Simplification of VAT Application in the Healthcare Sector - FCHAIN

Simplification of VAT Application in the Healthcare Sector

The Ministry of Health of the Republic of Kazakhstan has submitted for public discussion a draft Government Resolution introducing amendments to the procedure for applying value-added tax (VAT) in the healthcare sector.

The document proposes adjustments to Government Resolutions No. 1203 and No. 1204 dated December 31, 2025, which regulate VAT exemption and the application of VAT rates to certain types of medicines, medical devices, components, and technical assistive (compensatory) products.

 

What Is Proposed to Be Changed

The main objective of the draft is to streamline and simplify the application of VAT in the import and sale of medical products, as well as to ensure uniform application of tax regulations.

The key amendments include:

• aligning the lists of medicines and medical devices with the current EAEU TN VED codes;
• eliminating potential discrepancies in product classification;
• clarifying wording in the Rules and notes to the lists to prevent ambiguous interpretation;
• increasing legal certainty in tax and customs administration.

It is important to emphasize that the draft does not introduce new taxes and does not отмен existing VAT exemptions. The proposed changes are aimed exclusively at reducing administrative risks and increasing predictability for market participants.

 

Why This Matters for Business

Correct product classification under TN VED codes directly affects the application of VAT exemptions. Errors may result in additional tax assessments, disputes with tax authorities, and increased audit risks.

The proposed amendments are expected to:

• reduce the risk of discrepancies between businesses and tax authorities;
• simplify import procedures;
• enhance transparency of tax administration in the pharmaceutical sector.

Public discussion of the draft will continue until February 15, 2026. Comments and proposals may be submitted via the “Open NPA” portal.

 

FChain Kazakhstan – Expert Support for the Pharmaceutical Industry

FChain Kazakhstan has many years of experience supporting pharmaceutical companies, importers of medicines, and medical device distributors.

We provide comprehensive assistance in:

• tax and legal advisory services;
• application of VAT exemptions;
• support during tax audits and disputes;
• optimization of supply structures and contractual arrangements.

Working with the pharmaceutical sector, we take into account industry-specific regulatory requirements and help companies build a sustainable and compliant operating model.

 

VAT and Business: What Changes Will Take Effect from 2026

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