Basic VAT Formulas
To charge VAT on a price excluding tax, the accountant multiplies the taxable amount by the applicable VAT rate. If the rate is denoted by r and expressed as a decimal, the formula is: VAT = taxable amount × r. The price including tax is calculated using the formula: price including VAT = taxable amount + VAT.
If only the final amount including VAT is known, the tax can be extracted by reverse calculation: VAT = amount including VAT × r / (1 + r). The price excluding VAT is then determined as follows: price excluding VAT = amount including VAT / (1 + r).
In 2026, the standard VAT rate in Kazakhstan is 16%. For calculations at the standard rate, the coefficient 0.16 is used: VAT is charged using the formula taxable amount × 0.16, while it is extracted from the final amount using the formula amount including VAT × 16 / 116. If a different taxation procedure is prescribed for a specific transaction, the parameters of that transaction are used in the calculation.
It is important to distinguish between three amounts:
- taxable amount — the value on which the tax is calculated;
- VAT amount — the result of applying the rate to the taxable amount;
- final price — the taxable amount together with the tax charged.
A common mistake is to multiply an amount that already includes VAT by the rate. Such a calculation charges the tax again instead of extracting it from the total. At the standard rate of 16%, the tax is extracted from the final amount using the coefficient 16/116.
Output VAT and Creditable VAT
Calculating tax on sales alone is insufficient to determine the final figure. The accountant separately records VAT charged on taxable transactions and VAT that is creditable in accordance with the rules applicable to the transaction and the supporting documents.
The general arithmetic logic can be presented as follows: VAT difference = output VAT − creditable VAT. This formula helps verify the calculation but does not replace completion of the tax return. When preparing reports, adjustments and the specific requirements for recording the relevant transactions are accounted for separately.
If the result of the subtraction is negative, the VAT credited exceeds the output VAT. This arithmetic difference does not in itself determine the refund amount: the established tax procedure applies when reporting the figure and taking subsequent action.
A transitional rule applies to applications and claims for refunds of excess VAT submitted before January 1, 2026: they are reviewed in accordance with the procedure and time limits established by the Tax Code dated December 25, 2017 (Article 833 of the Tax Code of the RK). Therefore, when analyzing carried-forward amounts, it is important for the accountant to consider the date on which the application or claim was submitted, not only the period in which the excess arose.
How an Accountant Can Verify the Calculation
First, determine whether the price stated in the contract, invoice, or source document includes or excludes VAT. This determines which formula to use: charging tax on a price excluding VAT or extracting it from the total amount.
Then verify the following in sequence:
- how the transaction is treated for VAT purposes;
- which rate applies specifically to this transaction and the relevant date;
- whether the taxable amount has been determined correctly;
- whether the price and the VAT terms match in the contract, source documents, and accounting system;
- whether there are documents supporting the VAT credit;
- whether returns, discounts, and other adjustments have been accounted for;
- whether the final result matches the tax return and accounting register data.
The calculation can conveniently be checked by performing the reverse operation. After extracting VAT, add the price excluding tax and the extracted amount: the result should match the original final price. Any difference caused by rounding should be checked against the calculation precision and the rounding settings in the accounting system.
If 1C reports that both the tax increase and decrease amounts are zero at the selected rate, check that the adjustment document has been completed correctly. In particular, compare the rate, adjustment amounts, transaction type, and details of the original document. The message itself does not confirm that the taxable amount or the applied rate is correct.
Do not enter an arbitrary amount merely to post the document. First compare the underlying document, transaction type, selected rate, and adjustment direction. After making corrections, recheck the document entries, accounting registers, and figures that will be reported in the tax returns.
Frequently Asked Questions
How do I charge VAT on a price excluding tax? — At the standard rate of 16%, multiply the taxable amount by 0.16. Add the resulting tax to the taxable amount to determine the final price including VAT.
How do I extract VAT from the total amount? — At the standard rate of 16%, multiply the amount including VAT by 16 and divide it by 116. Before calculating, make sure that the original price actually includes tax.
Can the same formula be applied to all transactions? — The mathematical logic for charging and extracting tax remains the same, but the initial calculation parameters are determined for each specific transaction. Therefore, the applicable rate and taxable amount must be established before performing the calculation.
Does a negative difference mean that the VAT will be refunded immediately? — No. A negative arithmetic result indicates that the VAT credited exceeds the output VAT, but it does not in itself determine the refund amount. The transitional rule under Article 833 of the Tax Code of the RK applies to applications and claims submitted before January 1, 2026.
What should I do if 1C does not accept the VAT adjustment amount? — Check the rate, increase and decrease amounts, transaction type, and details of the underlying document. After making corrections, recalculate and compare the result with the original document.
Sources
- Official texts of the legislation of the Republic of Kazakhstan: transitional provisions on the review of applications and claims for refunds of excess VAT submitted before January 1, 2026 (Article 833 of the Tax Code of the RK).