separate accounting, a VAT payer shall maintain separate accounting for VAT on received goods, works, services that are used for the purposes of taxable and non-taxable turnovers.

2. Except for the cases provided for by Article 410 of this Code, when maintaining separate accounting:

1) the amount of VAT allowed to be offset is determined as the amount of VAT to be offset on received goods, works, services that are used for the purposes of taxable turnover with account of adjustment;

2) the amount of VAT not allowed to be offset is determined as the amount of VAT not subject to offset on received goods, works, services that are used for the purposes of non-taxable turnover;

3) the amount of VAT on received goods, works, services that are simultaneously used for the purposes of taxable and non-taxable turnovers, is distributed among the amount of VAT allowed to be offset and that not allowed to be offset, which are determined using the following formulas:

VATabo = VATtbo х Ttax/ Ttot;

VATna = VATtbo - VATabo, where:

VATabo - the amount of VAT allowed to be offset. This amount may have a negative value;

VATtbo - the amount of VAT subject to offset inclusive of the adjustment for goods, works, services that are simultaneously used for the purposes of taxable and non-taxable turnovers. This amount may have a negative value;

Ttax - the amount of taxable turnover for a taxable period. In this case, the persons, specified in paragraph 2 of Article 407 of this Code, determine О обл as turnovers, for which separate accounting is maintained in accordance with this article;

Ttot - the total amount of turnover determined as the sum of taxable and non-taxable turnovers;

VATna - the amount of VAT not allowed to be offset. This sum may have a negative value.

The amount of VAT not allowed to be offset is accounted for in the manner established by paragraph 9 of Article 243 of this Code.
Article 410. The procedure for determination of the amount of VAT allowed to be offset, by VAT payers constructing residential building (part of a residential building) or the activity for provision of services of casino, slot machine hall, a totalizator and bookmaker

Footnote. Heading of Article is in new wording – by the Law of the Republic of Kazakhstan dated 02.04.2019 No. 241-VI (shall be enforced from 01.01.2019).

1. In case of sale of an unfinished residential building, VAT allowed to be offset on goods, works, services used in the process of construction of this building is determined in accordance with this article and accounted for in the taxable period of sale of the construction-in-progress asset:

1) in case of sale of a construction-in-progress asset earlier intended for sale in the form of turnover exempted from VAT in accordance with Article 396 of this Code - as the amount of VAT subject to offset on the specified goods at a rate effective as of the date of their acquisition;

2) in case of sale of a construction-in-progress asset that is a part of a construction-in-progress asset earlier intended for sale in the form of turnovers both exempt from and subject to VAT - as the amount of VAT attributable to the realizable part of the construction-in-progress asset, which is calculated using the following formula:

VATabocp = VATas х Spcp / Scp, where:

VATabocp – VAT allowed to be offset with regard to a construction-in-progress asset earlier intended for sale in the form of turnovers both exempt from and subject to VAT;

VATas - the amount of VAT on goods, works, services used for construction, accounted for separately as of the date of sale in accordance with paragraph 3 of Article 402 of this Code;

Spcp - the area of a construction-in-progress asset according to design estimates, which is a part of a construction-in-progress asset earlier intended for sale in the form of turnovers both exempt from and subject to VAT;

Scp - the total area of a construction-in-progress asset earlier intended for sale in the form of turnovers both exempt from and subject to VAT.

2. A VAT payer constructing a residential building (part of a residential building) is entitled, in the taxable period of sale or lease of a part of a residential building consisting exclusively of non-residential units, but not prior to the date of commissioning a residential building, to determine the amount of VAT allowed to be offset on goods, works, services used for the construction of a non-residential unit that is a part of such a residential building (part of a residential building), using the following formula:

VATabo = (VATtbo – VATabocp) х Snr / Srb, where:

VATabo - the amount of VAT allowed to be offset on a non-residential unit that is a part of a residential building (part of a residential building);

VATtbo - the amount of VAT subject to offset on goods, works, services used for the construction of a residential building (part of a residential building) that is accounted for separately. The amount of tax is determined as of the date of sale or lease of a part of a residential building consisting exclusively of non-residential units, but not prior to the date of commissioning a residential building in accordance with the legislation of the Republic of Kazakhstan on architectural, town-planning and construction activity;

VATabocp – VAT allowed to be offset with regard to a part of a construction-in-progress asset earlier intended for sale in the form of turnovers both exempt from and subject to VAT. The amount of tax is determined in the case and in the manner provided for in paragraph 1 of this article;

Snr - the area of non-residential units in a residential building (part of a residential building);

Srb – the total area of a residential building (part of a residential building).

In this case, the amount of VAT not allowed to be offset is accounted for in the manner specified in paragraph 9 of Article 243 of this Code and is determined using the following formula:

VATna = VATtbo – VATabocp - VATabo, where:

VATna - the amount of VAT not allowed to be offset on a residential unit that is a part of a residential building (part of a residential building) including also a non-residential unit.

3. VAT allowed to be offsetin the activity for provision of services of a casino, slot machine hall, totalizator and bookmaker shall be determined at 85 percent of the amount of VAT from the taxable turnover determined in accordance with Paragraph 16 of Article 381 of this Code.

Value added tax that is not allowed to be offset shall not be taken into account for the purposes of paragraph 9 of Article 243 of this Code.

Footnote. Article 410 as amended by the Law of the Republic of Kazakhstan dated 02.04.2019 No. 241-VI (shall be enforced from 01.01.2019); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).