Deputies from the Government demanded to protect the flour milling business. A corresponding request with proposals, including simplifying VAT refunds, was sent directly to the Prime Minister of Kazakhstan. As Olzhas Bektenov said in his response to deputies, in March the Ministry of Finance introduced changes to the Rules for the return of excess VAT. The country has also launched a pilot project for simplified VAT refunds to grain market participants. Other measures are being developed, reports the APK News agency.
Today, the current tax legislation establishes a simplified procedure for VAT refund without conducting a tax audit within 15 working days for the following taxpayers:
engaged in tax monitoring for at least twelve consecutive months;
manufacturers of goods of their own production, the list of which is approved by the authorized body in the field of regulation of trade activities;
exporters of raw materials upon conversion of at least 50% of foreign exchange earnings received during the tax period.
In addition, as reported in the response to the request, as part of the implementation of the instructions of the Head of State regarding simplification of the VAT refund procedure, on March 13 of this year, the Ministry of Finance introduced changes to the Rules for the return of excess VAT.
The changes made will simplify the VAT refund procedure, in particular, it will reduce controversial situations for domestic producers.
Also, to simplify the VAT refund procedure and protect the interests of bona fide taxpayers by eliminating “gray” schemes in grain circulation, a pilot project is currently underway to simplify the refund of excess VAT to grain market participants.
The pilot project implements traceability of grain movement “from field to border” and provides for a simplified VAT refund without a tax audit to two grain market participants who have concluded a Memorandum in the field of circulation of grain and grain products.
Today, within the framework of the new Tax Code of the Ministry of Finance, an analytical system (e-Tamga) for VAT administration is being developed, which is aimed at prompt VAT refunds and reducing control activities.
In addition, at the site of the working group for the development of the new Tax Code, the possibilities of reducing the period for VAT refunds from 75 to 55 working days and applying a simplified procedure for VAT refunds to all categories of taxpayers applying the zero rate are being explored.
Thus, work to simplify the VAT refund procedure is carried out on an ongoing basis and the approaches developed will be reflected in the draft of the new Tax Code and the rules for VAT refund.