Rules for Applying the Zero VAT Rate When Exporting to EEU Countries - FCHAIN

Rules for Applying the Zero VAT Rate When Exporting to EEU Countries

 

In the course of business activities involving foreign economic operations, the correct application of value-added tax (VAT) when exporting goods to the Eurasian Economic Union (EEU) countries is of particular importance.

 

Regulatory framework

The taxation of exports to EEU countries is governed by Article 520 of the Tax Code of the Republic of Kazakhstan.

 

Key rule

When exporting goods from the Republic of Kazakhstan to EEU member states, a zero VAT rate (0%) applies.

This means:

1. the sale of goods is not subject to VAT;
2. at the same time, the taxpayer retains the right to input VAT credit (in accordance with Chapter 49 of the Tax Code of the RK), unless otherwise provided by law.

When the 0% rate applies

The zero rate applies to direct exports of goods under standard commercial transactions with EEU partners, including:

1. export of goods produced in Kazakhstan (except for products resulting from tolling/processing of customer-supplied raw materials);
2. export of leased assets with transfer of ownership;
3. provision of loans in kind (in the form of goods).

 

Confirmation of the zero rate

To apply the 0% VAT rate, the taxpayer must provide documentary proof. The required package includes:

1. application for import of goods and payment of indirect taxes;
2. documents confirming payment of indirect taxes in the destination country;
3. transport (shipping) documents;
4. other documents.

Failure to provide a complete set of documents may result in denial of the zero rate and additional VAT assessment.

 

Practical importance for business

For companies operating in EEU markets, proper application of the zero VAT rate allows:

1. reducing tax burden;
2. optimizing cash flow;
3. avoiding tax risks during audits.

 

FChain Business Services

Applying the zero VAT rate requires not only knowledge of legislation, but also well-structured accounting, document management, and legal support processes. Errors may lead to additional tax charges, penalties, and loss of VAT credit rights. FChain provides comprehensive business support:

Risk-free accounting. We restore accounting, ensure accurate tax and payroll calculations, and prepare your company for universal declaration — so you can confidently pass any audit.

Legal protection. From company registration to complex legal matters — we support you at every stage, assess risks, draft contracts, and protect your interests.

Strong HR support. We help you find and manage employees, organize HR processes, or provide outstaffing solutions — so you can focus on growing your business.

Turnkey migration solutions. We handle work permits, C3 visas, and temporary residence permits quickly and legally — without unnecessary bureaucracy.

FChain is a reliable partner for companies that want to operate in export markets confidently, legally, and efficiently.

 

Payment of Income to a Non-Resident: Application of Double Tax Treaty Provisions

Prepared by: Moldir Mukhtar

Business Development Specialist

FChain Kazakhstan

📩 almaty@f-chain.com
📱 WhatsApp: +7 771 214 1820