A refund of EMPC via eGov cannot be processed under the VAT refund rules: EMPC is not VAT, so the procedures and deadlines set out in Articles 126–128 of the Tax Code of the Republic of Kazakhstan do not apply here. First, it is necessary to determine the grounds for the refund, the payer and the payment recipient, and then check the current electronic service and the list of documents as of the application date. The availability of a separate service specifically for refunding EMPC via eGov and the procedure for using it need to be verified.
In this article, a tax refund is considered primarily as a refund from the budget of the confirmed VAT excess amount—the difference arising when VAT attributable to offset exceeds the assessed VAT. The tax excess amount is refundable to payers selling goods, performing work or rendering services subject to the zero rate, as well as to payers operating under a subsoil use contract, except for contracts for the exploration and/or extraction of commonly occurring minerals, groundwater and therapeutic mud. The refund claim is reported in the VAT return. A refund may be obtained under the simplified procedure or based on the results of a thematic tax audit.
Who is entitled to claim a tax refund
Article 126 of the Tax Code of the Republic of Kazakhstan distinguishes between payers based on the nature of sales subject to the zero rate. In the case of regular sales, the tax excess amount is refundable. In the case of irregular sales, the refundable amount is the portion of VAT offset on goods, work and services used for zero-rated turnover.
Sales are deemed regular if both of the following conditions are met:
- transactions subject to the zero rate are carried out during three consecutive tax periods;
- in each such period, the relevant turnover accounts for at least 70% of the total taxable sales turnover.
A separate calculation applies to international transportation: it takes into account the share of the physical volume of international transportation in the total transportation volume and the amount of VAT offset for the period for which the claim was filed.
The accountant must distinguish between total taxable turnover, zero-rated turnover and the amount of VAT accepted for offset. The documents and registers must make it possible to link the claimed excess to specific transactions.
How to calculate the VAT excess amount
The basic calculation principle is to subtract the assessed VAT from the amount of VAT attributable to offset. For example, if 1 200 000 tenge is attributable to offset according to the return and the assessed VAT amounts to 900 000 tenge, the calculated excess is 300 000 tenge:
1 200 000 − 900 000 = 300 000 tenge.
This is not an amount automatically guaranteed for payment. The refund depends on the grounds, the selected procedure and the amount confirmed by the tax authority.
The VAT rate from 2026 is 16%. However, multiplying the purchase price by the rate is not sufficient to calculate the refund: the figures from the return must be used, and the excess amount related to the relevant turnover must be determined. In the case of irregular sales, only the portion of tax offset on purchases used for zero-rated turnover is taken into account.
How VAT is refunded from the budget and what deadlines apply
Under Article 126, the payer chooses either the simplified refund under Article 127 or a refund based on the results of a thematic tax audit under Article 128. If only part of the excess is refunded under the simplified procedure, the remaining part may be claimed based on the results of a thematic audit.
The simplified procedure is based on the tax risk management system and is conducted without a tax audit. It may be used by:
- payers subject to tax monitoring that carried out zero-rated turnover during the calendar year;
- payers whose zero-rated turnover accounts for at least 50% of the total taxable turnover for the tax period.
Checks are also made to ensure that there is no unfulfilled notice as of the claim submission date and that there is an excess amount confirmed for refund based on the results of a tax audit during the twelve months preceding the claim submission date.
Under the simplified procedure, the refund is made within fifteen business days following the day on which the claim is submitted. The tax authority sends a notice of the excess amount confirmed for refund.
The amount not refunded under the simplified procedure to a payer making zero-rated sales is refunded based on the results of a thematic audit. The confirmed amount is refundable within fifty-five business days following the day on which the deadline for submitting the return containing the claim expires. The amount based on the conclusion attached to the audit report is refunded within ten business days following the day on which the conclusion is delivered.
How to process a VAT refund: step-by-step review
- Identify zero-rated transactions for the relevant tax periods.
- Compare them with the total taxable turnover and calculate the share of such transactions.
- Determine whether the sales are regular or irregular under Article 126.
