Kazakhstan has ratified the Protocol on amendments to the Agreement of the Eurasian Economic Union dated 29 May 2014 in part of indirect taxes collection upon digital services rendering (hereinafter – the 'Protocol').
The Protocol will come into effect as soon as the last EAEU state notifies the depositary on the interstate procedures compliance.
What is it for?
The Protocol offers a separate procedure for indirect taxes collection in the EAEU. This procedure differs from the current procedure on collection of value added tax on digital services (hereinafter – 'VAT on digital services') in Kazakhstan.
In comparison to the current broad definition of digital services, the Protocol provides for an exhaustive list of such services approved by the EAEU Council.
This list excludes the following types of services:
- sale of goods, works, services through the information and telecommunication network in case these goods, works, services are supplied without the use of such network;
- sale of software/data bases on a tangible medium;
- granting of access to the information and telecommunication network.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.