Kazakhstan's indirect tax regime is anchored in the Tax Code, which levies value added tax at a standard rate of 12% on the supply of goods and services within Kazakhstan and on imports. Foreign companies operating in or supplying into Kazakhstan should note at the outset that the EAEU Treaty and the associated protocol on indirect taxes create a parallel — and in some respects superseding — layer of rules that govern cross-border transactions between Kazakhstan, Russia, Belarus, Armenia and Kyrgyzstan.
Under the Tax Code, VAT applies to taxable supplies made by VAT-registered persons and to the import of goods across Kazakhstan's customs border. The registration threshold is set in terms of the minimum calculation index; once a business's turnover of taxable supplies exceeds that threshold over a rolling twelve-month period, mandatory VAT registration follows. Foreign legal entities and individuals that do not have a permanent establishment in Kazakhstan but supply electronic, telecommunications or certain other services to Kazakhstani recipients are subject to a reverse-charge mechanism: the Kazakhstani recipient accounts for VAT as a tax agent, or — where the recipient is a non-business individual — the foreign supplier may be required to register and account for VAT directly.
In practice, the interaction between the Tax Code and the EAEU indirect-tax protocol is the most commercially significant point for foreign investors and trading companies. Under the EAEU framework, exports of goods between member states are zero-rated in the exporting state; the importer accounts for VAT in its own jurisdiction at the domestic rate and pays it directly to the state budget (not through customs), filing a separate indirect-tax declaration. This means that a Russian entity selling goods to a Kazakhstani buyer does not charge Russian VAT on the invoice — the Kazakhstani buyer accounts for Kazakhstan VAT at 12% and, in principle, recovers it as input tax if it is VAT-registered. Documentation requirements under the EAEU protocol — confirmation of import, application for import of goods, payment documents — are strict and non-compliance by either party can trigger disputes with the tax authority.
Beyond VAT, Kazakhstan levies excise duties on a defined list of goods including alcohol, tobacco, petroleum products, motor vehicles and certain luxury items. Excise applies at the point of production or import and is non-recoverable — it forms part of the taxable base for VAT purposes on imports. The rates are set in the Tax Code and are periodically revised; foreign companies importing excisable goods should verify current rates before finalising import costings.
For a foreign company considering market entry into Kazakhstan — whether through a subsidiary, branch, representative office or a distribution arrangement — the indirect-tax position is a material structuring consideration. A subsidiary registered as a VAT taxpayer recovers input VAT; a representative office, which is not permitted to conduct commercial activity, cannot register for VAT and therefore cannot recover it. A branch of a foreign legal entity can register for VAT if its activities constitute taxable supplies, but the administrative obligations are equivalent to those of a local entity.
Vetrov & Partners advises on the Kazakhstan regulatory and tax dimension of cross-border matters involving Russian and Central Asian jurisdictions. For Kazakhstan tax and indirect-tax questions — make an enquiry: info@vetrovpartners.com | WhatsApp/Telegram: +7 (983) 510-38-76
For further context on doing business in Kazakhstan, see the firm's Kazakhstan jurisdiction overview at /jurisdictions/kazakhstan/ and the dedicated Kazakhstan tax practice page at /jurisdictions/kazakhstan/tax/. Companies comparing indirect-tax regimes across the region may also find the Uzbekistan tax overview at /jurisdictions/uzbekistan/tax/ and the Kyrgyzstan tax overview at /jurisdictions/kyrgyzstan/tax/ useful reference points.
— Aigerim Serikbayeva Contributing Regional Analyst — Kazakhstan · EAEU Trade, Customs and Market Entry vetrovpartners.com/contributions/
Aigerim Serikbayeva advises on Kazakhstani and EAEU trade, customs and market-entry regulatory matters. She contributes to Vetrov & Partners' Central Asia practice as a regional analyst, supporting inbound mandates for foreign companies assessing the Kazakhstani legal and tax landscape.
This publication is provided for informational purposes only and does not constitute legal advice under Russian or any other applicable law. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Vetrov & Partners is a Russian-qualified law firm. For matters governed by foreign law or requiring local admission in another jurisdiction, we collaborate with trusted counsel in the relevant jurisdiction. For advice regarding your particular situation, please contact info@vetrovpartners.com.