- Check the amount of VAT offset and its connection with zero-rated turnover.
- Check compliance with the conditions of the simplified procedure, the status of notices and the history of previously confirmed refunds.
- Select the procedure and report the refund claim in the VAT return.
- Reconcile the claimed amount with the notice, audit report or conclusion and monitor the applicable deadline.
If part of the amount is not confirmed or is not covered by the simplified procedure, the confirmed and remaining portions must be accounted for separately. The balance may be claimed following a thematic tax audit.
Refund of money from the tax account used to issue electronic invoices
A positive balance is refunded to the VAT payer within the payer’s own funds deposited during the reporting month or funds not refunded as of the beginning of the month, but not exceeding the current VAT balance. The money is transferred to the current account specified in the application. Amounts used to issue electronic invoices between the calculation date and the application submission date are not refundable.
If the application is not submitted within three business days after the informational message is sent, the money is used in the following month to enable the issuance of electronic invoices. This refund of a positive balance should be distinguished from a refund of the VAT excess from the budget under Articles 126–128.
VAT refunds for purchases abroad and at the border
The procedure described is not a VAT refund to a tourist for a purchase abroad and does not confirm the right to receive money at the border. The availability of such a refund depends on the rules of the country of purchase and the specific processing program. A refund of customs VAT also cannot automatically be processed under Articles 126–128: the type of payment and the separate legal grounds must first be determined.
Refund of EMPC via eGov: what to check
The query “refund of EMPC via eGov” does not concern a refund of a VAT excess. The VAT rate, a claim from a VAT return or the deadlines of fifteen and fifty-five business days cannot be applied to EMPC.
Before applying, it is recommended to perform the following checks:
- Determine exactly which payment is to be refunded and the period for which it was transferred.
- Determine the grounds for the refund and the status of the person applying for it.
- Verify the payment documents and information about the sender and recipient of the payment.
- Check, as of the application date, whether a separate eGov service is available for this situation and which documents must be attached.
- Do not use the VAT refund procedure if the application concerns EMPC.
A refund of EMPC via eGov cannot be promised without established grounds and up-to-date information about the electronic service. The specific application route, processing time and list of documents need to be verified.
Refund of MPC, CSHI contributions and IIT
MPC and CSHI contributions, like EMPC, are not VAT. Therefore, the conditions for refunding a VAT excess described in the article do not apply to them. For each payment, the reason for the application, the period, the payer, the recipient and the separate refund procedure must first be determined.
An IIT refund also requires separate legal grounds. The mere fact that IIT was withheld or paid does not mean that the entire amount is refundable. Before applying, the calculation, payment documents and the current procedure for the specific situation must be checked.
What does the query “AWG return” mean
An AWG is a document, not a type of tax, so a tax refund under an AWG and an action involving the AWG itself are different tasks. The query “AWG return” may refer to withdrawal, correction or another action involving the document. The required action and its grounds should be clarified first; the VAT excess refund rules do not in themselves govern such an operation.
Queries about tax refunds when purchasing an apartment, on mortgage interest, property tax, as well as for individual entrepreneurs, also require the type of tax, the payer’s status and the specific grounds to be determined. Articles 126–128 do not in themselves establish such refunds.
Frequently asked questions
Can a VAT refund be processed online? — The claim is reported in the VAT return. The specific submission method and available electronic services should be checked as of the filing date.
How long does a simplified VAT refund take? — The refund is made within fifteen business days following the day on which the claim is submitted.
Does the state refund all input VAT? — Not automatically. The confirmed excess amount is refunded within the applicable grounds; in the case of irregular sales, the relevant portion of VAT on purchases used for zero-rated turnover is refunded.
Can VAT on purchases abroad be refunded at the border? — Articles 126–128 govern a different procedure. A refund for a purchase abroad is determined by the rules of the country of purchase and the relevant program.
Can the VAT refund procedure be applied to MPC, EMPC or CSHI contributions? — No. These are different types of payments for which the grounds and refund procedure must be determined separately.