As of January 1, 2026, significant amendments to the Tax Code of the Republic of Kazakhstan will come into force, fundamentally altering the approach to administering the Value Added Tax (VAT). The changes will affect the tax rates, registration thresholds, and exemption conditions, requiring most companies to revise their financial models and accounting processes. Acsour experts have analyzed the key innovations to help businesses prepare for the new rules in advance.
Changes in the VAT System from 2026
In accordance with the explanations of the tax authorities, the reform is aimed at simplifying administration and increasing the efficiency of the tax system.
1.Change in the Standard Rate and Introduction of Reduced Rates:
The standard VAT rate will be increased to 16%.
Preferential rates are being introduced for socially significant sectors:
5% – for medicinal products and medical services (from 2026).
10% – for medicinal products and medical services (from 2027), as well as for domestic periodical printed publications.
2.Reduction of the Threshold for Mandatory Registration as a VAT Payer: one of the most significant points for business is the reduction of the annual turnover threshold for mandatory VAT registration from 20,000 MCI to 10,000 MCI. This means that VAT obligations will arise for a wider range of medium-sized businesses.
3.Special Conditions for the Agro-Industrial Complex:
Peasant (farm) enterprises retain their exemption from VAT payer status.
For legal entities – agricultural producers, the share of the additional VAT amount eligible for credit is increased from 70% to 80%.
4.Abolition of the Exemption for Housing Transactions: the VAT exemption for the sale and lease of residential premises is being abolished. This measure is aimed at simplifying the tax accounting for developers and management companies, as it eliminates the need for complex allocation of "input" VAT between the residential and non-residential parts of buildings.
5.Adjustment of Reporting Deadlines: the period for submitting VAT tax returns is being changed. The declaration can be filed from the 15th of the month following the reporting quarter until the 15th of the second month. This provides taxpayers with a more flexible window for preparing and submitting the report.
Acsour Recommends: Start Preparing Today
The upcoming changes are comprehensive and will require companies not only to recalculate their tax burden but also to adapt their contractual policies, pricing strategies, and internal accounting procedures.
We offer a range of services for a smooth transition to the new rules:
Tax Consulting and Audit: assessment of the impact of the changes on your company, calculation of the new tax burden, and analysis of current operations for compliance with the new requirements.
VAT Registration/Deregistration Support: assistance with registration due to the lowered threshold or adjustment of status.
Adaptation of Accounting Policies and Document Flow: aligning internal procedures with the new rules, including work with preferential rates and abolished exemptions.
Do not postpone strategic planning until the last minute. A timely assessment of risks and opportunities will allow you to minimize financial losses and operational disruptions from the first day the new norms take effect.
Submit a request to receive a detailed consultation on planning the transition to the new VAT rules. Our experts will help you develop a clear plan of action.