VAT refund in Kazakhstan: step-by-step procedure and pitfalls of the procedure

What VAT excess is and who is entitled to refund it

The essence is simple. If for a tax period the VAT you set off (paid to suppliers) is greater than the assessed VAT (on your sales), a VAT excess amount arises. This is an overpayment which the state, as a general rule, keeps on the taxpayer account and offsets against future payments. But in a number of cases it can be refunded in cash to the account.

The right to a value added tax refund from the budget is not available to everyone. Under clause 6 of the new Rules these are three categories:

1. Exporters and "zero-raters" — those who supply goods, work and services at the zero rate (export, international transport, etc.).
2. Subsoil users — companies operating under a subsoil use contract (except for widespread minerals, underground waters and therapeutic muds).
3. Builders of production facilities — those who acquire goods and services for the construction of buildings and structures of production purpose first put into operation in Kazakhstan.

If you do not fall into any of the categories, the excess is not refunded — it is simply offset against future payments. Separately, the law names cases where a refund is prohibited in principle: for example, on invoices of agricultural procurement organisations, or on VAT set off on minerals transferred against an obligation in kind.

Two routes for refund: simplified procedure and thematic audit

The new Rules preserve two routes. The choice is not always yours — it depends on your status and history. Here is the key difference:

The logic is obvious: the simplified VAT refund procedure is fast and without an inspector, but it is open to a narrow circle. A thematic audit is slower and tougher but accessible to everyone entitled to a refund.

Who has access to the simplified procedure

To get into the simplified procedure you need to meet the conditions of clause 23 of the Rules — meet at least one:

• be under tax monitoring on the date of filing the demand and have made zero-rated turnovers during the year; or
• have a share of zero-rated turnovers of at least 50% in the total taxable turnover for the period.

Plus two conditions from clause 25 which must be satisfied simultaneously: no unexecuted notice (within the deadlines of art. 82, 83 of the НК) and a confirmed VAT refund following an audit over the past 12 months. No "history" of successful refund — and the simplified procedure will not be granted.

Step-by-step VAT refund procedure

Let us analyse the VAT refund procedure step by step — as it happens in practice in 2026.

1. Declare the demand in the return. The fact of overpayment itself triggers nothing. You need to specify a VAT refund demand in the return — on form 300.00 (2026), line 300.00.032 I. If you have not specified the demand, the excess is simply offset against future payments or will wait its time within the limitation period.
2. The КГД checks the basic conditions. If there is no excess amount on the taxpayer account or you do not belong to the categories of clause 6, within 2 working days a notice of refusal to consider arrives.
3. The system determines the route. If you fit the simplified procedure, the risk management system automatically calculates the refund amount. If not — a thematic tax audit on VAT is appointed.
4. You receive a notice of the amount. Under the simplified procedure a notice of the confirmed refund amount arrives (Annex 3 to the Rules). For an audit — the thematic audit report.
5. You file an offset/refund application. After confirmation you need to file a tax application for offset and/or refund. Meet the deadline of clause 17 — the money will be refunded in the general procedure; miss it — the refund will still be made, but within 10 working days from the application date.
6. Offset of debts, then money to the account. Where there is tax debt, the КГД will first close it against the excess (without your application) and refund the remainder to the bank account.

All key deadlines of the procedure are in one table:

Pitfalls: risk management, "Pyramid" and counter-checks

This is where the most important part begins — the place where companies lose money even when they have a full right to a refund. When confirming the amount the risk management system is applied, and it looks not only at you but at the entire supplier chain.

"Supplier Pyramid" report

The "Pyramid report" (the tax authority in the RK forms it under art. 166 of the НК) is a comparative analysis of electronic invoices along the entire chain of your suppliers. The system searches for gaps: understatement of turnovers, transactions for the sake of non-payment of tax, performance of an obligation not by the contracting party. If a risk emerges at any level of the chain, your refund amount is reduced — even though you personally may have done everything clean.

