1. When computing value-added tax to be offset by the separation method, the value-added tax payer shall maintain separate accounting for costs and amounts of value-added tax relating to received goods, work, services which are used for the purposes of taxable and exempt turnovers.
2. Banks and organizations engaged in specific types of bank operations, microfinance organizations using the proportional offset method, shall have the right to apply a separate method for accounting of the amounts of VAT on the turnovers connected with receipt and sale of the collateralized property (goods)..
2-1. An organization specializing in improvement of quality of loan portfolios of second-tier banks, in which 100% voting shares are held by the national Bank of the Republic of Kazakhstan, which applies the proportional method for taking as an offset shall have the right to apply the separate method for accounting of the amounts of value added tax on the turnovers connected with acquisition, holding and/or sale:
of the pledged property (goods) received from the bank under the rights of claim acquired from such bank with respect to doubtful and bad assets;
of the property (goods) passed to the bank’s ownership as a result of application of recovery to the pledged property and received by the organization specializing in improvement of quality of loan portfolios of second-tier banks, in which 100% voting shares are held by the National Bank of the Republic of Kazakhstan, under the rights of claim acquired from such bank with respect to doubtful and bad assets.
2-2. The bank subsidiary organization acquiring doubtful and bad assets of the parent bank and applying the proportional method for taking as an offset shall have the right to apply the separate method for accounting of the amounts of the valued added tax on the turnovers connected with acquisition, holding and/or sale:
of the pledged property (goods) received from the parent bank under the acquired rights of claim with respect to doubtful and bad assets;
of the property (goods) passed to the parent bank’s ownership as a result of application of recovery to the pledged property and received by the bank subsidiary from the parent bank under the rights of claim with respect to doubtful and bad assets.
2-3. Individual entrepreneurs and legal entities licensed for tourist operator activities (tour operator activities) in accordance with the legislation of the republic of Kazakhstan concerning tourist activities, shall maintain the accounting of goods, work, and services aimed at rendering tour operator’s services separately from any other activities. Goods, work, and services aimed at rendering tour operator’s services shall be accounted separately in terms of the turnover exempt from value-added tax in accordance with subparagraph 25) of Article 248 of this Code, and the taxable turnover.
3. When assets are transferred under finance leases, the lessor who uses the proportionate method for offset, shall have the right to use the separation method for accounting for amounts of value-added tax in relation to turnovers associated with the transfer of assets under finance leases.
4. Expenditures of the lessor, in relation to purchase of assets to be transferred under finance leases, shall be recognised as expenditures incurred for the purposes of the taxable turnover.
5. Islamic banks using proportionate method for recognising offsets, shall have the right to apply the separation method for accounting for amounts of value-added tax relating to turnovers associated with the purchase and transfer of assets within the framework of financing of trading activity as trade agent with provision of commercial credit in accordance with banking legislation of the Republic of Kazakhstan.
6. Payers of value-added tax applying the separate method for offset, shall have the right to apply the share of taxable turnover in the total turnover for assessment of value-added tax amount to be offset with respect to goods, works, and services, used for purposes of both taxable and exempt turnovers.
CHapTER 35. inVOiCEs article 263. invoices
1. Invoices shall be recognised as obligatory documents for all value-added tax payers, unless otherwise specified by this Article.
1-1. The form of invoices other than invoices issued in electronic form, shall be determined by taxpayers independently subject to the provisions of this article.
1-2. An invoice shall be issued in hard copy or in electronic form.
electronic invoices shall be received, processed, transferred, and stored by means of the information electronic invoicing system.
The authorized body shall establish the procedure for the document flow of invoices issued in electronic form to disclose the information as follows:
Invoice form;
procedure for issue, sending, acceptance, registration, processing, transfer, and receipt of invoices;
Invoice validation procedure;
special considerations in acknowledgement of corrected and/or additional invoices;
procedure for storage of invoices;
procedure for interaction between the central authorized body responsible for budget implementation and the tax service bodies.
The central authorized body for budget implementation in accordance with the laws of the Republic of Kazakhstan shall be responsible for:
promptness of acceptance, registration, processing and transfer of invoices issued in electronic form, and storage thereof;
Credibility of the transferred data reflected in the invoices issued in electronic form;
Non-disclosure of data specified in invoices to third parties, except when it is provided for by the legislation of the Republic of Kazakhstan.
2. Unless otherwise established by this Article, payers of value-added tax shall be obliged, when carrying out turnovers of selling goods, work, services, to issue invoices for the recipients of said goods, work, services.
3. Payers of value-added tax shall specify the following in invoices:
1) in the case of turnovers subject to value-added tax, – total value-added tax;
2) mark “VAT excluded” – in case of non-taxable turnovers, including those exempt from value added tax.
4. If a taxpayer is not a value-added tax payer in accordance with subparagraph 1) of paragraph 1 of Article 228 of this Code, invoices or other documents which are issued in accordance with paragraph 2 of Article 256 of this Code, shall be issued with the «Without VAT» note.
