Procedure for Deregistration from VAT

Procedure for Deregistration from VAT

 Value-added tax (VAT) is one of the most resource-intensive taxes for businesses: it not only increases the tax burden by 12%, but also requires extensive accounting, regular submission of declarations, and strict compliance with deadlines. Therefore, when there is no necessity to remain a VAT payer, many entrepreneurs prefer to deregister from VAT. When is this possible, and how does the deregistration procedure work?

When You Can Deregister from VAT

According to paragraph 4 of Article 82 of the Tax Code of the Republic of Kazakhstan, a legal entity or individual entrepreneur may deregister from VAT in the following cases:

1. If the turnover for the previous calendar year did not exceed 20,000 MCI.
2. If the turnover for the current year also does not exceed 20,000 MCI.

Thus, the only criterion for mandatory VAT registration is exceeding the established turnover threshold. If the limit is not exceeded, the taxpayer has the right to initiate VAT deregistration.

VAT Deregistration Procedure

1. Preparation of the liquidation VAT declaration (Form 300.00)

In the declaration, you must select the declaration type – “liquidation.”

2. Submission of the VAT deregistration application

The application must be submitted on the same day the Form 300.00 declaration is filed. In the application, you must mark “VAT deregistration.” Both documents are submitted through the Taxpayer’s Cabinet.

Review Period

The tax authority reviews the application within 5 business days and deregisters the taxpayer, provided there are no violations and all information is accurate.

Important Points to Consider

Before submitting a liquidation declaration, carefully assess the tax consequences.

1. Remaining VAT credit cannot be refunded

If the taxpayer’s account contains VAT previously accepted as a credit, it will be annulled and is not subject to refund. This amount will be transferred to the state budget.

2. VAT liabilities must be fully settled

If there is an outstanding VAT liability, it must be fully paid before submitting Form 300.00.

3. VAT must be charged on remaining balances

If the company has on its balance sheet:

• inventories,
• fixed assets (FA),
• intangible assets (IA),
• biological assets, etc.,

then VAT at 12% must be charged on these items as of the day preceding the submission of the liquidation declaration — in accordance with subparagraph 3, paragraph 1 of Article 369 of the Tax Code.

This rule is applied to restore VAT previously claimed as a credit since these balances are considered taxable turnover. This VAT is reported in Line 300.00.001 of the declaration.

How FChain Can Help

Although the deregistration procedure is formally straightforward, the main difficulties often arise in calculating:

• VAT to be restored on inventories and fixed assets,
• accuracy of turnover determination,
• absence of errors in the liquidation declaration,
• timely settlement of outstanding liabilities.

FChain specialists can help you:

• perform a full analysis of balances and calculate VAT payable,
• correctly prepare Form 300.00,
• prepare the VAT deregistration application,
• accompany the process until the company is officially deregistered.

VAT deregistration is a real opportunity to reduce tax burden and simplify accounting if your business turnover does not exceed the established limits. With proper preparation, the procedure takes only a few days. If you want to complete the process quickly and without errors, the FChain team is ready to provide professional support.

For professional support, please contact us at almaty@f-chain.com or via WhatsApp at +7 771 214 1820

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Prepared by: Moldir Mukhtar
Business Development Specialist

FChain Kazakhstan
December 10, 2025