A minimal price for certain types of imported goods
is set for the purposes of VAT and excise tax calculation

A minimal price for certain types of imported goods is set for the purposes of VAT and excise tax calculation

A minimal price for certain types of imported goods is set for the purposes of VAT and excise tax calculation.

Thus, on 27 September 2021 a draft of the Order of the Minister of trade and integration of the Republic of Kazakhstan "On approval of the application rules on minimal price level for certain types of goods, imported from the member-states of the Eurasian economic unionto the Republic of Kazakhstan, for the purposes of cost determination in respect of the purchased goods" (hereinafter – the “Rules”) was published on the website of the Ministry of trade and integration of Kazakhstan.

The Rules were adopted on the basis of the Article 444.2 of the Tax Code for the purposes of taxable amount determination upon calculation of import VAT and excise tax.

It is anticipated that the Rules will come into effect on 1 January 2022.

The Rules will be applicable to certain types of goods imported from the member-states of the Eurasian Economic Union to Kazakhstan. The list of goods subject to the minimal price is to be approved by the Government of Kazakhstan. At present, the draft of such list[1](hereinafter – the “List”) includes various types of ethyl alcohol, cognac, armagnac, vodka and yeast.

The Ministry of trade and integration of Kazakhstan will publish the minimal prices for certain types of goods on its own official web-site on an annual basis not later than 1 June and 1 December.

While the tax authorities will monitor and enforce such prices.

In case an importer violates the Rules requirements, the tax authorities will send such information to the economic investigation authorities for the latter to take respective actions in accordance with the Kazakh legislation.

It should be noted that the amount of import VAT and excise tax will be calculated on the basis of the established minimal prices in the following cases:

  • if the price of goods from the List specified in the contract/shipping documents is less than the established minimal price;
  • if it is revealed that the goods from the List were imported without shipping documents.

In case the price specified in the contract/shipping documents is higher than the established minimal price, the former will be applied instead of the latter.

Moreover, import VAT and excise tax shall be levied on the basis of the established minimal prices in the following cases:

  • in case the importer fails to submit import VAT and excise tax returns upon import of goods which are subject to the established minimal prices;
  • in case the established minimal prices were applied in violation of the Rules requirements.

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Throughout its existence the Firm has developed an experienced tax practice. In view of this, in 2005 the tax department was formed.  Unlike many consulting companies, GRATA’s tax team comprised mainly of lawyers who have experience of working in the tax authorities. This feature enables us to provide our clients not only correct but practically feasible advice.

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For additional information, please visit www.gratanet.com or contact tax@gatanet.com

This alert for informational purposes only and shall not be treated as a legal advice. GRATA International is not responsible for any consequences arising from the use of the aforementioned information without its consent.

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[1] Draft of the Resolution of the Government of the Republic of Kazakhstan "On approval of the list of certain types of goods subject to the established minimal price".

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