5. The following must be specified in an invoice which is a basis for offsetting value-added tax in accordance with Article 256 of this Code:
1) invoice number indicated in arabic numerals;
1-1) where an invoice is issued in electronic form – the effective date of turnover;
2) date of issue of the invoice. If an invoice is issued in electronic format the date of registration of invoice in the information electronic invoicing system shall be the date of issue of the invoice;
2-1) addresses of the supplier and recipient of goods, work, and services, specifying the place of location (residence) of the supplier and recipient of goods, work, and services;
3) with respect to individuals being recipients of goods, work, and services – surname, name, patronymic (if any);
with respect to legal entities being suppliers or recipients of goods, works, services – the name specified in the certificate of state registration (re-registration) of the legal entity. In that case, the organizational legal form may be specified using abbreviation in accordance with the usual practices, including the usual business practice;
3-1) in the cases stipulated by paragraph 18 of this Article, status of a supplier – consigner or a commission buyer;
3-2) in cases stipulated by subparagraphs 1) – 4) of part two of paragraph 12 of this Article, an invoice issued in electronic form shall specify:
a currency letter code as per the Classifier of Currencies approved by the Commission of the Customs Union;
an exchange rate used for the calculation of the taxable (exempt) turnover as at the effective date of turnover;
4) identification number of the supplier and recipient of goods, work, services;
5) series and number of the certificate of the supplier being a value added tax payer of registration for value added tax purposes;
6) description of the goods, work, services which are sold;
7) amount of taxable (exempt) turnover;
8) value-added tax rate;
9) total value-added tax;
10) cost of goods, works, or services subject to value added tax.
Unless otherwise specified in this paragraph, if the supplier or recipient of goods, works, or services is a legal entity, for the purpose of subparagraphs 2-1), 3), 3-1), 4), and 5) of this paragraph, the invoice must contain the bank details of the legal entity.
In the event that a structural subdivision of a legal entity acts on behalf of the legal entity as a supplier of goods, works, or services and by the decision of the legal entity the invoices should be issued by such structural unit, and in the event that a structural units on behalf of the legal entity acts as a recipient of goods, works, or services, for the purpose of compliance with:
The requirements set forth in subparagraphs 2-1), 3), 3-1), and 4) of this paragraph, an invoice may contain details of the structural unit;
The requirements set forth in subparagraph 5) of this paragraph, the invoice shall bear series and number of the certificate of registration for value added tax of the legal entity being a value added tax payer the structural subdivision which is a supplier of goods, works or services.
6. Amounts of excise duty shall be additionally specified in an invoice when selling excisable goods.
In the case of selling goods, work, services on the conditions consistent with the provisions of an agency agreement, invoices shall be issued by specifying the status of the supplier:
«committent» – when in invoice is issued by the committent to the commissioner;
«commissioner» – when an invoice is issued by the commissioner to the buyer of the goods, work, services.
If requirements established by Article 78 of this Code are not implemented, a lessor shall issue an invoice or an additional invoice with marking non-observance of Article 78 of this Code.
7. unless otherwise provided for by this article, an invoice shall be issued not earlier the date of turnover and not later than within five calendar days after the date of the sales turnover:
seven calendar days after the effective date of sales turnover – in case of issue in hard copy;
fifteen calendar days after the effective date of sales turnover – in case of issue in electronic form.
Value added taxpayer shall be entitled to issue invoices:
in case of sale of electric power, water, gas, communications services, public utility services, railway carriages, transport and forwarding services, services of wagon (container) operators, services connected with carriage of freights through the main trunk pipeline system, services relating to extension of credits (loans, microcredits), and bank operations subject to VAT on the cost of banking operations subject to VAT – on the basis of the results of a calendar month on or before the 20th day of the month following the month at the end of which the invoice is to be issued;
if property has to be transferred to financial leasing with respect to the accrued interest amount – at the end of the calendar quarter on or before the 20th day of the month following the quarter for which the invoice is to be issued;
in the event that goods, works, and services are sold under agreements concluded for one year or for a longer period, to persons specified in paragraph 1 of Article 276 of this Code, – at the end of the calendar month on or before the 20th day of the month following the month for which the invoice is to be issued.
In the event that goods shall be exported under the export customs procedure the invoice shall be issued on or before the date of the sales turnover.
In the event provided for by paragraph 8 of article 237 of this Code, the invoice shall be issued within five calendar days after the date specified in the signed document specified in the second and third subparagraphs of the second part of paragraph 1-1 of Article 237 of this Code.
8. Unless otherwise specified by this paragraph, an invoice issued in hard copy shall be certified:
for legal entities – by signatures of the chief executive officer and chief accountant, as well as by the seal specifying the name and legal form of the legal entity, where such entity is obliged to have a seal pursuant to the legislation of the republic of Kazakhstan;
for individual entrepreneurs – by the seal (if available) specifying the surname, name, patronymic (if any) and (or) trade name of the individual entrepreneur, as well as by the signature of the individual entrepreneur.
