In 2026, Article 127 of the Tax Code of the RK regulates the simplified procedure for refunding the amount of tax excess: the refund is made using the tax risk management system, without a tax audit, within fifteen business days following the date on which the refund claim is submitted (Article 127 of the Tax Code of the RK).
Therefore, the query “Article 127 Kazakhstan,” as applied to the Tax Code, means Article 127 on the simplified procedure for refunding the amount of tax excess. For an accountant, the key matters are the conditions for applying this procedure, the absence of an outstanding notice, the existence of an amount previously confirmed for refund, and the refund period established by the Code.
Article 127 Kazakhstan: how to identify the relevant article
The Kazakh word “бап” means “article.” The wording “Article 127 Kazakhstan” by itself contains only the number of the provision. To determine its content, the name of the code must be taken into account.
If the reference is to the 2026 Tax Code of the Republic of Kazakhstan, Article 127 is titled “Simplified procedure for refunding the amount of tax excess.” It establishes:
- what the simplified refund procedure entails;
- which taxpayers are entitled to apply it;
- which conditions a taxpayer must meet to receive a refund;
- the period within which the amount of tax excess is refunded.
The right to choose the simplified procedure is also provided for by Article 126 of the Tax Code of the RK. Under this provision, a taxpayer selling goods, performing work, or providing services subject to the zero rate chooses either a refund of the amount of tax excess under the simplified procedure pursuant to Article 127 or a refund based on the results of a thematic tax audit pursuant to Article 128 (Article 126 of the Tax Code of the RK).
If a document, correspondence, or search query specifies only “Article 127,” the accountant needs to determine:
- whether the Tax Code of the RK is specified;
- whether the matter concerns a refund of the amount of tax excess;
- the tax period for which the refund is claimed;
- whether the taxpayer had sales turnover subject to the zero rate;
- which refund procedure the taxpayer selected;
- whether a refund claim has been submitted.
An article number alone is insufficient for applying a tax provision: in documents, it should be correlated with the full name of the code and the subject matter of the application.
Article 127 of the Tax Code of the RK: simplified procedure for refunding the amount of tax excess
Article 127 of the Tax Code of the RK concerns the refund of the amount of tax excess without conducting a tax audit. Such a refund is made using the tax risk management system (Article 127 of the Tax Code of the RK).
The simplified procedure is not a general refund method available to every taxpayer. The article defines the categories of taxpayers entitled to apply this procedure, as well as the conditions they must meet simultaneously.
Article 127 should be applied in conjunction with Article 126 of the Tax Code of the RK. Article 126 determines the amounts refundable to taxpayers selling goods, performing work, or providing services subject to the zero rate and provides a choice between the simplified procedure and a refund based on the results of a thematic tax audit (Article 126 of the Tax Code of the RK).
What does the simplified procedure entail?
The simplified procedure entails refunding the amount of tax excess using the tax risk management system without conducting a tax audit. It is precisely the absence of a tax audit when making the refund that distinguishes this option from a refund based on the results of a thematic tax audit (Article 127 of the Tax Code of the RK).
When the simplified procedure is selected, the tax authority issues the taxpayer a notice of the amount of tax excess confirmed for refund under this procedure. This rule is established by Article 126 of the Tax Code of the RK and concerns the formalization of the result of applying the selected procedure (Article 126 of the Tax Code of the RK).
If only part of the amount of tax excess is refunded under the simplified procedure, the taxpayer is entitled to claim a refund of the remaining part based on the results of a thematic tax audit. Therefore, selecting the simplified procedure for part of the amount does not preclude a refund of the balance under another option provided for by the Code (Article 126 of the Tax Code of the RK).
Who is entitled to apply the simplified procedure?
Article 127 of the Tax Code of the RK identifies two categories of taxpayers entitled to apply the simplified procedure for refunding the amount of tax excess.
- Taxpayers subject to tax monitoring who had sales turnover subject to the zero rate during the calendar year.
- Taxpayers whose sales turnover subject to the zero rate accounts for at least 50 percent of their total taxable sales turnover for the tax period.
For the first category, two circumstances are important simultaneously: the taxpayer is subject to tax monitoring and had sales turnover subject to the zero rate during the calendar year.
For the second category, a quantitative criterion applies: the share of sales turnover subject to the zero rate must be at least 50 percent of total taxable sales turnover for the relevant tax period (Article 127 of the Tax Code of the RK).
