Kazakhstan's VAT Rate to Jump to 16% in 2026, Affecting Consumers and Businesses
Kazakhstan's tax landscape is set to change significantly from 2026, with a VAT rate increase and various exemptions and reductions. The government aims to balance the budget while supporting specific sectors.
From January 1, 2026, the VAT rate will rise from 12 to 16 percent, the first increase in over a decade. However, medical products and services will see a temporary reduction to 5 percent in 2026, rising to 10 percent the following year. These will be fully exempt within the state-guaranteed healthcare system or mandatory social insurance.
The VAT registration threshold for businesses will decrease from 20,000 to 10,000 MCI, approximately 40 million Tenge. Books printed in Kazakhstan will remain VAT-exempt, while newspapers and magazines will be taxed at a reduced rate of 10 percent. Farmers will benefit from an increased input VAT deduction, from 70 to 80 percent.
These changes are part of a comprehensive tax reform, also affecting income and corporate taxes. While critics warn of rising consumer prices and bureaucracy, the government emphasizes fair burden distribution through digitalization and targeted exemptions. Both businesses and consumers will face new responsibilities and opportunities starting 2026.
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