How to Determine the Amount Excluding VAT
The amount excluding VAT is the cost of goods, work, or services without value-added tax included. If the final amount including VAT is known, the cost excluding tax is calculated by dividing the final amount by a coefficient equal to one plus the applicable VAT rate expressed as a decimal. VAT itself is calculated as the difference between the amount including tax and the resulting cost excluding tax.
The general formula is as follows:
Amount excluding VAT = amount including VAT / (1 + VAT rate).
The rate is entered into the formula as a decimal. In 2026, the standard VAT rate in Kazakhstan is 16%, so a coefficient of 1.16 is used when it applies. For transactions taxed at a different rate or exempt from VAT, the calculation is performed according to the tax treatment of the specific turnover.
If the cost is initially set excluding tax, the calculation is performed differently:
- the VAT amount is determined by multiplying the cost excluding VAT by the applicable rate;
- the final cost including VAT equals the amount excluding VAT plus the accrued tax;
- if a zero rate or VAT exemption applies, the documents specify the applicable tax treatment of the transaction.
It is important not to confuse the concepts of “turnover excluding VAT,” “VAT amount,” and “total amount payable.” These are different indicators that must be consistent in the contract, source documents, invoice, and tax records. As a general rule, cost and amount values in an invoice are stated in the national currency of the Republic of Kazakhstan (Article 492 of the Tax Code of the Republic of Kazakhstan).
VAT Amount in Kazakhstan: What an Accountant Should Check
The calculation begins not with arithmetic but with the classification of the transaction. The accountant should determine whether the recipient or supplier is registered as a VAT payer for the relevant calculation, whether the transaction constitutes taxable turnover, and which rate applies. In particular, a recipient that is a VAT payer may offset the tax if the required document is available and the goods, work, or services received are or will be used for taxable sales turnover (Article 480 of the Tax Code of the Republic of Kazakhstan).
Practical verification procedure:
- Review the contract and determine whether the price is stated including or excluding VAT.
- Check the VAT registration of the parties and the tax treatment of the transaction.
- Determine the rate applicable to the reported turnover.
- Compare the contract, source document, invoice, and accounting entry.
- Check the rounding, tax amount, and final amount payable.
The wording of the price in the contract is particularly important. The statements “the cost includes VAT” and “VAT is charged in addition to the cost” produce different commercial results. In the first case, the tax is separated from the agreed final price. In the second case, the tax is added to the price excluding VAT. If the document states only the price without explaining the tax treatment, the terms concerning the composition of the price should be agreed upon before the sale is documented.
For transactions in 2026, VAT of 16% is used in calculations at the standard rate. Settings and calculations from the previous period must not be automatically carried over to transactions in 2026: the rate in the accounting system, contract, and documents must correspond to the tax treatment of the reported turnover.
VAT Amount and Turnover in 2026
The query “VAT amount 2026 turnover” may relate to several tasks: calculating tax on an individual sale, determining taxable turnover, or calculating the totals for a tax period. In all cases, the cost excluding VAT is used in the calculation; however, the final indicators for the tax period also depend on the VAT amounts eligible for offset and the procedure used to determine them.
For an individual sale, an accountant usually determines the following in sequence:
- the cost excluding VAT;
- the applicable rate;
- the accrued VAT amount;
- the final cost including VAT.
VAT eligible for offset is analyzed separately when calculating the figures for a tax period. For a registered payer, such VAT is the tax payable on goods, work, or services received and specified in a document prescribed by the Tax Code, provided that the purchase is or will be used for taxable sales turnover (Article 480 of the Tax Code of the Republic of Kazakhstan). Therefore, the VAT shown on a single invoice should not automatically be equated with the amount payable to the state budget for the entire tax period.
If the payer applies the proportional method, the amount allowed as an offset is determined based on the ratio of taxable turnover to the total taxable and non-taxable turnover. VAT not allowed as an offset is calculated as the difference between VAT eligible for offset, taking adjustments into account, and the amount allowed as an offset (Article 488 of the Tax Code of the Republic of Kazakhstan).
