VAT Exemption on the Import of Raw Materials for the Production of Medicines - FCHAIN

VAT Exemption on the Import of Raw Materials for the Production of Medicines

 Until January 1, 2026, the Tax Code of the Republic of Kazakhstan provided VAT exemptions for the sale and import of raw materials intended for the production of medicines.

 

Regulation Before 2026

The exemption was governed by:

• Subparagraph 33) of Article 394 of the Tax Code;
• Subparagraphs 10) and 10-1) of Paragraph 1 of Article 399 of the Tax Code (as effective until January 1, 2026).

Under these provisions, the sale within Kazakhstan and the import of raw materials and supplies used for the production of medicines were exempt from value-added tax (VAT).

 

Changes Effective January 1, 2026

With the new Tax Code entering into force on January 1, 2026, similar VAT exemption provisions:

• for the sale of raw materials used in pharmaceutical production;
• for the import of such raw materials are no longer provided.

The current version of the Tax Code does not contain provisions exempting from VAT:

• raw materials and supplies;
• equipment;
• other goods used in the production of medicines.

 

Conclusion

As of January 1, 2026, the import of raw materials for the production of medicines is subject to VAT. The domestic sale of such raw materials within Kazakhstan is also subject to VAT on a general basis.

Pharmaceutical companies should take these changes into account when forming pricing policies, calculating production costs, and planning import contracts.

 

How FChain Can Help

Changes in tax legislation directly affect business financial models, cost structures, and profitability in the pharmaceutical sector.

FChain provides comprehensive support, including:

• restructuring supply contracts in line with new legislative requirements;
• analysis of tax implications and VAT advisory services;
• support during tax audits and preparation of legal positions;
• assessment and mitigation of tax risks.

We help businesses adapt to legislative changes in a timely manner, maintain financial stability, and minimize tax risks.

 

Registration of Medicinal Products and Devices under National Rules

 

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