World Monitor Magazine, Business and Investments WM_march 2019_web - Page 17

DESTINATION KAZAKHSTAN entitled to receive a preliminary explana- tion from the authorized body regarding tax liability arising in relation to planned transactions (operations) with a guaran- tee of non-application of penalties when the authorized body changes. payers of VAT control accounts. At the same time, such a return will be carried out in stages – by approval (in agree- ment with the authorized bodies) of the regulatory act on the list of goods until the end of 2018. In terms of VAT At the same time, on November 6, 2018, we (in the Mazhilis) received for consid- eration a draft Law of the Republic of Kazakhstan: “On introducing amend- ments and addenda to some legislative acts of the Republic of Kazakhstan on the development of the business envi- ronment and trading activities”. From January 1, 2019, electronic in- voices will be required to issue the following: • VAT payers. • taxpayers who sell imported goods. • freight forwarders and commissioners who are not VAT payers, in cases pro- vided for in Articles 415 and 416 of the Tax Code. ensures the accelerated return of VAT to final consumers of goods (works and services). In terms of VAT refunds The general model of VAT accounting, using the VAT control accounts, pro- from the budget Since January 2019, a simplified proce- dure provides VAT refunds for taxpayers registered to receive electronic invoices through the information system and who apply for a control VAT account on a voluntary basis (a separate bank ac- count used to separately account for the movement of money in VAT amounts). A separate transactions mode will be applied to such bank accounts by limit- ing the type of transactions performed, i.e. crediting VAT amounts to the Coun- terparty VAT Control Account for mutual settlements between buyers and suppli- ers for the supply of goods, as well as paying VAT. By implementing Blockchain technol- ogy, separate accounting monitors the movement of money transactions for goods and VAT amounts. The proposed solution’s main principle is to monitor the financial flows of VAT and the transparency of taxpayers ful- filling tax obligations in real time, which vides that STBs, government revenue agencies, treasury bodies, etc. who in- teract making non-cash payments for transactions between taxpayers will be transferred to the Blockchain sys- tem fully. This system will allow you to fully see the current situation on tax li- abilities and subsequently implement a guaranteed return of VAT from the budget to the final consumer of goods, works and services. For exporters applying VAT control ac- counts, the timing of VAT returns on the results of inspections will be reduced from 55 to 15 working days, while VAT will be refunded without applying a risk management system (hereinafter, RMS). The Order of the Ministry of Fi- nance of the RK includes corresponding changes in applying the RMS to confirm the reliability of excess VAT amounts and risk criteria, which "will be made before the end of this year”. In addition, the Tax Code on January 1, 2019 provides the first time to return VAT on domestic sales when using VAT This draft law was developed on the in- structions of the Head of State, given at the opening of the fourth session of the Parliament of the sixth convocation, on introducing a new package of legis- lative changes by the Government for the further development of the business environment. The bill can be found on the website of the Ministry of National Economy. Now, the Tax Code within the frame- work of this draft law includes some planned changes and additions. 1. When synchronizing the norms of the new Tax Code with the draft code ‘On Subsoil Use and Subsoil Use’, the list of common mineral resources was revised, however, tax rates remained the same, and the tax burden on subsoil users in- creased dramatically. In this regard, within the framework of the draft law, the mineral extraction tax rates on common minerals in terms of sedimentary rocks were reduced from 0.04 MCI to 0.015 MCI per unit volume of the extracted mineral. The proposed amendments will keep the tax burden at the 2017 level. supported by EUROBAK 13