Under separate accounting, VAT on purchases used for taxable and non-taxable turnover is accounted for separately. For goods, work, and services used simultaneously for both types of turnover, the tax is allocated based on the ratio of taxable turnover to total turnover. VAT on purchases for taxable turnover is allowed as an offset subject to adjustment, while tax on purchases for non-taxable turnover is not allowed as an offset (Article 489 of the Tax Code of the Republic of Kazakhstan).
Thus, the amount excluding VAT on a sale, accrued tax, and VAT allowed as an offset serve different purposes. For the final calculation, the accountant compares turnover and input VAT data by applying the accounting procedure selected in accordance with the accounting policy.
How to Check the Calculation and Its Recording in 1C
After determining the amount excluding VAT, check how the software interprets the price in the document. If the price is set as including VAT, the software should separate the tax from the total amount. If the price is stated excluding VAT, the tax is charged in addition to the cost when the applicable rate is applied.
The check can conveniently be performed using the following control equation:
amount excluding VAT + VAT amount = final document amount.
In addition to checking the arithmetic, the document settings must be compared with the contract, source documents, and invoice. If the supplier specified the final cost including tax but the price excluding VAT is selected in 1C, the software will calculate tax in addition to the entered cost. If the opposite option is selected, the tax will be separated from the amount entered as the final amount.
The document serving as the basis for the offset is checked separately. The right of a recipient that is a VAT payer to claim an offset is linked to the availability of the required document and the use of the purchase for taxable sales turnover (Article 480 of the Tax Code of the Republic of Kazakhstan). As a general rule, the invoice itself is issued electronically; a paper form is permitted in expressly stipulated cases, including confirmed unavailability of the electronic invoice information system due to technical errors (Article 492 of the Tax Code of the Republic of Kazakhstan).
Before posting the document, the accountant should check:
- the price type—whether it includes or excludes VAT;
- the rate in the document lines;
- the cost amount and the separately calculated VAT amount;
- the document total and the amount of settlements;
- the consistency of the source documents, invoice, and accounting data.
The automatic calculation in the software applies the parameters specified by the user. Therefore, the rate, price type, and intended use of the purchase for offset purposes must be compared with the substance of the transaction and the executed documents.
Frequently Asked Questions
How do I find the amount excluding VAT if the amount including tax is known? — Divide the final amount by one plus the applicable VAT rate expressed as a decimal. At the standard rate of 16%, a coefficient of 1.16 is used. Then verify that the cost excluding tax plus the separated VAT equals the original amount.
How is the VAT amount calculated in Kazakhstan? — First determine the tax treatment of the transaction and the applicable rate. If the price is stated excluding tax, multiply it by the rate; if the price includes tax, divide the final cost by the coefficient and calculate VAT as the difference.
What VAT amount applies in 2026? — VAT is not a single fixed amount. For transactions subject to the standard rate in 2026, 16% applies, while the tax amount depends on the cost of the transaction. The tax treatment of the specific turnover is considered separately.
Is the amount excluding VAT equal to taxable turnover? — These indicators cannot automatically be considered identical in all cases. When calculating offsets, the Tax Code distinguishes between taxable and non-taxable turnover, while the proportional method uses their ratio (Article 488 of the Tax Code of the Republic of Kazakhstan).
Can all input VAT be claimed as an offset? — Not in all cases. The intended use of the purchase and the availability of the required document are taken into account for an offset (Article 480 of the Tax Code of the Republic of Kazakhstan). When purchases are used simultaneously for taxable and non-taxable turnover, the amount may be allocated using the proportional method or separate accounting (Articles 488, 489 of the Tax Code of the Republic of Kazakhstan).
Sources
- Tax Code of the Republic of Kazakhstan, Article 480 “Value-Added Tax Eligible for Offset.”
- Tax Code of the Republic of Kazakhstan, Article 488 “Procedure for Determining Amounts of Value-Added Tax Allowed as an Offset Using the Proportional Method.”
- Tax Code of the Republic of Kazakhstan, Article 489 “Procedure for Determining Amounts of Value-Added Tax Allowed as an Offset Through Separate Accounting.”
- Tax Code of the Republic of Kazakhstan, Article 492 “Requirements for the Issuance of Invoices by Value-Added Tax Payers.”