Kazakhstan’s New Tax Code: VAT Registration Rules from 2026

From January 1, 2026, Kazakhstan’s new Tax Code will come into force. It introduces several changes to the rules for value-added tax (VAT) registration, while keeping some of the existing provisions in place.

Types of registration

The Code provides for three types of VAT registration:

• Voluntary – available upon taxpayer’s application before reaching the turnover threshold;

• Mandatory – required once the turnover exceeds 10,000 MCI (monthly calculation index) as of January 1 of the relevant year;

• Conditional – for foreign companies selling goods or services through online platforms in Kazakhstan.

Who is exempt

Certain entities are not subject to VAT registration, including state institutions, structural subdivisions of resident companies, individuals engaged in private practice, taxpayers applying special regimes, and private individuals.

Mandatory registration

If a company’s turnover exceeds the threshold of 10,000 MCI in a calendar year, it must apply for VAT registration within five business days. If a single transaction exceeds the threshold, the application must be filed in advance of that transaction.

A noteworthy detail: when registering, updating registration details, or changing the company’s director, biometric identification of the director is carried out in the electronic invoicing system. This measure aims to ensure transparency and prevent fictitious registrations.

Failure to register in due time means that excess turnovers will still be considered taxable and may result in penalties.

Foreign companies’ conditional registration

For foreign businesses providing goods or services via online platforms in Kazakhstan, a conditional registration mechanism applies. They are added to a special register and considered VAT payers from the moment of the first payment by a Kazakhstani customer.

Deregistration

VAT deregistration applies in cases of transition to a special tax regime, company reorganization, liquidation, or termination of business.

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Overall, the new Tax Code refines and consolidates VAT registration rules. For companies, this means keeping a close eye on turnover and ensuring timely compliance to avoid unnecessary risks or liabilities.

The information provided in this Overview is of a general nature and does not constitute legal advice or a recommendation. Please note that Kazakhstan is a developing economy, and its legislation and law enforcement practice are continuously evolving. Should you have any questions regarding the information set out in this Overview, please feel free to contact us.