What “VAT is claimed as an offset” means
VAT is claimed as an offset when a taxpayer reduces the VAT charged on sales by the allowable amount of tax on purchased goods, work, or services. For an accountant in Kazakhstan, this means not merely recording input VAT in the accounts, but documenting the entitlement to the offset and ensuring that the information in the information systems is correct. The goods, work, and services received must be used or intended for use for the purposes of taxable sales turnover (Article 480 of the Tax Code of the Republic of Kazakhstan).
The substance of the transaction, its connection with the organization’s activities, and the consistency of the data are crucial. The mere existence of an electronic invoice does not guarantee that the amount will automatically and correctly be included in the offset. The supplier and buyer, the date and type of transaction, the turnover amount, the VAT amount, the document lines, notices, and details must be checked.
In 2026, when accounting for VAT, it is important for an accountant to distinguish between several actions: receiving a document from the supplier, recognizing the purchase in the accounts, checking the E-invoice, determining the allowable offset amount, and reporting the result in the tax returns. These stages are interconnected but do not replace one another.
VAT claimable as an offset: what the accountant should check
Before recording VAT as an offset, the documents relating to the transaction should be collected and reconciled. This check is particularly important if data is uploaded automatically or received from an external information system.
Practical checks may include:
- matching the supplier’s and buyer’s details;
- availability of an E-invoice for the purchase when one is required for the transaction;
- matching the turnover amount and VAT amount in the source document, accounting system, and E-invoice;
- correct allocation of amounts across lines and details;
- absence of arithmetic discrepancies, including at the tiyn level;
- connection between the purchase and the organization’s transactions;
- absence of duplicate recording of the same document;
- correct inclusion of the document in the tax period.
If the system reports that the purchase turnover amount has not been deducted under the E-invoice, the accountant should check the fields in the notice lines and details. All values must be compared down to the kopek, after which the document can be resubmitted for verification in the E-invoicing IS, saved, and posted in the accounting system.
Do not correct only the total amount without determining the cause of the discrepancy. The error may be in an individual line, quantity, price, tax base, or details. Even if the totals appear to match, the automated check may also fail if the lines are allocated differently.
Adjustment of VAT claimable as an offset
An adjustment of VAT claimable as an offset is an increase or decrease in the VAT amount in the cases stipulated by the Tax Code (Article 484 of the Tax Code of the Republic of Kazakhstan). It is required when the information initially recorded no longer corresponds to the documents or the actual terms of the transaction. This may be caused by a correction to an E-invoice, a change in value, a return, an identified discrepancy, or an incorrect allocation of data across lines.
First, determine which document modifies the original transaction. Then compare the original and corrected figures: purchase turnover, VAT amount, and line-by-line details. Changing only the accounting register without checking the underlying grounds is risky because the accounting data, E-invoice, and tax returns may diverge.
A safe sequence of actions is as follows:
- Find the original document and the related E-invoice.
- Determine the reason for the adjustment.
- Compare the previous and new figures for each line.
- Check the notice and its details.
- Make sure that the amounts match down to the kopek.
- Perform the check provided for by the accounting system.
- Save and post the documents in the correct sequence.
- Check how the change affected the tax period and tax returns.
If the adjustment relates to a period that has already been reported, its accounting treatment must be determined based on the documents for the specific transaction and the applicable provisions. If there are no unambiguous grounds, a date should not be invented or the amount moved between periods solely to eliminate a system discrepancy.
Offset, excess VAT, and a refund are not the same thing
Claiming input VAT as an offset must be distinguished from a refund of excess VAT. An offset is included in the calculation of the taxpayer’s liability, whereas a refund means claiming the relevant amount for refund when the established conditions are met.
A special pilot procedure for a simplified refund of excess VAT is available to certain grain market participants. Under this procedure, a refund may be made within 15 business days, followed by an in-house audit, if a bank guarantee for the required amount and term is provided, or within 100 calendar days after an in-house audit if no guarantee is provided.
The start of the refund period under this special procedure cannot be linked to paragraph 1 of Article 424 of the Tax Code. This provision establishes the deadline for submitting an assets and liabilities declaration at the place of residence or stay—by September 15 of the current year in which the obligation to submit it arose—and not the deadline for submitting a VAT return. The pilot project rules apply specifically to the refund of excess VAT provided for under the project and do not automatically apply to an ordinary VAT offset.
Participation in such a refund is also subject to special conditions, including continuous export sales of goods at the zero rate, correct recording of mandatory payments in the personal account, and fulfillment of the obligation to submit tax returns. The refund claim is stated in the VAT return, while additional information is submitted through the designated information system.
Frequently asked questions
What does “VAT is claimed” mean? — The query usually refers to claiming input VAT as an offset. The amount must be supported by documents and correctly recorded in the accounts, E-invoice, and tax returns.
Can VAT be claimed as an offset solely on the basis of an E-invoice? — The existence of an E-invoice is an important element of the check, but the accountant must also reconcile the substance of the transaction, the details, and the amounts in all related documents.
What should be done if the purchase turnover amount is not deducted? — Check the fields in the notice lines and details, compare the values down to the kopek, and repeat the check through the E-invoicing IS. After successful verification, the document should be saved and posted.
When is an adjustment of VAT claimable as an offset required? — When the original documents have been amended or a discrepancy has been identified in the turnover amount, VAT, period, or line-by-line details. The adjustment must be based on documentary grounds.
Does a VAT offset mean that the amount can be refunded from the state budget? — No. A VAT offset and a refund of excess VAT are different procedures; separate conditions and procedures apply to refunds.