{"id":52860,"date":"2026-08-18T07:12:39","date_gmt":"2026-08-18T04:12:39","guid":{"rendered":"https:\/\/kz.f-chain.com\/?p=52860"},"modified":"2026-08-18T07:13:04","modified_gmt":"2026-08-18T04:13:04","slug":"vat-medicines-medical-devices-kr","status":"publish","type":"post","link":"https:\/\/kz.f-chain.com\/en\/feautured-post\/vat-medicines-medical-devices-kr\/","title":{"rendered":"VAT on Medicines in Kazakhstan"},"content":{"rendered":"

VAT on Medicines in Kazakhstan<\/strong><\/h2>\n

Kazakhstan is once again discussing its approach to taxation in the healthcare sector. Business representatives have proposed introducing a single end-to-end VAT rate of 5% on all medicines and medical devices, while fully exempting medical services from VAT. The initiative was put forward by the National Chamber of Entrepreneurs \u201cAtameken\u201d at the 24th meeting of the Project Office for the implementation of the new Tax Code. According to the business community, a single rate would simplify tax administration and make the rules clearer for all participants in the pharmaceutical and medical market.<\/p>\n

 <\/p>\n

What VAT Rates Apply in the Healthcare Sector in 2026<\/h3>\n

The new Tax Code of Kazakhstan provides for a phased change in the taxation of certain healthcare transactions. From January 1, 2026, a reduced VAT rate of 5% applies to the wholesale and retail sale of medicines and medical devices. However, from January 1, 2027, the rate is expected to increase to 10%. At the same time, the legislation provides for a number of exemptions. In particular, VAT does not apply to certain medical services and medicines provided under the Guaranteed Volume of Free Medical Care and Compulsory Social Health Insurance. The exemption covers more than 3,000 pharmaceutical products. In addition, exemptions are provided for certain services related to the diagnosis, treatment, prevention and rehabilitation of rare and socially significant diseases, as well as for the import of pharmaceutical substances used for the production of medicines under the Guaranteed Volume of Free Medical Care and Compulsory Social Health Insurance.<\/p>\n

 <\/p>\n

Why Businesses Propose Keeping VAT at 5%<\/h3>\n

The main problem with the current approach is the existence of different tax regimes for transactions within the same industry. Companies must determine which goods and transactions are subject to VAT, which rate applies in each particular case, and whether a transaction qualifies for an exemption. For businesses, this means an additional burden on accounting and tax functions, as well as increased requirements for the configuration of accounting systems and primary documentation.<\/p>\n

Therefore, industry representatives propose applying a s<\/strong>ingle end-to-end VAT rate of 5% to medicines and medical devices at all stages of circulation and across the entire product range. This approach could potentially:<\/p>\n

    \n
  1. simplify tax and accounting procedures;<\/li>\n
  2. reduce the number of disputes when determining the applicable tax regime;<\/li>\n
  3. reduce the administrative burden on market participants;<\/li>\n
  4. make the tax burden throughout the supply chain more predictable;<\/li>\n
  5. reduce the risk of errors in VAT calculation.<\/li>\n<\/ol>\n

    At the same time, it is proposed that medical services be fully exempt from VAT.<\/p>\n

     <\/p>\n

    No Decision Has Been Made Yet<\/h3>\n

    The business proposal remains an initiative and does not mean an automatic change in VAT rates<\/strong>. Participants in the meeting noted that revising the current approach requires additional analysis. It is necessary to assess the potential consequences for the state budget, the pharmaceutical and medical industries, as well as the accessibility of medicines and medical care for the population. Following the discussion, it was decided to return to the issue after more detailed calculations have been carried out. Thus, for the time being, companies must follow the current provisions of the Tax Code while continuing to monitor further discussions regarding possible changes.<\/p>\n

     <\/p>\n

    What This Means for Pharmaceutical and Medical Companies<\/h3>\n

    For market participants, VAT is important not only in terms of the applicable rate. Changes in the tax regime may affect the entire financial model of a company \u2014 from procurement and imports to the formation of selling prices and the recording of transactions in accounting. Pharmaceutical companies, distributors, pharmacy chains, importers of medical devices and medical organizations should assess in advance:<\/p>\n

