Tax Reform 2026 in Kazakhstan: What Accountants and Businesses Should Prepare For
Introduction: The New Reality of the Tax Code
As of January 1, 2026, Kazakhstan's tax system enters a fundamentally new phase of development. A completely new Tax Code (Law No. 214-VIII dated 18.07.2025) comes into force, fully replacing the 2017 edition. This is not another batch of amendments, but a fundamental revision of the rules of the game, requiring immediate adaptation from accounting departments and business managers. The most important financial indicator for 2026 will be the monthly calculation index (MCI) of 4,325 tenge. Our task as experts is to break down the key changes regarding VAT, retail tax, and 1C system settings, relying exclusively on the approved legislative framework.
The Main Shift: 16% VAT and New Registration Thresholds
The 2026 reform radically changes the parameters of value added tax, increasing the tax burden and lowering the threshold for mandatory registration.| Parameter | Before 2026 | From 2026 || ------ | ------ | ------ || Base VAT rate | 12% | 16% || Mandatory registration threshold | 20,000 MCI (variable) | 10,000 MCI || Legislative framework | Tax Code dated 25.12.2017 (to become invalid) | Tax Code No. 214-VIII dated 18.07.2025 |
For budget planning in 2026, it is important to note: the threshold for VAT registration will now be 43,250,000 tenge (10,000 MCI). Please note that the familiar references to Articles 369, 422, or 568 of the old code become historical and no longer valid. All accounting from January 1, 2026 must be based on the new numbering and provisions of Law No. 214-VIII.
Rules for VAT Offset Under the New Code (Art. 480 and 482)
According to Article 480 of the new code, for the lawful offset of VAT, the simultaneous fulfillment of conditions regarding recipient registration, use of assets in taxable turnover, and availability of correct documents (ESF, customs declarations) is required. Methodological nuance (Clause 9, Art. 480): If there are several grounds for offsetting the VAT amount, the tax is accepted for accounting only once — based on the earliest ground. This is a critically important nuance for passing tax audits and correctly forming the offset period. Critically important restrictions (Art. 482): VAT is categorically not accepted for offset in the following cases:
- Cash payment limit: if the transaction amount (including tax) exceeds 1,000 MCI (4,325,000 tenge) . This restriction applies regardless of the frequency of payments within a single transaction.
- Defects in invoices:
- Absence of invoice certification via EDS (electronic digital signature).
- Issuance of an invoice in paper form in cases where the law provides exclusively for an electronic format.
- Incorrect indication of the parties' TIN/BIN, absence of date, number, or name of goods/services.
ESF IS Marking: the taxpayer is obliged to place a special mark on the recognition of VAT for offset in the ESF IS before submitting the declaration in which this offset is recorded.
Declaration 300.00 and Import Specifics
Form 300.00 remains for VAT reporting. However, when importing goods for which tax is paid using the offset method (Articles 427 and 428 of the new code), the accountant must use Annex 300.04. Methodology for filling out and transferring totals: Data from Annex 300.04 is aggregated and transferred to the main form as follows:
1. The import amount from line 300.04.001 A is transferred to line 300.00.029 A .
2. The VAT amount from line 300.04.001 B is transferred simultaneously to lines 300.00.011 and 300.00.029 B . Line 300.04.001 provides for distribution among the following categories of imported goods:
- Equipment and agricultural machinery.
- Vehicles:
- Freight road transport rolling stock.
- Airplanes and helicopters (medical and civilian).
- Railway locomotives and wagons.
- Sea vessels.
- Consumables and biological resources:
- Spare parts.
- Pesticides (chemical agents).
- Breeding animals, artificial insemination equipment, and live cattle.
Retail Tax: Current Status
The special tax regime (STR) for retail tax is integrated into the new Tax Code No. 214-VIII. For taxpayers under this regime, the reporting form established is Declaration 913.00 . Expert warning: At the moment, the available materials on the new code do not contain approved rates, specific income thresholds, or an exhaustive list of permitted types of activity (OKED). These parameters will be clarified directly in the text of the new code and subordinate acts. It is strictly prohibited to use the provisions of the old code (Art. 696-1) for planning purposes in 2026, as they become invalid.
Technical Readiness: 1C Update and Configuration
To comply with the new legislative requirements, it is necessary to use up-to-date versions of the software. Currently these are:
- "Accounting for Kazakhstan" (including the basic version) — edition 3.0.73.1 .
- "Payroll and HR for State Organizations of Kazakhstan" — edition 1.0.42.3 . Instructions for configuring the system by January 1, 2026:
1. Configuration update: Install the specified releases. Despite the absence of critical changes in the current forms, they contain the basis for further updates.
2. Changing reference and regulatory information: The transition to 16% VAT is a change in master data . It is necessary to create (or modify) a 16% rate in the "VAT Rates" reference book for automatic application in documents starting from the beginning of 2026.
3. Cash limit control: In the "Accounting Parameters" section, it is necessary to configure control of the cash payment limit of 1,000 MCI (4,325,000 tenge) . It is recommended to set the control status to Warning or Hard Block to prevent processing of payments that would deprive the company of the right to VAT offset.
4. Integration verification: Ensure that the exchange mechanisms with the ESF IS correctly handle the new obligation to place a mark on VAT offset recognition before submitting the declaration.
Conclusion: Preparation Checklist
To minimize tax risks, we recommend that the accountant take the following actions:
- Confirm the transition to the legal framework of the new Tax Code No. 214-VIII.
- Ensure the application of the 16% VAT rate from the first day of 2026 through 1C reference books.
- Conduct a review of the company's turnover to monitor the 10,000 MCI threshold.
- Configure strict control of cash payments exceeding 4,325,000 tenge in 1C.
- Update the accounting policy regarding the preparation of Declarations 300.00 and 913.00. Since the tax authorities continue to work on packages of amendments (in particular, based on the results of the 21st meeting of the Project Office), it is necessary to regularly check for updates to your accounting systems and monitor the publication of subordinate acts to the new Code.