A minimum price for certain types of imported goods is fixed for the purposes of calculating VAT and excise duty – Tax



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Kazakhstan: A minimum price for certain types of imported goods is set for the purposes of calculating VAT and excise duties

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A minimum price for certain types of imported goods is set for the purposes of calculating VAT and excise duties.

Thus, on September 27, 2021 a draft order of the Minister of Trade and Integration of the Republic of Kazakhstan “on the approval of the implementing rules on the minimum price level for certain types of goods, imported from the
Member States of the u Eurasian economynionto the Republic of Kazakhstan, for the purpose of determining the cost of goods purchased ‘ (hereinafter – the “Rules”) Was posted on the website of the Ministry of Trade and Integration of Kazakhstan.

The rules were adopted on the basis of Article 444.2 of the Tax Code for the purpose of determining the taxable amount when calculating import VAT and excise duty.

It is expected that the Rules will enter into force on January 1, 2022.

The rules will apply to certain types of goods imported from Eurasian Economic Union member states to Kazakhstan. The list of goods subject to the minimum price must be approved by the Government of Kazakhstan. At present, the project of this list1(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 minimum prices of certain types of goods on its own official website on an annual basis no later than June 1 and December 1.

While the tax authorities will monitor and enforce these prices.

In the event that an importer violates the requirements of the Rules, the tax authorities will send this information to the economic investigation authorities the latter to take the respective measures in accordance with Kazakh legislation.

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

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

In the event that the price specified in the contract / shipping documents is higher than the established minimum price, the first will be applied instead of the second.

In addition, import VAT and excise duty are levied on the basis of the minimum prices established in the following cases:

  • in the event that the importer fails to submit import VAT and excise duty declarations when importing goods subject to established minimum prices;
  • in the event that the minimum prices established have been applied in violation of the requirements of the Regulation.

About GRATA International

GRATA International is the largest independent law firm in Kazakhstan and one of the leading law firms in Central Asia and the Caspian region. GRATA has been providing a wide range of legal services in these regions for almost 30 years.

Throughout its existence, the Firm has developed an experienced tax practice. With this in mind, in 2005, the tax service was created. Unlike many consulting firms, GRATA’s tax team was primarily made up of lawyers with experience working in the tax administration. This functionality allows us to provide our clients with advice that is not only correct but achievable in practice.

Services

  • Refund of withholding tax;
  • Reimbursement of VAT from the state budget;
  • Corporate taxation;
  • Tax support and structure in mergers and acquisitions transactions;
  • Tax investment preferences and tax planning;
  • Taxation of banking and financial transactions;
  • Taxation of users of the basement;
  • Taxation of non-residents;
  • Taxation of Individuals;
  • Tax due diligence (tax audit);
  • Representation and protection of interests in tax litigation.

Footnote

1 Draft resolution of the Government of the Republic of Kazakhstan “On the approval of the list of certain types of goods subject to the established minimum price”.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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