      \n
    1. which transactions are subject to VAT and at what rate;<\/li>\n
    2. which goods and services qualify for exemptions;<\/li>\n
    3. how to properly maintain separate accounting;<\/li>\n
    4. how changes in rates affect input VAT;<\/li>\n
    5. whether contracts and pricing policies need to be adjusted;<\/li>\n
    6. whether accounting processes and information systems are configured correctly;<\/li>\n
    7. how a possible increase in the rate to 10% from 2027 may affect the company\u2019s financial performance.<\/li>\n<\/ol>\n

      Particular attention should be paid to transitional transactions and long-term contracts whose performance falls within periods subject to different tax conditions.<\/p>\n

       <\/p>\n

      Changes to the Mineral Extraction Tax Are Also Being Discussed<\/h3>\n

      The Project Office meeting also considered another significant issue under the new Tax Code \u2014 changes to the taxation of mineral extraction. From January 1, 2027, new mineral extraction tax rates are expected to be introduced as part of the tax reform. The new mechanism should take into account the existing overall tax burden, including rent tax and export customs duties. Representatives of the energy sector pointed to the potential risk of double assessment of export customs duties. The State Revenue Committee explained that the methodology for the new rates was originally calculated taking into account the abolition of the relevant payments, and therefore no double burden is envisaged. The relevant provisions are also expected to be synchronized with the revised launch dates for the common oil and petroleum products market of the Eurasian Economic Union.<\/p>\n

       <\/p>\n

      FChain Will Help You Prepare for Changes in Tax Legislation<\/strong><\/h3>\n

      Changes to the Tax Code require businesses not only to keep track of new regulations but also to assess their practical impact on accounting, contracts, pricing and tax obligations. FChain provides professional services in taxation, accounting, consulting and legal support for businesses in Kazakhstan:<\/p>\n

      \u00b7 accounting and tax record-keeping;<\/a>
      \n      \u00b7 legal support for businesses;<\/a>
      \n      \u00b7 preparation and processing of HR documents;<\/a>
      \n\u00b7 advisory support on HR matters;
      \n      \u00b7 migration services for businesses;<\/a>
      \n\u00b7 review of contracts and documents for compliance with current requirements.<\/p>\n

      FChain \u2014 professional business support in the changing regulatory environment of Kazakhstan.<\/strong><\/p>\n

      \u00a0<\/strong><\/p>\n

      Changes in Accounting in Kazakhstan: New Standard Chart of Accounts<\/a><\/strong><\/p>\n

      Prepared by: Moldir Mukhtar<\/em><\/p>\n

      Business Development Specialist<\/em><\/p>\n

      Fchain Kazakhstan<\/em><\/p>\n

      \u00a0<\/em>\u00a0<\/em>\ud83d\udce9<\/strong>almaty@f-chain.com
      \nWhatsApp: +7 771 214 1820<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      VAT on Medicines in Kazakhstan Kazakhstan is once again discussing its approach to taxation in the healthcare sector. Business representatives have proposed introducing a single end-to-end VAT rate of 5% on all medicines and medical devices, while fully exempting medical services from VAT. The initiative was put forward by the National Chamber of Entrepreneurs \u201cAtameken\u201d<\/p>\n","protected":false},"author":6,"featured_media":52861,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[23,24],"tags":[],"class_list":["post-52860","post","type-post","status-publish","format-standard","hentry","category-feautured-post","category-news-ribbon"],"acf":[],"_links":{"self":[{"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/posts\/52860","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/comments?post=52860"}],"version-history":[{"count":2,"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/posts\/52860\/revisions"}],"predecessor-version":[{"id":52865,"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/posts\/52860\/revisions\/52865"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/media\/52861"}],"wp:attachment":[{"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/media?parent=52860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/categories?post=52860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kz.f-chain.com\/en\/wp-json\/wp\/v2\/tags?post=52860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}