Kazakhstan Requires Foreign Firms to Collect VAT Digital 2026

Kazakhstan’s State Revenue Department, led by Edil Azimshayyk, announced that from 1 January 2026 foreign companies operating in the country’s digital market must collect VAT through an electronic system. The rule applies to all digital transactions conducted in Kazakhstan. Registrations notices will be issued to the foreign operators.

Foreign firms must submit a confirmation letter with company details to the tax authority within one month after receiving their first payment from a Kazakh buyer, and once registered they are required to remit VAT each month. The VAT rate for foreign platforms rises from 12% to 16% beginning in 2026. Non‑registration can lead to the blocking of online platform access.

The measure follows a rise in digital sales that reached US$1.3 billion in 2023, representing about 20% of Kazakhstan’s total digital transactions. The government aims to increase e‑commerce’s share of total retail trade to 18.5% by 2029 and 20% by 2030. The policy is intended to broaden the tax base and boost state revenue.