VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services supplied for use or consumption in Kazakhstan. VAT is a consumption tax because it is ultimately borne by the final consumer.
Where a non-resident supplier (such as Zoom) provides electronically supplied services to individuals in Kazakhstan, the non-resident supplier is required to collect VAT from customers and remit the VAT charged to the tax authorities in Kazakhstan. The responsibility to collect and remit VAT depends on whether the customer is a business customer or an individual consumer.
If you are a business customer, you should provide Zoom with your Business Identification Number (BIN). If your BIN is valid, then no VAT will be charged on the supplies made to you by Zoom. If you are not a business customer or if you are a business customer but do not provide a valid BIN, VAT will be charged on the supplies made to you.
Due to specific legislation in Kazakhstan, Zoom is required to collect and remit VAT in relation to supplies to individual consumers in Kazakhstan. If a customer has a “Sold To” location in Kazakhstan and has not provided a valid BIN, Zoom will charge VAT on the supplies made to you. The Sold To country entered by you is subject to cross-referencing against other data to verify that the Sold To country is accurate.
A Business Identification Number (BIN) is a 12-digit number issued to businesses in Kazakhstan by the Ministry of Finance of the Republic of Kazakhstan. According to which if the fifth digit in the BIN is 4 (resident legal entities), 5 (non-resident legal entities) or 6 (joint individual entrepreneurs), then the BIN is considered to belong to a business customer. Alternatively, an Individual Identification Number (IIN) is identified where the fifth digit is 1,2 or 3, in this case the customer is treated as an individual consumer.
To provide your BIN, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.
Zoom performs periodic validation checks of customer BINs to ensure that the BIN remains valid. If, during these periodic validations, it is identified that your BIN is no longer valid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid BIN is provided.
You are required to notify us if there is a change to your BIN or business status. If you enter an Individual Identification Number (IIN), VAT will be charged on the supplies made to you by Zoom.
No, the specific rules relating to non-resident suppliers of electronically supplied services to individual consumers in Kazakhstan does not require a tax registration in Kazakhstan. Instead, Zoom has notified the tax authorities that it will collect and remit VAT from individual consumers in Kazakhstan, which is in accordance with the relevant legislation for non-resident suppliers of electronically supplied to customers in Kazakhstan.
No, where a customer in Kazakhstan has not provided a valid BIN, Zoom will charge VAT on all supplies made to you.
If you have provided a valid BIN to Zoom, no VAT will be charged on the supplies made to you. However, you may be required to report the purchase and self-assess for the VAT under the “reverse charge” mechanism in your VAT return if the place of supply is Kazakhstan. There is no VAT obligation for a customer who is not a business customer, i.e., individual consumers.
A valid BIN may be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If a valid BIN is not entered at the time the next invoice is issued, VAT will be charged until a valid BIN is provided. No retrospective adjustments will be made where you have not provided a valid BIN to Zoom at the time of invoicing.
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant VAT rules in Kazakhstan. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.