Alibaba International Digital Commerce Group will undergo conditional registration as a VAT payer in Kazakhstan, reports a correspondent from the business information center Kapital.kz, citing the press service of the Committee of State Revenues.
It is explained that representatives of the Committee of State Revenues and Alibaba held a meeting to discuss issues related to the development of international taxation in the digital economy, as well as recent changes in legislation and tax administration in the field of e-commerce in Kazakhstan.
“The Committee of State Revenues is actively working to strengthen partnerships and promote e-commerce between Kazakhstan and international companies, facilitating increased transparency and fair taxation in Kazakhstan's tax administration,” the committee explained.
It is worth noting that by the end of 2023, 60 foreign companies have undergone conditional registration in Kazakhstan, with the total amount of taxes paid by them reaching 34.8 billion tenge.
Since January 1, 2022, the provisions of the Tax Code regarding the obligations of foreign internet companies to pay VAT on goods sold and services provided to individuals in Kazakhstan in electronic form have come into effect. The VAT rate is set at 12% of the total amount of goods and services sold. Companies are identified as the recipient of the payment using a special code known as Merchant ID or MID. Requirements for registration for foreign companies that are payers of the "Google tax" have been simplified. For instance, to register, companies need to send a letter to the Committee of State Revenues, thereby undergoing the conditional registration process. Companies are not required to submit tax declarations, and there are no penalties or other complex mechanisms of tax administration.