In Kazakhstan the implementation of e-Invoicing started on a voluntary basis in 2014. This was followed by the declaration published by the Tax Committee of the Ministry of the Finance of the Republic of Kazakhstan that e-Invoicing is mandatory for all taxpayers after January 1, 2019. IS ESF is the name of the national e-Invoicing system, which is an example of the clearance model commonly used all over the world in tax reporting requirements.
For now we would like to share with you our clients’ five key questions and our answers about e-invoicing in Kazakhstan.
- Who falls under the scope of this regulation?
– Legal entities that are resident in Kazakhstan (with the exception of state institutions)
– Individual entrepreneurs
– Non-resident taxpayers in Kazakhstan that are operating in the Republic of Kazakhstan through a branch or representative office
– Trustees who earn income on the sale of goods and services under agreement with trust management or founders, or with beneficiaries in other cases of the emergence of trust management.
2. What is Kazakhstan’s prescribed electronic invoice format?
Issued electronic invoices must be in XML format.
3. Is there an archiving period for the invoices?
Electronic invoices must be stored for at least 5 years. These will be stored by the tax authority in the IS ESF system for this period, so taxpayers don’t need to worry about it.
4. Is digital signature required?
Yes, e-invoices must be electronically signed by taxpayers.
5. What are the expected benefits for taxpayers implementing e-Invoicing?
There are several advantages of implementing e-Invoicing.
– e-Invoicing is reliable and secure. In the submission stage, taxpayers submit all documents to the Republic of Kazakhstan’s official web portal. As such, suppliers can be confident that the buyer has received their invoices.
– If all invoices are issued electronically, taxpayers do not have to provide a register for goods and services.
– You will have a chance to view the life cycle of each product.
– Electronic invoice allows cost savings of up to 70%, compared with manual invoices.
– e-Invoicing will help to address the fraud and risk associated with paper-based invoicing.
– e-Invoicing establishes a clear system that reduces the risk of human error.
For more information about the process and our related solutions, please contact us at firstname.lastname@example.org