A pilot project called "Digital VAT" has been launched in Kazakhstan, reports the business information center Kapital.kz, citing the press service of the Committee of State Revenues.
"Starting from the fourth quarter of 2024, the Committee of State Revenues, in collaboration with the National Bank, will implement the pilot project 'Digital VAT' utilizing the digital tenge. The digital tenge is a new digital form of the national currency based on blockchain technology, which allows for programming money to be used strictly for its intended purpose," the Committee stated.
It was clarified that exporting companies can purchase digital tenge with marked VAT from the National Bank through second-tier banks for participation in the pilot.
"The marked portion of the digital tenge cannot be used for other purposes or cashed out—these funds are exclusively intended for payments to suppliers and the budget. All transaction information regarding digital tenge, as well as details about VAT movements related to suppliers and budget revenues, will be transmitted by the National Bank to the state revenue authorities," the agency explained.
This mechanism will enable the state revenue authorities to have sufficient information for VAT refunds in the shortest possible time without tax risks, the Committee noted.
According to the Committee of State Revenues, the main advantages of using digital tenge for businesses include:
- reducing VAT refund times to 15 working days instead of 55-75 days;
- the absence of tax audits, which lowers administrative and financial costs;
- fast and guaranteed turnover of funds, which enhances financial planning.
"Participants in the pilot project have already received refunds within five days for the fourth quarter of 2024 without conducting a tax audit or applying a risk management system. The project confirms its effectiveness, and the Committee of State Revenues intends to expand digital solutions, which will increase the transparency of tax revenues," the Committee summarized.
It is worth noting that in July 2024, a pilot project for the use of the digital tenge (DT) platform was launched in Kazakhstan using funds from the National Fund. As part of the second phase of implementing the national digital currency, programmable digital tenge is allocated for the construction of the Dostyk-Moyinaty railway section.