World Monitor Magazine, Business and Investments WM_march 2019_web | Page 17

DESTINATION KAZAKHSTAN
entitled to receive a preliminary explana-
tion from the authorized body regarding
tax liability arising in relation to planned
transactions (operations) with a guaran-
tee of non-application of penalties when
the authorized body changes. payers of VAT control accounts. At the
same time, such a return will be carried
out in stages – by approval (in agree-
ment with the authorized bodies) of the
regulatory act on the list of goods until
the end of 2018.
In terms of VAT At the same time, on November 6, 2018,
we (in the Mazhilis) received for consid-
eration a draft Law of the Republic of
Kazakhstan: “On introducing amend-
ments and addenda to some legislative
acts of the Republic of Kazakhstan on
the development of the business envi-
ronment and trading activities”.
From January 1, 2019, electronic in-
voices will be required to issue the
following:
• VAT payers.
• taxpayers who sell imported goods.
• freight forwarders and commissioners
who are not VAT payers, in cases pro-
vided for in Articles 415 and 416 of the
Tax Code.
ensures the accelerated return of VAT
to final consumers of goods (works and
services).
In terms of VAT refunds The general model of VAT accounting,
using the VAT control accounts, pro-
from the budget
Since January 2019, a simplified proce-
dure provides VAT refunds for taxpayers
registered to receive electronic invoices
through the information system and
who apply for a control VAT account on
a voluntary basis (a separate bank ac-
count used to separately account for the
movement of money in VAT amounts).
A separate transactions mode will be
applied to such bank accounts by limit-
ing the type of transactions performed,
i.e. crediting VAT amounts to the Coun-
terparty VAT Control Account for mutual
settlements between buyers and suppli-
ers for the supply of goods, as well as
paying VAT.
By implementing Blockchain technol-
ogy, separate accounting monitors the
movement of money transactions for
goods and VAT amounts.
The proposed solution’s main principle
is to monitor the financial flows of VAT
and the transparency of taxpayers ful-
filling tax obligations in real time, which
vides that STBs, government revenue
agencies, treasury bodies, etc. who in-
teract making non-cash payments for
transactions between taxpayers will
be transferred to the Blockchain sys-
tem fully. This system will allow you to
fully see the current situation on tax li-
abilities and subsequently implement
a guaranteed return of VAT from the
budget to the final consumer of goods,
works and services.
For exporters applying VAT control ac-
counts, the timing of VAT returns on the
results of inspections will be reduced
from 55 to 15 working days, while VAT
will be refunded without applying a
risk management system (hereinafter,
RMS). The Order of the Ministry of Fi-
nance of the RK includes corresponding
changes in applying the RMS to confirm
the reliability of excess VAT amounts
and risk criteria, which "will be made
before the end of this year”.
In addition, the Tax Code on January 1,
2019 provides the first time to return
VAT on domestic sales when using VAT
This draft law was developed on the in-
structions of the Head of State, given
at the opening of the fourth session of
the Parliament of the sixth convocation,
on introducing a new package of legis-
lative changes by the Government for
the further development of the business
environment.
The bill can be found on the website of
the Ministry of National Economy.
Now, the Tax Code within the frame-
work of this draft law includes some
planned changes and additions.
1. When synchronizing the norms
of the new Tax Code with the draft
code ‘On Subsoil Use and Subsoil
Use’, the list of common mineral
resources was revised, however,
tax rates remained the same, and
the tax burden on subsoil users in-
creased dramatically.
In this regard, within the framework of
the draft law, the mineral extraction tax
rates on common minerals in terms of
sedimentary rocks were reduced from
0.04 MCI to 0.015 MCI per unit volume
of the extracted mineral. The proposed
amendments will keep the tax burden at
the 2017 level.
supported by EUROBAK
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