E-invoice is called as ESF (Электронный счет-фактура) in Kazakhstan.
It is a digital version of paper invoices which are standardized for tax audit purposes by the State Revenue Committee. (Комитет Государственных Доходов, Министерства Финансов Республики Казахстан)
On July 1, 2014, it became possible to issue invoices in electronic form in the Republic of Kazakhstan, on a voluntary basis.
According to the Kazakhstan Tax Code updated on 1 January, 2019, all VAT payers selling goods and providing services must issue electronic invoices via the E-invoicing System (IS ESF).
What is IS ESF?
IS ESF is an official portal of the State Revenue Committee to issue, process and store invoices in electronic XML format. It is used for invoice transfer between customers, suppliers and the state.
What is Kazakhstan E-Consignment Note (or e-delivery note)?
Taxpayers transporting import and export goods from warehouses must produce delivery notes electronically. The law is Order No. 1424 “On approval of the List of goods subject to the obligation to draw up accompanying invoices for goods, as well as the Rules for registration and their workflow” dated December 29, 2019.
The electronic consignment note pilot project is being implemented on the territory of the Republic of Kazakhstan from November 1, 2020. The date for mandatory implementation has not been published yet, but it is planned for 2nd or 3rd quarter of 2021.
Participation in the pilot project is mandatory for the entities:
- carrying out activities for the production and sale of alcohol and alcoholic beverages, or certain types of petroleum products or tobacco products
- importing goods from the territory of the Eurasian Economic Union Member States to the territory of the Republic of Kazakhstan;
- exporting goods from the territory of the Republic of Kazakhstan to the territory of the Eurasian Economic Union Member States;
- importing excisable goods into the territory of the Republic of Kazakhstan from the territory of non-EAEU member states;
- exporting of excisable goods from the territory of the Republic of Kazakhstan to a non-EAEU member state
- carrying out activities for the sale of goods from the WTO exclusion list;
- carrying out activities for the sale of goods for which electronic invoices are issued through a virtual warehouse;
- entities engaged in the sale of gold-containing products.
Who is obliged for e-invoices in Kazakhstan?
In addition, below taxpayers are also forced to issue electronic VAT invoices regardless of their VAT registration status:
– taxpayers in the cases defined by the legal acts which are adopted because of the implementation of international treaties ratified by the Republic of Kazakhstan;
– taxpayers when selling goods included in the List of Exemptions which includes the goods with the reduced customs duties applied in accordance with Kazakhstan’s obligations to the WTO.
–taxpayers who are authorized economic operators, customs representatives, commission agents, customs carriers, distributors and freight forwarders, owners of temporary storage warehouses, owners of customs warehouses as defined by the customs law.
Is electronic signature mandatory in Kazakhstan?
Yes. E-signature is mandatory for Kazakhstan e-invoices and e-consignment notes. Taxpayers must obtain two keys to sign invoices from the National Certifying Center
- Authentication electronic key AUTH – for the authorization on IS ESF site
- electronic digital signature GOST for signing ready ESF invoices
What is Virtual Warehouse in Kazakhstan?
Kazakhstan taxpayers issuing e-invoices who are involved in sales of certain types of goods should register these goods within the Virtual Warehouse (VW) module of IS ESF e-invoicing system. If those goods are not recorded in the VW module, their sale is not possible: The IS ESF system prevents a taxpayer from issuing an electronic invoice for such goods.
As of 1 April 2018, it is obligatory for taxpayers importing and/or selling vehicles with reduced rates of import customs duties to record those vehicles in the VW module . There are 235 such goods according to the Decision No. 18 of the Council of the Eurasian Economic Commission (dated 26 January 2018). In 2019 and 2020, other goods including coal, sugar, refrigerators and cameras are gradually included to the list of goods that must be recorded in the Virtual Warehouse.
How can SNI help you?
SNI has been developing an e-invoice and e-delivery note solution for SAP. It is planned to be ready in March 2021. The solution will provide the users an end-to-end integration with the IS ESF e-invoicing portal from SAP with the help of local e-invoice experts and consultants. Reach us for detailed information.