In 2026, an individual entrepreneur or LLP pays VAT on taxable transactions where the corresponding obligation exists; the current VAT rate is 16%. A separate transitional rule applies to claims for the refund of excess VAT submitted before 1 January 2026: they are reviewed in accordance with the procedure and within the time limits stipulated by the Tax Code dated 25 December 2017 (Article 833 of the Tax Code of the Republic of Kazakhstan).
Who Pays VAT
A business’s legal form alone does not provide a complete answer to the VAT question. When working with an individual entrepreneur or LLP, the accountant must establish the tax status of the entity or entrepreneur as at the transaction date, determine the substance of the transaction, and apply the VAT rules in effect for the relevant tax period.
A practical review usually covers several questions:
- what tax status the taxpayer had as at the transaction date;
- the date from which this status applies;
- how the transaction under review is classified for VAT purposes;
- what rate applies to the transaction in 2026;
- whether the source documents correspond to the actual terms of the transaction;
- in which tax period the transaction must be recorded in the accounts and tax returns.
Therefore, the answer to the question “who pays VAT” is not determined solely by the type of business entity. Individual entrepreneurs and LLPs may carry out transactions that differ in substance, so the accountant analyses each situation with regard to the taxpayer’s status, the transaction date, and the documents issued.
The current VAT rate of 16% applies when calculating tax for 2026. It should be used only after determining the taxable amount and classifying the transaction under the rules applicable to the relevant tax period. Replacing this analysis with a conclusion based solely on the business form may result in an incorrect calculation of the liability.
A separate procedure is provided for tax applications and claims for the refund of excess VAT submitted before 1 January 2026. Such applications and claims are reviewed under the rules and within the time limits established by the Tax Code of the Republic of Kazakhstan dated 25 December 2017 (Article 833 of the Tax Code of the Republic of Kazakhstan). The date on which the claim was submitted is therefore important for the refund procedure.
Does an Individual Entrepreneur Pay VAT?
An individual entrepreneur pays VAT at the rate of 16% when the relevant tax liability arises for a specific transaction in 2026. The mere fact that an individual is registered as an individual entrepreneur does not replace an analysis of their tax status, the terms of the transaction, and the period in which the transaction took place.
Before preparing the documents, the accountant should compare the information about the individual entrepreneur with the agreement and the actual substance of the transaction. The name of the tax, the rate, the value excluding tax, the VAT amount, and the total value must be stated consistently and without discrepancies across the related documents.
If the entrepreneur’s status has changed, the date from which the relevant change applies is significant. Documents and accounting entries for different periods cannot be assessed solely on the basis of the individual entrepreneur’s current status: the circumstances existing on the date of each transaction must be taken into account.
VAT on sales must also be distinguished from VAT on purchases. The presence of a tax amount in a supplier’s document does not in itself replace verification of the transaction and documents. The accountant compares the supplier, the buyer, the subject matter of the agreement, the transaction date, the value, the rate, and the tax amount across all documents relating to the transaction.
If a refund of excess VAT is being considered under a claim submitted before 1 January 2026, the transitional provision applies. Such a claim is reviewed according to the procedure and within the time limits of the previous Tax Code dated 25 December 2017 (Article 833 of the Tax Code of the Republic of Kazakhstan). This rule applies specifically to the procedure for reviewing previously submitted applications and claims.
Does an Individual Entrepreneur Under the Simplified Tax Regime Pay VAT?
To answer this question, the tax regime applied by the entrepreneur and their VAT obligations must be considered separately. A conclusion based solely on the fact that the individual entrepreneur uses the simplified tax regime does not reveal the substance of a specific transaction or determine how it should be recorded.
The following procedure is useful for an individual entrepreneur under the simplified tax regime:
- Establish the tax regime in effect as at the transaction date.
- Check the individual entrepreneur’s tax status as at the same date.
- Determine the substance of the transaction and the period in which it took place.
- Compare the terms of the agreement with the source documents.
- Check the calculation of the value and VAT using the 16% rate in effect in 2026.
- Reconcile the document data with the accounting entries and tax returns.
