Starting January 1, 2026, a new Tax Code No. 214-VIII comes into force in Kazakhstan, raising the base VAT rate from 12% to 16%. Only registered taxpayers have the right to offset VAT, provided they have supporting documents with a separately stated VAT amount and correct identification data of the parties. It is critically important to mark VAT as recognized for offset in the ESF information system before submitting the VAT return (Form 300.00), otherwise the VAT amount cannot be reflected in the offset portion of the return.
Key VAT parameters in 2026
| Parameter | Value in 2026 | Legal basis |
|---|---|---|
| Base VAT rate | 16% | Tax Code No. 214-VIII |
| Monthly Calculation Index (MCI) | 4,325 tenge | Law on the Republican Budget |
| Mandatory registration threshold | 10,000 MCI (43,250,000 tenge) | Tax Code No. 214-VIII |
| Cash settlement limit for VAT offset | 1,000 MCI (4,325,000 tenge) | Article 482 |
⚠️ Attention: The numbering of articles in the new Code has been completely changed. References to old articles (369, 422, 568) are no longer relevant. All offset rules are now governed by the updated block of articles starting from Article 480.
Conditions for accepting VAT for offset (Article 480)
According to Article 480 of the new Code, only registered taxpayers have the right to offset VAT, subject to the following conditions:
- Goods, works or services are used (or planned to be used) exclusively for taxable turnover purposes
- Availability of supporting documents with a separately stated VAT amount and correct identification data (BIN/IIN) of the parties
- Expenses for services provided to an individual are recognized as travel compensation under Article 260 and deducted
Single-use principle (paragraph 9, Article 480): If several grounds arise for offset (for example, both an electronic ticket and a fiscal receipt are available), the offset is made strictly once, based on the earliest ground. This is critically important to prevent "double offset" and subsequent penalties.
Supporting documents for VAT offset
| Situation | Supporting document |
|---|---|
| Purchase of goods, works, services in the RK | ESF or paper invoice |
| Travel (bus, train) | Travel ticket / electronic travel document |
| Air travel | Document confirming the fact of travel |
| Periodical press / media | Invoice according to paragraph 6, Article 493 |
| Import of goods | Customs declaration or import declaration |
| Non-resident services | ESF + document confirming VAT payment to the budget |
| Release from state material reserve | Invoice from the authorized agency |
| Registration (inventory balances) | Tax register according to paragraph 4, Article 205 |
Mandatory marking in the ESF information system
A new strict taxpayer obligation is being introduced. A special mark recognizing VAT as offsettable must be placed in the ESF information system.
This action must be performed strictly before submitting the VAT return (Form 300.00) in which this amount is accounted for. Without this proactive mark in the system, the VAT amount cannot be reflected in the offset portion of the return, which effectively deprives the company of the right to offset in the current period.
Prohibitions on VAT offset (Article 482)
Article 482 defines an exhaustive list of cases where VAT offset is prohibited:
- Defects in invoices: Errors or absence of BIN/IIN of the parties, date, document number, names of goods/services, or the amount of taxable turnover
- Registration errors: Invoices without an electronic digital signature or issued on paper in cases where the law (Article 492) requires exclusively electronic format
- Cash settlements: If the transaction amount (including VAT) exceeds 1,000 MCI (4,325,000 tenge), VAT is not accepted for offset, regardless of the number of payments made for the transaction
- Specific funding sources: Purchases made using funds from a liquidation fund in a special deposit (Article 301) or from targeted budget contributions of autonomous education organizations (Article 15)
- Intermediary services: Offset is prohibited for commission agents (for goods intended for the principal) and for forwarders (for carrier services purchased for the client)
- Non-taxable turnover: Separate accounting is required under Articles 487 and 489
Import using the offset method: Appendix 300.04
For certain categories of goods (equipment, machinery, livestock), the mechanism of paying VAT using the offset method is retained (Articles 427–428). These transactions are reflected in Appendix 300.04.
Categories of goods (I–X) for the offset method:
- Equipment
- Agricultural machinery
- Cargo vehicles
- Airplanes and helicopters
- Locomotives and railcars
- Sea vessels
- Spare parts
- Pesticides
- Breeding animals and insemination equipment
- Live cattle
Instructions for transferring data to Form 300.00:
- Taxable import amount (line 300.04.001 A) → to line 300.00.029 A
- VAT amount (line 300.04.001 B) → simultaneously to lines 300.00.011 and 300.00.029 B
Practical tips for setting up your accounting system for 2026
- Updating reference data: Set the 16% rate in all registers from 01.01.2026
- Limit control: Set up a block or notification when attempting to post cash payments exceeding 4,325,000 tenge for a single transaction
- Integration with the ESF IS: Verify the automation of placing the "offset recognition mark" before generating reports
- Separate accounting (residential construction): If a company carries out residential building construction (mixed turnover), VAT on goods and services must be accounted for in a separate tax register until the facility is accepted for operation, according to Article 482
- Document reference book: Add new types of supporting documents (tickets, tax registers for balances) for correct offset generation
Key takeaways for accountants
The transition to the new 2026 tax model requires three main actions from the accountant:
- Shift focus to the 16% rate: All calculations and contracts from 2026 must take the new rate into account
- Digital discipline: Placing the mark in the ESF IS becomes as important a step as issuing the invoice itself
- Learning the new structure: It is necessary to understand the new articles — 480 (offset), 482 (offset denial), 427–428 (import)
Important note: At the moment, the following are absent from the regulatory database and require clarification as additional subordinate acts are released: specific deadlines for refunding excess VAT from the budget, the amounts of fines under the Code of Administrative Offenses for 2026 violations, and full lists of goods taxed at the zero rate.
Frequently Asked Questions
What new VAT rate comes into effect on January 1, 2026?
The base VAT rate is raised from 12% to 16% under the new Tax Code No. 214-VIII.
Who has the right to offset VAT in 2026?
Only registered taxpayers have the right to offset VAT, provided they have supporting documents with a separately stated VAT amount and correct identification data (BIN/IIN) of the parties.
What happens if I do not mark VAT as recognized for offset in the ESF IS?
Without placing the mark in the ESF system, the VAT amount cannot be reflected in the offset portion of the VAT return (Form 300.00), which effectively deprives the company of the right to offset in the current period.
What is the cash settlement limit set for VAT offset?
If the transaction amount (including VAT) exceeds 1,000 MCI (4,325,000 tenge), VAT is not accepted for offset, regardless of the number of payments made for the transaction.
What categories of goods can be imported using the offset method?
The following can be imported using the offset method: equipment, agricultural machinery, cargo vehicles, airplanes and helicopters, locomotives and railcars, sea vessels, spare parts, pesticides, breeding animals and insemination equipment, live cattle.