When verifying entitlement to the simplified procedure, the accountant should use data for the specific period named in the relevant condition. For a taxpayer subject to tax monitoring, the article specifies the calendar year, while the tax period applies when calculating the share of zero-rated turnover.
Which conditions must be met simultaneously?
For the amount of tax excess to be refunded under the simplified procedure, Article 127 of the Tax Code of the RK establishes two conditions that must be met simultaneously:
- there is no outstanding notice as of the date on which the refund claim is submitted;
- during the twelve months preceding the date on which the refund claim is submitted, there is an amount of tax excess confirmed for refund based on the results of a tax audit.
The first condition is assessed as of a specific date—the date on which the refund claim is submitted. The article refers specifically to the absence of an outstanding notice as of that date (Article 127 of the Tax Code of the RK).
The second condition relates to the preceding twelve-month period. Within that period, the taxpayer must have an amount of tax excess confirmed for refund based on the results of a tax audit (Article 127 of the Tax Code of the RK).
Both conditions apply simultaneously. Meeting only one of them does not comply with the wording of paragraph 3 of Article 127 of the Tax Code of the RK.
When preparing the claim, the accountant must distinguish between two time references: the status of notices is checked as of the date on which the claim is submitted, while the existence of an amount previously confirmed is checked for the twelve months preceding that date.
When is the refund made?
The amount of tax excess is refunded under the simplified procedure within fifteen business days following the date on which the refund claim is submitted (Article 127 of the Tax Code of the RK).
The event that starts the prescribed period is the submission of the refund claim. The day on which it is submitted is not included in the specified fifteen business days because the article defines the period as beginning after that day.
The provision uses business days rather than calendar days. Therefore, for accounting procedures, the date on which the claim is submitted must be recorded separately from the expected expiry date of the refund period.
Article 127 of the Tax Code of the RK does not link the commencement of the fifteen-day period to the conduct of a tax audit: by definition, the simplified procedure is applied without one.
How Article 127 relates to Article 126 of the Tax Code of the RK
Article 126 of the Tax Code of the RK establishes the procedure for refunding the amount of tax excess to taxpayers that sell goods, perform work, or provide services subject to the zero rate.
In the case of continuous sales, the amount of tax excess is refundable. In the case of non-continuous sales, the refundable amount is the portion of tax credited for goods, work, and services used for the purposes of sales turnover subject to the zero rate (Article 126 of the Tax Code of the RK).
Article 126 recognizes the sale of goods, performance of work, or provision of services subject to the zero rate as continuous sales when both of the following conditions are met:
- the sales take place during three consecutive tax periods;
- turnover subject to the zero rate for the tax period accounts for at least 70 percent of total taxable sales turnover.
Such sales are recognized as continuous in each of the specified tax periods (Article 126 of the Tax Code of the RK).
The continuous-sales criterion in Article 126 and the eligibility criterion for the simplified procedure in Article 127 serve different purposes. In Article 126, a share of at least 70 percent is used to recognize sales as continuous. In Article 127, a share of at least 50 percent of total taxable turnover for the tax period is one of the grounds allowing a taxpayer to apply the simplified procedure (Articles 126 and 127 of the Tax Code of the RK).
For international transportation, the amount of tax excess refundable is calculated by applying the proportion of the physical volume of international transportation in the total volume of transportation to the amount of tax credited for the tax period for which the refund claim was submitted (Article 126 of the Tax Code of the RK).
After determining the refundable amount, the taxpayer selects one of the available options:
- the simplified procedure under Article 127 of the Tax Code of the RK;
- a refund based on the results of a thematic tax audit under Article 128 of the Tax Code of the RK.
If the simplified procedure is selected, the taxpayer categories, conditions, and period directly established by Article 127 of the Tax Code of the RK apply.
What an accountant should check before applying Article 127 of the Tax Code of the RK
Work on the refund should begin by determining the amount refundable under Article 126 of the Tax Code of the RK and the procedure selected by the taxpayer. The conditions of Article 127 of the Tax Code of the RK are then checked.
The verification sequence may be as follows:
- Determine the grounds for the refund. Establish that the taxpayer sells goods, performs work, or provides services subject to the zero rate and determine the applicable provision of Article 126 of the Tax Code of the RK.
- Determine the nature of the sales. For the purposes of Article 126, check whether the sales are continuous or non-continuous and which amount is consequently refundable.
