Kazakhstan VAT on digital services & e-commerce update

The changes build on Kazakhstan’s VAT regime for non-resident digital businesses, introduced in January 2022, and the broader reforms under the new Tax Code.

Kazakhstan’s standard VAT rate increased from 12% to 16% from 1 January 2026.

September 2026 e-commerce VAT proposals

Draft amendments published in 2026 would give the Kazakhstan tax authorities greater visibility over payments to foreign online sellers and strengthen their enforcement powers.

Payment organisations would be required to report quarterly information on payments and transfers made to foreign companies operating through online marketplaces.

This would include unregistered foreign companies where they receive more than 100 payments or transfers in a quarter and their total value exceeds 1,000 Monthly Calculation Indices (MCI), currently around KZT4.3 million.

The proposals would also allow the tax authorities to order the suspension of sales through an online platform where the platform fails to comply with a tax violation notice or discrepancies identified through a desk tax audit.

Separately, existing reporting by internet platforms on goods, services and payments to Kazakhstan-resident individuals would move from monthly to quarterly reporting.

Avoiding double VAT on imported goods

The draft also clarifies the interaction between e-commerce VAT and import VAT.

A foreign company would not be required to calculate and pay VAT on goods where their value has already been included in the taxable import value and Kazakhstan import VAT has been paid and is not refundable.

This is intended to prevent the same sale being subject to both the foreign e-commerce VAT regime and import VAT.

Kazakhstan VAT on electronic services

Kazakhstan has required foreign providers and marketplaces supplying electronic services to consumers to account for VAT since 1 January 2022.

There is no VAT registration threshold and foreign suppliers use a simplified registration procedure.

Taxable electronic services include:

• apps and software
• e-books
• streaming and downloadable media
• online storage and data processing
• domain name services
• advertising and marketplace listing services
• intermediary services provided by online marketplaces

Determining whether Kazakhstan VAT is due

Foreign suppliers must determine whether their customer is located in Kazakhstan. Evidence may include the customer’s billing address, payment details, IP address or international telephone country code.

Non-resident suppliers are generally not required to issue Kazakhstan VAT invoices under the simplified regime.

The latest proposals demonstrate Kazakhstan’s move beyond its original digital services VAT regime towards a broader e-commerce compliance model combining VAT, platform data and payment reporting.

Asia Pacific VAT on digital services