The Committee for State Revenues of the Ministry of Finance of the Republic of Kazakhstan held a meeting with Alibaba International Digital Commerce Group. According to the press service of the Committee, during the meeting, the parties discussed issues related to the development of international taxation in the digital economy, as well as recent changes in legislation and tax administration in the field of e-commerce in Kazakhstan.
“As a result of the meeting, a decision was made to conditionally register Alibaba International Digital Commerce Group as a VAT payer,” the Committee's statement said.
Alibaba International Digital Commerce Group is a subsidiary of Alibaba Group. It includes the popular marketplace Aliexpress, as well as the online platform for selling goods Lazada, which is used in Southeast Asia.
As of January 1, 2022, provisions of the Tax Code regarding the obligations of foreign internet companies to pay VAT on goods sold and services rendered to individuals in Kazakhstan in electronic form came into effect. Consequently, a foreign company through which electronic trade in goods and the provision of online services to individuals is conducted must undergo conditional registration with the tax authority. For this, the company must send a letter to the Committee of the Ministry of Finance of the Republic of Kazakhstan once, providing the necessary company details. The turnover of this company is subject to VAT at a rate of 12%.
By the end of 2023, 60 foreign companies had undergone conditional registration in Kazakhstan, and the total amount of taxes paid by them reached 34.8 billion tenge.