Taxpayers in Kazakhstan have had the option of generating invoices in electronic format from 2014 on a voluntary basis. The Tax Committee of The Ministry of Finance of The Republic of Kazakhstan made issuing e-Invoices mandatory for all VAT-registered taxpayers in 2019.
This process is managed and monitored by the Ministry of Finance of The Republic of Kazakhstan through its e-Invoicing information system (IS ESF), which is used to issue, submit, and store e-Invoices.
Scope of the e-Invoice Regulation
From 2019 all VAT registered taxpayers who sell goods or provide services are obliged to issue electronic VAT invoices through IS ESF.
The following group of taxpayers are required to issue electronic VAT invoices:
- resident legal entities (except for public administrations)
- non-residents operating in the Republic of Kazakhstan through a branch or representative office
- individual entrepreneurs
- trustees who earn income from the sale of goods, work, and services under agreements of trust management with the founders of trust management companies, or with beneficiaries in other forms of trust management
Technical details of the e-Invoice
Electronic VAT invoices must be issued in XML format and digitally signed by the taxpayer before being submitted to the IS ESF system.
E-Invoices can be uploaded to IS ESF either by manually uploading them to the IS ESF web application, or sending them through a published application programming interface (API).
Before entering the portal and reporting the e-Invoices, each user must be registered with their certificate. To acquire digital certificates, entities or individuals should apply to the National Certification Center of the Republic of Kazakhstan (NCA RK). A testing system is also applicable with digital certificates. Issued e-Invoices are stored in the IS ESF for five years.
How can SNI help you?
SNI’s add-on solution is an end-to-end solution. That means data retrieving from SAP, data mapping, processing, and communication with tax authorities will be performed through a single SAP add-on.
Electronic VAT invoices are issued in XML format and digitally signed by the taxpayer before being sent to the IS ESF system.