13.10.2026, 01:31
Kazakhstan's Ministry of National Economy Refuses to Reduce VAT on Leasing for Farmers
From January 1, 2026, the 16% VAT rate applies to all lease payments due on or after that date, regardless of when the agreement was signed
Kazakhstan's Ministry of National Economy does not plan to reduce the value-added tax rate for farmers using financial leasing. As reported by LS, payments due from January 1, 2026, are subject to VAT at a rate of 16%, including payments under agreements concluded earlier.
The ministry's position was outlined by Acting Minister of National Economy Azamat Amrin in response to a parliamentary inquiry.
According to him, current tax legislation provides no grounds for retaining the previous 12% VAT rate exclusively for financial leasing agreements signed before 2026.
The ministry explained that the application of the 16% rate is linked to the general taxation procedure for transactions carried out from January 2026. This mechanism establishes uniform tax conditions for all taxpayers.
Azamat Amrin emphasized that the applicable VAT rate is determined not by the date on which a leasing agreement was signed, but by the moment when the taxable turnover arises.
In the case of financial leasing, the date of taxable turnover for a periodic lease payment is considered to be the date on which that payment becomes due. Therefore, if a payment is due on or after January 1, 2026, the 16% VAT rate applies regardless of when the agreement was concluded.
The ministry representative also addressed the issue of the financial burden on agricultural producers. In his opinion, support for farmers experiencing financial difficulties should be provided through targeted subsidies and preferential lending programs rather than by introducing separate tax advantages based on the dates when leasing agreements were signed.
The ministry also believes that retaining the 12% rate only for agreements concluded before 2026 would result in different tax rates being applied to identical transactions within the same tax period.
Thus, the Ministry of National Economy maintains a uniform procedure for calculating VAT on lease payments that become due from the beginning of 2026.
