Kyrgyzstan introduces electronic VAT filing 2014

Mon 30th Dec 2013

From 1 January 2014, taxable persons will only be able to file their Kyrgyzstani Value Added Tax returns online.

However, plans to move from monthly VAT returns to quarterly VAT returns look to have stalled, with the Ministry of Finance confirming that they are not ready for the changes. Monthly filings and payments of any VAT liabilities are due by the 25th of the month following the reporting month.

Kyrgyzstan VAT compliance

Businesses are required to register with the tax office for VAT if their turnover in the previous 12 months exceeds KGS 4 million (about €50,000). Companies may nevertheless make a voluntary registration if they are below this VAT registration threshold.

Kyrgyzstani VAT is chargeable at 12% (reduced from 20% in 2008). This is high for the Central Asian region, and means there are major problems with revenue collections and fraud. There is a limited range of taxable supplies charged at zero VAT (e.g. transport), and VAT exemptions for agricultural, foodstuffs and power supplies.

There is also a sales tax levied on non-resident businesses on certain goods.