LETTER OF THE TAX COMMITTEE OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

of June 15, 2009 No. HK-13-26/5672

The Tax Committee of the Ministry of Finance of the Republic of Kazakhstan, having considered the letter of limited liability partnership, concerning the questions posed reports the following.

According to Item 1 of the article 241 "About Taxes and Other Obligatory Payments in the Budget" of December 10, 2008 No. 99-IV (Tax code) of work, the services provided by the nonresident who is not the payer of the VAT in the Republic of Kazakhstan are turnover of the taxpayer of the Republic of Kazakhstan getting job, services if the place of their realization is the Republic of Kazakhstan, and are subject to VAT liability according to the Tax code.

According to Item 3 of article 236 of the Tax Code if sales of goods, works, services has auxiliary character in relation to realization of other main goods, works, services, the place of such auxiliary realization the place of realization of the main goods, works, services is recognized.

Thus, if services in regulation of capacity of the electric power have auxiliary character in relation to realization of the main goods, in this case electricity trading, respectively, the support services provided by the nonresident who is not the payer of the VAT in the Republic of Kazakhstan will be turnover of limited liability partnership, the payer of the VAT in the Republic of Kazakhstan. Therefore, this resident of the Republic of Kazakhstan will have obligation on payment of the VAT for the nonresident.

According to the subitem 29) of Item 1 of article 12 of the Tax Code realization is shipment of goods, performance of works, rendering services with sales objective, exchange, voluntary conveyance, and also transfer of the pledged goods to the pawnbroker.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info