The Ministry of National Economy of Kazakhstan has clarified information regarding the adjustment of VAT credits for products resulting from the processing of agricultural raw materials.
"At one of the meetings of the Project Office on the Implementation of the Tax Code, the issue of adjusting the 80% VAT credit on products resulting from the processing of agricultural raw materials was raised, in accordance with subparagraph 7) of paragraph 2 and paragraph 5 of Article 484 of the Tax Code," the Ministry stated.
The Ministry of National Economy reports that, in accordance with the provisions of the Law of the Republic of Kazakhstan "On State Regulation of the Development of the Agro-Industrial Complex and Rural Areas," this adjustment does not apply to the export of products resulting from the processing of agricultural raw materials.
For example, when exporting flour, VAT is refunded in full in accordance with the generally established procedure, subject to compliance with tax legislation, since flour is classified as a processed product.
Therefore, the provisions of the new Tax Code retain the previously existing taxation procedure for processed products.
As reported, the topic of VAT refunds on agricultural exports has become the most discussed topic in recent days. Grain exporters have stated that they will no longer receive full VAT refunds from the budget. This will lead to lower prices for agricultural products domestically. For this reason, Kazakhstan has begun a mass halt in grain export trade.