What Generally Established VAT Means
The query “generally established VAT” usually refers to VAT accounting by a taxpayer applying the generally established taxation procedure. However, the generally established procedure and VAT describe different elements of taxation. In particular, for an IE, the generally established procedure determines the rules for calculating taxable income and income subject to tax, reducing income, accounting for deductions and carrying forward losses (Article 393 of the Tax Code of the Republic of Kazakhstan).
Applying the generally established procedure does not in itself determine how VAT should be accounted for in a specific transaction. The accountant must separately document the registration status of the organization or IE, the characteristics of the transaction and the grounds used when recording it in the accounts.
The absence of a VAT amount in a particular document should be assessed with the same degree of caution. A single document does not provide a complete picture of the company’s activities: the conclusion must be based on the agreement, source documents, accounting system data and tax registers relating to the relevant transaction.
Who It Applies to and What Must Be Determined for a Transaction
It is advisable to begin the review not with the rate, but with information about the taxpayer. The accountant should determine the taxpayer’s legal form, the applicable taxation procedure and VAT registration details as of the transaction date. For an IE applying the generally established procedure, taxable income is calculated separately, taking into account income, deductions and prescribed adjustments (Article 393 of the Tax Code of the Republic of Kazakhstan).
For each sale, it is useful to answer several questions in sequence:
- who is specified as the seller and the buyer;
- what constitutes the subject matter of the agreement and its actual performance;
- where the transaction took place and how this is supported by documents;
- how the transaction is classified for VAT accounting purposes;
- to which date and reporting period it is attributed;
- which source and tax documents support its recognition;
- whether any changes were made after the transaction was initially recorded.
Particular attention is required for agreements in which the price is worded ambiguously. The terms should make it clear whether the VAT amount is included in the agreed price or charged separately. The wording of the agreement must be compared with the invoice for payment, source document, VAT invoice and actual settlements. A subsequent change to the price or documents may affect settlements with the counterparty, accounting entries and tax reporting.
Purchases require a separate control procedure. The existence of payment and a separately stated VAT amount in the document should be compared with the purpose of the purchase, document details, supplier information and recognition of the transaction in the registers. It is advisable to retain the basis for the accountant’s decision together with a breakdown of the relevant amount.
How to Organize Calculation and Accounting
It is advisable to begin the practical work with a register of transactions for the reporting period. Sales and purchases can be separated in the register, with the adopted transaction classification specified within each group. Such a table helps compare agreements, source documents, VAT invoices, accounting system data and declaration lines.
The workflow may be organized as follows:
- Verify information about the taxpayer and counterparties as of the transaction dates.
- Compare the subject matter of the agreement with its actual performance and the documents issued.
- Document the adopted classification of the sale or purchase.
- Check the transaction recognition date and the document’s reporting period.
- Compare the amounts charged with the amounts recognized for purchases.
- Review returns, discounts, corrections and other changes separately.
- Reconcile the final accounting figures with the registers and declaration.
If a company has transactions with different accounting classifications, shared expenses should be processed using a consistently applied methodology. The accountant must verify the initial calculation base and the completeness of the data used. A zero or unpopulated base in the accounting software may stop the calculation or distort the result; therefore, after correcting the settings, the business indicators and final amounts must be checked again.
Analytics are particularly important. Tax accounting attributes should be used consistently in directories and documents. If the same transaction is recorded in different sections of the system with inconsistent settings, the declaration may differ from the accounting registers. Before closing the period, it is useful to look for arithmetic discrepancies, documents without a tax attribute, duplicates, omitted VAT invoices and entries attributed to another period.
For an IE applying the generally established procedure, VAT reconciliation should not be combined with the calculation of income subject to tax. The latter is determined through income, its adjustments, deductions, adjustments to deductions, reductions in taxable income and losses carried forward in accordance with Article 393 of the Tax Code of the Republic of Kazakhstan. Therefore, the working registers must make it possible to trace the calculation of the relevant indicators separately.
What to Check Before Reporting
Before preparing the declaration, the accountant should perform checks in several areas. First, sales transactions must be reconciled with agreements, source documents, VAT invoices and accounting system data. Purchase amounts should then be analyzed: for each material item, it should be clear how it is classified, which documents support it and in which period it is recognized.
Changes to the original data should then be reviewed. The return of goods, a price change, termination of an agreement or correction of details may change previously recognized indicators. For control purposes, the entire document chain should be traced: the original transaction, the document recording the change and the entry recognizing the result in the accounts.
Separate review is useful for agreements involving advance payments, long-term performance, a non-resident, multiple places of performance or a composite subject matter. For such agreements, the accountant should prepare a brief accounting memorandum describing the actual circumstances, listing the supporting documents and documenting the procedure for recognizing each part of the transaction.
Before submitting the declaration, breakdowns of the final lines and reconciliation results should be retained. This will make it possible to trace the origin of the indicators and identify the cause of any discrepancy more quickly. After submission, the reporting acceptance status must be checked and confirmation from the information system retained. It is also advisable to document which version of the declaration was submitted and which registers were used in its preparation.
A transitional rule applies to applications and claims for the refund of excess VAT submitted before January 1, 2026: they are reviewed according to the procedure and within the time limits stipulated by the Tax Code dated December 25, 2017 (Article 833 of the Tax Code of the Republic of Kazakhstan). Such documents should therefore be kept separate from applications submitted for 2026 transactions.
Frequently Asked Questions
Does the generally established procedure automatically mean that VAT is accounted for in the same way for all transactions? — No. The generally established procedure, particularly for an IE, governs the calculation of income subject to tax, including income, deductions, adjustments and losses (Article 393 of the Tax Code of the Republic of Kazakhstan). The VAT accounting procedure must be determined separately based on the taxpayer’s details and the documents for the specific transaction.
Can the VAT accounting procedure be determined solely from the wording of the agreement? — The agreement alone is insufficient. Its terms must be compared with actual performance, source documents, VAT invoices, information about the parties and entries in the accounting system.
Is a separately stated VAT amount in a document sufficient for recognizing it on a purchase? — No. The accountant must also verify the details and content of the documents, the purpose of the purchase, supplier information, the reporting period and the consistency of the data with the tax registers.
What should be done if the accounting software does not allocate VAT? — Check the source indicators, completion of the calculation base and transaction attributes in the documents. After correcting the data, the calculation should be repeated and the result compared with the source documents and registers.
How can errors be avoided before filing the declaration? — Reconcile sales, purchases, VAT invoices, changes to the original documents and tax registers. The final declaration lines should be retained together with their breakdowns so that each amount can be traced to a supporting document.
Sources
Tax Code of the Republic of Kazakhstan 2026: Article 393 — calculation of taxable income and income subject to tax of an IE applying the generally established taxation procedure; Article 833 — transitional procedure for reviewing applications and claims for the refund of excess VAT submitted before January 1, 2026.