- Record the selected procedure. Establish whether the simplified refund under Article 127 of the Tax Code of the RK or a refund based on the results of a thematic tax audit has been selected.
- Check the taxpayer category. Confirm that the taxpayer is subject to tax monitoring and had zero-rated turnover during the calendar year, or calculate the share of turnover subject to the zero rate in total taxable turnover for the tax period.
- Check notices. There must be no outstanding notice as of the date on which the claim is submitted.
- Check the preceding period. During the twelve months preceding the claim date, there must be an amount of tax excess confirmed for refund based on the results of a tax audit.
- Record the claim date. The fifteen-business-day refund period is calculated from this date.
- Compare the amount with the tax authority’s notice. Under the simplified refund procedure, the taxpayer is issued a notice of the amount of tax excess confirmed for refund under the simplified procedure.
This sequence prevents the criteria in Article 126 of the Tax Code of the RK from being confused with the conditions in Article 127 of the Tax Code of the RK. First, the grounds and amount of the refund are determined; then, the entitlement to apply the simplified procedure and compliance with its conditions are verified.
How to calculate the share of turnover for Article 127
For a taxpayer applying the criterion in subparagraph 2 of paragraph 2 of Article 127 of the Tax Code of the RK, sales turnover subject to the zero rate is compared with total taxable sales turnover for the tax period.
A taxpayer for which the resulting share is at least 50 percent is entitled to apply the simplified procedure. The article establishes a minimum threshold; therefore, a value of exactly 50 percent meets this criterion (Article 127 of the Tax Code of the RK).
In this calculation, the indicator established by Article 127 may not be replaced with the continuous-sales criterion in Article 126. Continuous sales require a share of at least 70 percent in each of three consecutive tax periods, whereas Article 127 establishes a share of at least 50 percent for the tax period as a condition of eligibility for the simplified procedure (Articles 126 and 127 of the Tax Code of the RK).
Which dates are relevant
Article 127 of the Tax Code of the RK uses several time references:
- the calendar year—for the zero-rated turnover of a taxpayer subject to tax monitoring;
- the tax period—for determining the share of sales turnover subject to the zero rate;
- the claim submission date—for checking the absence of an outstanding notice;
- the preceding twelve months—for checking the existence of an amount previously confirmed for refund based on the results of a tax audit;
- fifteen business days following the date on which the claim is submitted—for refunding the amount under the simplified procedure.
When preparing an internal calculation, these periods should be presented separately. For example, the twelve-month period relates to the amount previously confirmed rather than to the calculation of the 50-percent share of turnover.
Notice of the confirmed amount
When the amount of tax excess is refunded under the simplified procedure, the tax authority issues the taxpayer a notice of the amount of tax excess confirmed for refund under the simplified procedure (Article 126 of the Tax Code of the RK).
In their work, the accountant should compare the confirmed amount specified in the notice with the amount of the claimed refund and with the portion of the amount for which the simplified procedure was selected.
If the simplified procedure was selected only for part of the amount of tax excess, the remaining part may be claimed for refund based on the results of a thematic tax audit. This right is expressly provided for by Article 126 of the Tax Code of the RK.
For a refund based on the results of a thematic tax audit, the tax authority issues a tax audit report specifying the amount confirmed for refund and, in cases provided for by the Code, also a conclusion to the tax audit report (Article 126 of the Tax Code of the RK).
Common mistakes when reading Article 127 of the Tax Code of the RK
Mistake 1. Assuming that the simplified procedure is available to every taxpayer.
Article 127 expressly defines the categories of taxpayers entitled to apply it. These are taxpayers subject to tax monitoring that had zero-rated turnover during the calendar year, or taxpayers whose share of such turnover is at least 50 percent of total taxable turnover for the tax period.
Mistake 2. Checking only the taxpayer category.
In addition to belonging to one of the specified categories, the conditions concerning the absence of an outstanding notice and the existence of an amount confirmed for refund based on the results of a tax audit during the preceding twelve months must be met simultaneously (Article 127 of the Tax Code of the RK).
Mistake 3. Confusing the indicators of 50 and 70 percent.
The indicator of at least 50 percent is established by Article 127 for one of the categories of taxpayers entitled to apply the simplified procedure. The indicator of at least 70 percent is established by Article 126 for recognizing sales as continuous, subject to the condition concerning three consecutive tax periods (Articles 126 and 127 of the Tax Code of the RK).