The tax regime, VAT status, and classification of the transaction are separate elements of the review. They should be analysed consistently to ensure that the tax amount in the documents corresponds to the actual transaction and its recognition in the accounts.
If the documents relate to several tax periods, it is important for the accountant not to mix the information for those periods. The agreement date, transaction date, document issue date, and reporting period must be compared with one another.
What the Accountant Should Check in the Documents and Accounts
When reviewing documents, amounts should be compared for each transaction. If the value or VAT differs between the agreement, source document, and accounting system, the source of the discrepancy must first be established: quantity, price, rate, rounding, date, or a data transfer error.
The provision on whether VAT is included in the price requires particular attention. The agreement and source document must make it clear whether the price is stated inclusive or exclusive of VAT. At the 16% rate, the calculation must be performed consistently across all related documents, without changing the method used to determine the price within a single transaction unless there is documentary justification.
The accountant must also distinguish the current VAT calculation from the procedure for refunding excess VAT. For claims submitted before 1 January 2026, the review procedure and time limits under the Tax Code dated 25 December 2017 (Article 833 of the Tax Code of the Republic of Kazakhstan) remain in effect. In this situation, the date on which the claim was submitted determines the applicable procedural rules.
Practical checklist for the accountant:
- the tax status of the individual entrepreneur or LLP has been checked as at the transaction date;
- the tax period has been determined based on the circumstances of the specific transaction;
- the agreement and source documents contain consistent information;
- it is clear whether the contractual price includes VAT;
- the current rate of 16% has been applied to the calculation for 2026;
- the value and tax amounts match across the related documents;
- the names of the parties and the subject matter of the transaction are stated without discrepancies;
- the accounting data corresponds to the documents issued;
- the submission date has been taken into account for a previously submitted refund claim.
If the discrepancy remains, the amount should not be corrected until its cause has been established. The agreement, source documents, calculation of the taxable amount, applied rate, and accounting entries are reconciled in sequence. The correction must eliminate the identified discrepancy rather than merely change the final amount.
When reviewing transactions spanning different periods, it is important to distinguish the tax calculation rules from the rules governing the review of an application for a refund of excess VAT. Article 833 of the Tax Code of the Republic of Kazakhstan governs the latter and applies to applications and claims submitted before 1 January 2026; it does not establish the general VAT payer status of an individual entrepreneur or LLP.
Frequently Asked Questions
Who pays VAT in Kazakhstan? — An individual entrepreneur or LLP pays VAT when their tax status and a specific transaction give rise to the corresponding obligation. In 2026, the current VAT rate is 16%.
Does an individual entrepreneur pay VAT? — Yes, if a VAT obligation arises for the individual entrepreneur in relation to a specific transaction. To answer this question, the accountant compares the entrepreneur’s status, the date and substance of the transaction, and the documents issued.
Does an individual entrepreneur under the simplified tax regime pay VAT? — The mere fact that the simplified tax regime is applied does not provide a complete answer. The tax regime, the entrepreneur’s status, and the specific transaction must be considered separately.
What VAT rate applies in 2026? — The current VAT rate in Kazakhstan in 2026 is 16%. Before making the calculation, the accountant determines whether the specific transaction is taxable at this rate.
What is important when refunding excess VAT? — A transitional rule applies to claims submitted before 1 January 2026: they are reviewed in accordance with the procedure and within the time limits stipulated by the Tax Code dated 25 December 2017 (Article 833 of the Tax Code of the Republic of Kazakhstan).
Does Article 833 of the Tax Code of the Republic of Kazakhstan apply to the calculation of VAT on all transactions in 2026? — No. It governs the procedure for reviewing tax applications and claims for the refund of excess VAT that were submitted before 1 January 2026.
What should be done if the VAT amounts in the documents do not match? — The agreement, source document, transaction date, value, rate, and tax calculation should be compared. A correction is documented after the specific cause of the discrepancy has been identified.
Sources
Tax Code of the Republic of Kazakhstan, Article 833: transitional provisions on the review of tax applications and claims for the refund of excess VAT submitted before 1 January 2026.