The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan clarifies the procedure for applying the value-added tax (VAT) offset method when importing goods from member states of the Eurasian Economic Union (EAEU).
Pursuant to Article 509 of the Tax Code, the credit method may be applied by VAT payers who meet the requirements of tax legislation.
When applying the credit method, the amount of VAT on imported goods is simultaneously reported in the VAT return as both tax charged and as an amount eligible for credit. Provided all established conditions are met, no actual VAT payment is made to the budget upon the importation of goods.
The offset method applies to goods that:
- are not intended for further sale or transfer under an international financial lease;
- are imported for transfer under a financial lease (excluding international financial leases);
- are used in the production of agricultural machinery included in the approved list.
The list of goods to which the set-off method applies, as well as the rules for compiling it, are approved by Decree No. 1199 of the Government of the Republic of Kazakhstan dated December 31, 2025.
Along with the declaration for the import of goods and the payment of indirect taxes, it is necessary to submit the documents specified in Article 530, Paragraph 2 of the Tax Code, as well as documents confirming the technical and commercial characteristics of the goods required for their classification under the EAEU Foreign Economic Activity Commodity Nomenclature (TN VED).
Goods imported using the offset method must be used for their intended purpose for 5 years for most imported goods and 18 months for poultry.
If, during this period, the goods are sold, transferred under an international financial lease, or used in violation of the established conditions, VAT is payable to the budget. In such cases, a penalty is assessed from the date set for the payment of VAT on the import of goods.
The State Revenue Committee recommends that taxpayers, before applying the offset method, ensure that the imported goods are included in the approved list, are correctly classified under the EAEU Foreign Economic Activity Commodity Nomenclature (TN VED), and will be used for their intended purpose within the specified period.