There is also a cut-off threshold. For suppliers whose VAT amount on all invoices for the audited period does not exceed 300 МРП (in 2026 this is 1,297,500 tenge at an МРП of 4,325 tenge), requests for counter-checks are not sent. This protects the refund from being derailed by small counterparties.

Counter-check of suppliers

If the "Pyramid" has shown signs of risk, the КГД launches a counter-check of suppliers. For some counterparties the request is mandatory — for example, if criminal proceedings under articles 216 or 245 of the Criminal Code have been opened against the supplier or its e-invoice issuance has been suspended. No reply to the counter-check by the required date — and the corresponding VAT amount is not confirmed for refund.

In parallel desk control of the direct suppliers is conducted for understatement of VAT, and VAT arrears in the chain are checked. The amount not confirmed for refund is calculated by the formula F = R + K + V + E + D, where each letter is a separate category of risk (from unverified suppliers to unconfirmed exports and currency proceeds not received).

Refusal of VAT refund in the RK: why the amount is cut

The law directly lists the grounds on which a VAT refund refusal in the RK follows the results of a thematic audit. Knowing them means closing risks in advance. A refund is not made if:

• no replies to counter-checks were received or the check was not conducted (the supplier is absent from its address, documents lost);
• understatement of VAT at the supplier was identified when reconciling its reporting with data on issued invoices;
• proceedings under articles 216 and 245 of the Criminal Code have been opened against you or your supplier;
• e-invoice issuance is suspended for you or your supplier;
• the direct supplier has VAT arrears;
• currency proceeds have not been received (received in part);
• the fact of export of goods has not been confirmed (confirmed in part).

An important nuance: an unconfirmed amount is not lost. As the cause is remedied (the supplier has paid the additional tax, a reply to the request has arrived, the proceeds have been received), it can be re-declared for refund by including it in the demand in subsequent periods — within the limitation period.

Three mistakes that cost money

Mistake 1. They don't check suppliers before the transaction. Why this happens: they look at the price and conditions, not at the counterparty's tax discipline. What it threatens: a gap in the "Pyramid" through someone else's fault will cut your refund. Solution — check the counterparty through open services of the КГД before signing the contract.

Mistake 2. They claim a refund with an unclosed notice. The presence of an unexecuted notice under articles 82, 83 of the НК automatically knocks you out of the simplified procedure (clause 25). What it threatens: instead of 15 days — 55 and a full audit. Solution — close all notices before filing the demand.

Mistake 3. They overlook currency proceeds on export. On export the КГД reconciles the receipt of currency proceeds with data from second-tier banks. Not received — part of the VAT will not be refunded. Solution — track proceeds on each contract until the audit is complete.

Appealing tax audit results

If you have been refused following the audit and you do not agree, there is a working mechanism. Appealing tax audit results on VAT matters goes along two lines, and they cannot be confused.

Complaint on the notice of audit results. Filed with the authorised body (higher КГД) within 30 working days from the day of service of the notice — under the procedure of Chapter 18 of the НК. Missed the deadline for a valid reason — it can be reinstated on application. A copy of the complaint is sent to the body that conducted the audit.

Complaint on actions and inaction of officials. Goes under the АППК РК — filed to the body or person whose actions are being appealed. They have 3 working days to either satisfy the complaint or transfer the case to the higher body.

Separately — a complaint on the quality of the state service: it is considered within 5 working days (by the service provider itself) or 15 working days (by the body for control over the quality of state services). In practice tax disputes on VAT are most often resolved precisely at the stage of objections to the preliminary report and pre-trial appeal — only a minority of cases reach court.

Bottom line

VAT refund in 2026 is not about "file and wait" but about preparation. The money is received by those who have checked suppliers in advance, closed notices, monitored currency proceeds and know exactly which route — simplified or through an audit — is available to them. Most refusals are connected not with the company itself but with gaps in the chain that could have been seen in advance.

If your situation is similar to what is described — a refund has been claimed, an audit is under way or a refusal has already been received — book a consultation. We will analyse your case according to the rules and assess the real chances of recovering the amount.

Authors

Alibayev Yerkebulan

Director

Khassanov Yerbolat

Managing partner