At the third meeting of the Project Office for the implementation of the new Tax Code, chaired by Deputy Prime Minister – Minister of National Economy Serik Zhumangarin, issues related to the practical application of new tax regulations concerning medicines and medical devices were reviewed.
As noted by Deputy Chairman of the National Chamber of Entrepreneurs “Atameken” National Chamber of Entrepreneurs Atameken, Timur Zharkenov, legal uncertainty has arisen in practice within the subordinate regulations of sectoral government agencies. In particular, the issues concern the import and retail sale through pharmacy chains of medicines included in the lists under the Guaranteed Volume of Free Medical Care (GVFMC), the Mandatory Social Health Insurance (MSHI), as well as medicines for orphan and socially significant diseases. A separate issue raised was the formation of maximum prices for medicines, including whether VAT should be included.
According to Timur Zharkenov, during customs clearance of imported medicines, customs authorities require confirmation of the intended use for all medicines included in the specified lists. However, such a requirement represents an expansive interpretation of the current rules and is not предусмотрено for all categories of imported medicines.
Deputy Chairman of the State Revenue Committee Zhanybek Nurzhanov explained that mandatory requirements for the import of all medicines include a license for pharmaceutical or medical activity, supply contracts under the GVFMC/MSHI framework for medicines supplied under government procurement, and supplier obligations regarding the intended use of goods.
For the import of registered medicines, state registration in the Republic of Kazakhstan is required; for unregistered medicines, a permit issued by the Ministry of Health is required. Confirmation of intended use is required exclusively when importing pharmaceutical substances and bulk products used for production within Kazakhstan.
Following the discussion, the issue was resolved at the Project Office meeting. Amendments will be introduced to the current rules, and in the near future, the official position on the import of medicines will be communicated to territorial divisions of the customs authorities for practical application.
The second block of issues concerned VAT exemption for medicines used to treat orphan and socially significant diseases. Currently, pharmacies are refusing to purchase such medicines from suppliers because suppliers are applying 5% and 16% VAT rates, despite existing rules providing VAT exemption not only for imports but also for wholesale and retail sales. This provision is aimed at ensuring the availability of socially significant medicines in the broad retail market.
As a result of the discussion, it was decided that the Committee for Medical and Pharmaceutical Control of the Ministry of Health, together with the State Revenue Committee, will promptly develop a unified position and communicate it to the pharmaceutical community.
A separate issue discussed was the approval of maximum prices for medicines and medical devices — whether VAT should be included or excluded. It was noted that taxpayers have the right to charge VAT on top of the maximum price, as it represents the upper permissible limit rather than the actual sale price.
The Ministry of Health and the State Revenue Committee have been instructed to develop a unified solution on this matter in the near future and communicate it to the business community.
Representatives of the State Revenue Committee also raised a number of additional issues related to the application of VAT rules in the healthcare sector. All of them were reviewed at the Project Office meeting and will soon be published on the Committee’s official resources to inform the business community.
It was noted that over the past week, 16,100 inquiries were received by the tax authorities, the Ministry of National Economy, and the National Chamber of Entrepreneurs “Atameken,” which is 3,400 fewer than the previous week. The majority of inquiries — around 16,000 — were received through the communication channels of the State Revenue Committee and concerned issues of tax administration.