VAT and Business: What Changes Will Take Effect from 2026

VAT and Business: What Changes Will Take Effect from 2026

The adoption of the new Tax Code of the Republic of Kazakhstan has become one of the most significant developments in tax policy in recent years. Particular attention has been given to reforming the administration of value-added tax (VAT), one of the key taxes affecting all sectors of the economy. Starting from January 1, 2026, a number of changes will be introduced to increase transparency, simplify accounting, and reduce the tax burden for certain categories of businesses. Below are the key updates and their impact on entrepreneurs and the economy.

Increase in the Standard VAT Rate to 16%

According to the new Tax Code, the standard VAT rate will rise to 16% from January 1, 2026. This rate will apply to both taxable turnover and taxable imports. The goal is to expand the tax base and strengthen the national budget. At the same time, the government introduces compensatory measures to prevent price increases on socially important goods and services.

Reduced VAT Rates for the Medical Sector

An important change includes the introduction of reduced rates for pharmaceuticals and medical services:

• 5% from 2026
• 10% from 2027

These benefits do not apply to services already exempt from VAT. The reduced rates aim to support the population, lower treatment costs, and improve the accessibility of healthcare services—especially relevant in light of the growing demand for quality medical care.

Lower VAT Registration Threshold

One of the most notable changes is the reduction of the mandatory VAT registration threshold from 20,000 MRP to 10,000 MRP. This aims to reduce the shadow economy. Previously, many businesses artificially split operations to avoid VAT registration. The new threshold makes such schemes unprofitable, ensuring fair competition and a more transparent business environment.

Lowering the threshold also broadens the tax base and increases the number of officially registered business entities, contributing to improved tax discipline.

Support for Agricultural Producers

Peasant farms (KFH) remain exempt from VAT. For agricultural producers registered as legal entities, the share of deductible VAT increases from 70% to 80%. This reduces the tax burden, supports the domestic agricultural sector, and helps prevent food price increases.

Abolition of VAT Exemption for Residential Property

Starting January 1, 2026, VAT exemptions for the sale and lease of residential property will be removed. This simplifies tax accounting, as businesses and developers will no longer need to allocate input VAT between residential and non-residential areas—a previously complex procedure.

Economic Impact of the Updates

The comprehensive changes to VAT administration aim to: increase business transparency, improve tax oversight, reduce the shadow economy, create fair competitive conditions, support socially significant sectors, stimulate economic activity.

In the long term, the reforms aim to strengthen the fiscal system and create a favorable environment for business development.

How FChain Can Help Your Business Adapt

FChain offers expertise in tax consulting, accounting, and legal support. Amid major tax reforms, we help businesses:

• prepare for the VAT rate changes;
• assess the impact on financial models;
• analyze VAT registration requirements;
• optimize tax burdens;
• correctly manage input and output VAT;
• file tax reports accurately and on time;
• avoid penalties and desk audit notices;
• build an effective tax planning framework.

We ensure full support during the transition period and help businesses confidently operate under the new tax rules.

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

New Taxpayer Registration Rules from 1 January 2026

 Prepared by: Moldir Mukhtar
Business Development Specialist

FChain Kazakhstan
December 4, 2025