SHOULD ALL TAXPAYERS ISSUE E-VAT INVOICES?
In accordance with updates of the Tax Code of the Republic of Kazakhstan coming into effect on 1 January, 2019, all VAT payers selling goods and providing labor and services are obliged to issue electronic VAT invoices via the E-invoicing information system (IS ESF).
The departments of taxation and small business of the Atameken NCE gave details about who and when should issue electronic VAT invoices.
The following three categories of taxpayers, regardless of their VAT registration, are obliged to issue electronic VAT invoices:
- taxpayers when selling goods included in the List of Exemptions;
- commission agents and freight forwarders, who are not VAT-payers;
- taxpayers, in case of sales of imported goods.
Kazakhstan as a member of the World Trade Organization and the Eurasian Economic Union has undertaken obligations to ensure traceability of goods included in the List of Exemptions that can be found on the website of the State Revenue Committee of the Ministry of Finance.
The current Tax Code provides for cases when an entrepreneur may not issue an invoice:
- when selling goods and providing labour, services, that are paid in cash or performed non-cash payment with the check of cash register;
- when selling goods and providing labour, services to individuals, that are paid by electronic money or using electronic payment means;
- when making payments via second-tier banks, a postal operator for utilities and communication services provided to an individual;
- registration of passenger transportation by rail or air transport with a travel ticket in paper format, electronic ticket or electronic travel document;
- in case of free transfer of goods to an individual who is not an individual entrepreneur or a person engaged in private practice.
Thus, the entrepreneur has the right not to issue an invoice in the abovementioned cases, except the sale of goods included in the List of exemptions. In accordance with the Rules for issuance of e-VAT invoices, when selling to individuals the goods included in the List of Exemptions, it is possible to issue one common e-VAT invoice, which indicates the total quantity of every type of goods.
At the same time, the Code of the Republic of Kazakhstan on administrative offenses provides for administrative responsibility for not issuing or untimely issuing an e-VAT invoice (Article 280-1):
- Non-statement of an e-VAT invoice by a taxpayer shall entail a notification;
- The action provided by part one of Article 280, committed repeatedly within a year after imposing an administrative penalty, shall entail a fine on subjects of small entrepreneurship in amount of forty monthly calculation indices.
- Statement of the invoice by a taxpayer in electronic form with violation of the term shall entail a notification.
- The action provided by part three of Article 280, committed repeatedly within a year after imposing an administrative penalty, shall entail a fine on subjects of small entrepreneurship in amount of twenty monthly calculation indices.
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