An invoice may be certified by the signature of an employee duly authorized by the taxpayer’s order. In such case, a copy of the order shall be available for visual examination by recipients of goods, work, and services.
the recipient of goods, work, and services shall have the right to request from the supplier of such goods, work, and services a copy of the order on the appointment of a person authorized to sign invoices certified by the duly authorized person, and the supplier shall fulfill such request on the day of submission of the same by the recipient of goods, work, and services.
Based on the taxpayer's decision, a structural unit of a legal entity being a supplier of goods, work, and services shall have the right to certify invoices issued by the same by the seal of such structural unit of a legal entity specifying the name and legal form of the legal entity, where such entity is obliged to have a seal pursuant to the legislation of the Republic of Kazakhstan;.
An invoice issued by an authorized representative of the members of a simple partnership (consortium) in the cases specified in paragraph 5 of Article 308 of the Code shall be certified by the seal of the authorized representative specifying the name and legal form of such authorized representative, as well as by signatures of the chief executive officer and chief accountant of such authorized representative.
where in accordance with the requirements of the legislation of the republic of Kazakhstan concerning accounting and financial reporting, and with the accounting policy, the books are kept by the chief executive officer or individual entrepreneur themselves, “not applicable” should be stated instead of the chief accountant's signature.
An invoice issued in electronic form shall be certified by an electronic digital signature.
9. Amounts of taxable turnovers shall be specified in invoices separately for each item of the goods, work, services, unless otherwise specified by this paragraph.
In the event that invoices shall be issued in hard copy, the total turnover amount may be specified, if such invoice is accompanied by a document containing the data specified in subparagraphs 6) -10) of paragraph 5 of this Article. In that case the invoice should contain a reference to the number and date of the document, as well as its name.
10. The amount of the taxable turnover shall be specified in the invoice issued by the lessor for the transferred leasing subject on the basis of the total amount of all leasing payments in accordance with the financial lease agreement not including the amounts of interest on the financial lease and value added tax.
11. in the case of sale of periodical print publications and other products of a media outlet, including those posted on an Internet resource, invoices shall be issued:
1) seven calendar days after the effective date of sales turnover – in case of issue in hard copy;
2) fifteen calendar days after the effective date of sales turnover – in case of issue in electronic form.
12. In an invoice issued in hard copy, values and amounts shall be specified in the national currency of the Republic of Kazakhstan. in case of foreign trade activities, as well as in cases provided for by the legislative acts of the republic of Kazakhstan, the cost of goods, work, and services and the value-added tax amount may be additionally specified in a foreign currency.
In an invoice issued in electronic form, values and amounts shall be specified in the national currency of the Republic of Kazakhstan, save for the following cases where an indication in a foreign currency is permitted:
1) with respect to deals (transactions) concluded (made) as part of a product sharing agreement (contract);
2) with respect to deals (transactions) on export sales of goods subject to value-added tax at the zero rate in accordance with Articles 242, 276-11 and 276-13 of this Code;
3) with respect to turnovers from sales of international carriage services subject to value-added tax at the zero rate in accordance with Articles 244 of this Code;
4) with respect to sales turnovers subject to value-added tax at the zero rate in accordance with paragraph 1-2 of Articles 245 of this Code.
13. The invoice in hard copy shall be issued in two copies, one of which shall be transferred to the recipient of the goods, works or services.
14. any amendments, including those aimed at correcting any errors, shall be introduced to a previously issued invoice by means of cancellation of the previously issued invoice and the issue of an amended invoice.
for this purpose, the indication in the amended invoice of any supplier of goods, work, and services other than the same specified in the previously issued invoice shall be prohibited.
The provisions of this paragraph shall not apply in the cases specified in Article 265 of this Code.
14-1. An amended invoice shall:
1) comply with the requirements set forth in this Article with respect to the issue of invoices;
2) contain the following information:
note specifying that the invoice is amended;
sequence number and date of issue of the amended invoice;
sequence number and date of issue of the invoice being cancelled;
14-2. An amended invoice shall be issued no sooner than the date of error detection, and no later than:
1) seven calendar days after the date of error detection – in case of issue in hard copy;
2) fifteen calendar days after the date of error detection – in case of issue in electronic form.
14-3. with respect to an amended invoice issued in hard copy, either of the following acknowledgements of receipt of such invoice by the recipient of goods, work, and services shall be required:
certification by the recipient of goods, work, and services of such invoice by signatures and seal in accordance with paragraph 8 of this Article;
orsending by the supplier of goods, work, and services of such invoice to the address of the recipient of goods, work, and services by registered mail, and availability of the notice of its receipt;
oravailability of the letter from the recipient of goods, work, and services acknowledging the receipt of such invoice and bearing the signature and seal:
for legal entities – specifying the name and legal form of the legal entity, where such entity is obliged to have a seal pursuant to the legislation of the Republic of Kazakhstan;
for individual entrepreneurs – if the seal is available, specifying the surname, name, patronymic (if any) and (or) trade name of the individual entrepreneur.
15. Unless otherwise provided for by this Article, no invoice is required in case of:
15. Unless otherwise provided for by this Article, no invoice is required in case of: