Simplified Procedure for the Refund of Excess VAT

Simplified Procedure for the Refund of Excess VAT

The refund of excess VAT in Kazakhstan has traditionally involved tax audits, which often resulted in significant time expenditures and increased administrative burdens for taxpayers. One of the key measures aimed at improving tax administration has been the introduction and expansion of the simplified VAT refund procedure.

As part of Kazakhstan’s tax reform, the simplified procedure for refunding excess VAT has been significantly expanded. Previously, this procedure was available only to a limited number of taxpayers included in special lists and meeting a number of strict eligibility criteria. It is now accessible to a broader range of businesses.

Pursuant to Article 127 of the Tax Code of the Republic of Kazakhstan dated July 18, 2025, No. 214-VIII, the simplified VAT refund procedure provides for the refund of excess VAT based on the tax risk management system, without conducting a tax audit.

Who Is Eligible for the Simplified Procedure?

The simplified VAT refund procedure is available to VAT payers who:

Are subject to tax monitoring and have carried out zero-rated taxable supplies during the calendar year;

Have zero-rated taxable supplies accounting for at least 50% of their total taxable turnover for the relevant tax period.

Mandatory Conditions for the Refund

The excess VAT amount is eligible for refund provided that both of the following conditions are met simultaneously:

There are no outstanding tax compliance notices as of the date the refund claim is submitted;

Within the twelve months preceding the date of submission of the refund claim, a tax audit has confirmed an excess VAT amount eligible for refund.

Refund Timeline

Under the simplified procedure, the excess VAT amount must be refunded to the taxpayer within 15 business days following the date of submission of the refund claim.

This is a significant improvement: shortening the refund period directly enhances exporters’ working capital turnover and reduces the cost of doing business.