Mistake 4. Calculating the refund period in calendar days.
Article 127 establishes fifteen business days following the date on which the refund claim is submitted.
Mistake 5. Assuming that the simplified procedure requires a tax audit.
Under the definition in paragraph 1 of Article 127, the refund is made using the tax risk management system without conducting a tax audit.
Mistake 6. Assuming that selecting the simplified procedure prevents a refund of the balance.
When the simplified procedure is selected for part of the amount, the taxpayer is entitled to claim a refund of the remaining part based on the results of a thematic tax audit (Article 126 of the Tax Code of the RK).
Questions and answers
What does “127 бап” mean in English?
It means “Article 127.” If the reference is to the 2026 Tax Code of the RK, the article regulates the simplified procedure for refunding the amount of tax excess without conducting a tax audit (Article 127 of the Tax Code of the RK).
What refund period is established by Article 127 of the Tax Code of the RK?
The amount of tax excess is refunded within fifteen business days following the date on which the refund claim is submitted (Article 127 of the Tax Code of the RK).
Who is entitled to apply the simplified procedure?
It may be applied by taxpayers subject to tax monitoring that had sales turnover subject to the zero rate during the calendar year, as well as taxpayers whose such turnover accounts for at least 50 percent of total taxable sales turnover for the tax period (Article 127 of the Tax Code of the RK).
Is a share of zero-rated turnover of at least 50 percent sufficient?
This indicator places the taxpayer in one of the categories entitled to apply the simplified procedure. For a refund, the conditions in paragraph 3 of Article 127 must also be met simultaneously: the absence of an outstanding notice as of the claim date and the existence of an amount confirmed for refund based on the results of a tax audit during the preceding twelve months (Article 127 of the Tax Code of the RK).
What does “127 бап 1 бөлім” mean?
It means “part 1 of Article 127.” In the Tax Code of the RK, paragraph 1 of Article 127 defines the essence of the simplified procedure: refunding the amount of tax excess using the tax risk management system without conducting a tax audit.
From which day is the refund period calculated?
The fifteen business days are calculated from the day following the date on which the refund claim is submitted (Article 127 of the Tax Code of the RK).
What is the significance of an outstanding notice?
The taxpayer must have no outstanding notice as of the date on which the refund claim is submitted. This is one of the two conditions that Article 127 requires to be met simultaneously.
For what period is the previously confirmed amount checked?
The taxpayer must have an amount of tax excess confirmed for refund based on the results of a tax audit during the twelve months preceding the date on which the refund claim is submitted (Article 127 of the Tax Code of the RK).
What is the difference between the indicators of 50 and 70 percent?
At least 50 percent is the share of zero-rated turnover in total taxable turnover for the tax period established by Article 127 for one of the categories of taxpayers entitled to use the simplified procedure. At least 70 percent is one of the continuous-sales criteria under Article 126, applied together with the condition concerning sales in three consecutive tax periods (Articles 126 and 127 of the Tax Code of the RK).
Is a tax audit mandatory for a simplified refund?
No. Article 127 defines the simplified procedure as a refund using the tax risk management system without conducting a tax audit.
Can the remaining part of the amount be refunded based on the results of an audit?
Yes. If the simplified procedure is selected for part of the amount of tax excess, the taxpayer is entitled to claim a refund of the remaining part based on the results of a thematic tax audit (Article 126 of the Tax Code of the RK).
Which document does the taxpayer receive under the simplified refund procedure?
The tax authority issues a notice of the amount of tax excess confirmed for refund under the simplified procedure (Article 126 of the Tax Code of the RK).
What should be done if a document specifies only “127 бап”?
The full name of the code should be determined. If the Tax Code of the RK is specified and the matter concerns a refund of the amount of tax excess, Article 127 of the Tax Code of the RK on the simplified refund procedure applies.
Provisions of the Tax Code of the RK related to Article 127
The principal provision is Article 127 of the Tax Code of the RK, “Simplified procedure for refunding the amount of tax excess.” It defines the substance of the simplified procedure, the taxpayer categories, the mandatory conditions, and the refund period.
Article 126 of the Tax Code of the RK regulates the refund of the amount of tax excess to taxpayers selling goods, performing work, or providing services subject to the zero rate. It establishes rules for continuous and non-continuous sales, provides a choice of refund procedure, and provides for a notice of the amount confirmed for refund under the simplified procedure.