SIGNUM | Return of VAT

Published
March 6, 2009

Dear Sirs,

Hereby we would like to draw your attention to the terms for return of value added tax (VAT) under the Tax Code.

In accordance with Article 273 of the Tax Code, VAT payer is entitled to claim back excess VAT, incurred after 1 January 2009, within limitation period stipulated by Article 46 of the Tax Code (5 years after end of a tax period).

At the same time, according to Article 25 of the Law On introduction of the Tax Code, excess VAT on turnovers charged at zero rate, incurred before 1 January 2009, shall be returned to VAT payer. At that VAT payer should submit a request on return of excess VAT not later than expiration of 12 month period from a tax period in which taxable turnovers charged at zero rate took place.

In accordance with Article 269 of the Tax Code, tax period for VAT is a calendar quarter. However, in accordance with Article 246 of the Tax Code dated 12 June, 2001, tax period for VAT is a calendar month (if average amount of VAT for previous quarter exceeds 1 000 monthly indexes). Thus, if prior to 1 January 2009 tax period for VAT was a calendar month, then tax authorities are likely to calculate 12 month term for submission of the request for VAT return from the end of corresponding calendar month.

In this regard, we would like to recommend to submit the request for VAT return on turnovers charged at zero rate, incurred before 1 January 2009, with taking into account the abovementioned terms.

Should you have any questions or need additional information, we will be glad to respond. Please contact Sofiya Zhylkaidarova at ssz@signum.kz and Talgat Sariev at tbs@signum.kz.

Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek for a specific advice in relation to any questions. Please note that Kazakhstan and Turkmenistan are emerging economies and their legislation and legal systems are in constant development. Should you have any questions or would like to discuss subjects addressed in this Client Update please contact us.