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Kazakhstan plans to exempt QR payments and mobile transfers from VAT

The government is discussing expanding tax exemptions to all types of digital payments under the new Tax Code

In brief
  1. Kazakhstan's government is considering a zero VAT rate for QR payments, mobile transfers, e-money, and the digital tenge.
  2. Currently, only traditional bank card transactions enjoy this tax exemption.
  3. Regulators must calculate the economic impact to justify the potential loss in budget revenue.
Kazakhstan plans to exempt QR payments and mobile transfers from VAT

The government of Kazakhstan is discussing expanding tax exemptions to modern digital payments while preparing the new Tax Code.

Financial regulators propose extending the zero value-added tax (VAT) rate to the servicing of QR payments, phone number transfers, e-money, and the digital tenge. As reported by Kapital.kz, citing the government’s press service, only traditional bank card transactions are currently exempt from this tax.

Historically, the exemption was introduced to stimulate cashless payments when bank cards were the primary tool. With the emergence of new payment methods, tax regulations required an update. The exemption cannot be automatically transferred to new instruments—the list of operations must be clearly defined and the budget impact assessed.

Deputy Prime Minister Serik Zhumangarin instructed officials to justify the economic effect of implementing the measure. Now, the Agency for Regulation and Development of the Financial Market (ARDFM), together with the National Bank and the Ministry of Finance, must prepare the relevant calculations.

Expanding the tax exemption to new instruments will require regulators to prove that the market effect outweighs the lost budget revenue.

Why it matters

Extending VAT exemptions to modern digital payments levels the playing field for new financial technologies against traditional bank cards, potentially accelerating the adoption of QR codes and the digital tenge.

Sources