Madina Yunussova TAXES AND TAXATION Lecture 4: Value Added Tax

Taxes and Accounting Agenda Value Added Tax Definition, Payers, Objects, Procedures and Exemptions Presentations and discussions on Value Added Tax vs Sales Tax

Taxes and Accounting Value Added Tax Value added tax is deductions into the Budget of a portion of taxable turnover which was added over the normal operations of companies as well as contributions when company imports goods to the territory of the Republic of Kazakhstan. Value added tax payable to a budget on taxable turnover is determined as the difference between the amount of VAT assessed for goods which were sold and the amount of VAT to be paid for goods which were received VAT assessed for goods which were sold VAT to be paid for goods which were received VAT

Taxes and Accounting Tax Rates 12% 0%0%0%0% Tax Period: Calendar Quarter

Taxes and Accounting Value added taxation objects: 1) Taxable turnover; 2) Taxable import. Value added taxation payers: Registered individuals and entities to pay the Value added tax in the Republic of Kazakhstan. Individuals and entities that imports goods to the territory of the Republic of Kazakhstan.

Taxes and Accounting Concept Check Objects of Taxation of VAT are: 1.Taxable Export 2.Turnover of goods 3.Taxable Turnover 4.Turnover of services

Taxes and Accounting Concept Check Objects of Taxation of VAT are: 1.Taxable Export 2.Turnover of goods 3.Taxable Turnover 4.Turnover of services

Taxes and Accounting Problem 1 Magnet LLP sells food items. In the first quarter of 2014 company sold: – dairy products - $ KZT, including VAT – Confectionary products – KZT, including VAT – Bakery products – KZT, including VAT Space for food storage was renovated for the amount of KZT, including VAT Fixed assets purchased for KZT Please determine the amount of taxable turnover and the VAT amount to be transferred to the budget for the fiscal period.

Taxes and Accounting Step 1: Calculate profit charged with VAT /112%= /112%= /112%= VAT: * 12% = * 12% = * 12% = Total VAT=

Taxes and Accounting Step 2: Calculate the value of tax deductions – For the cost of repair *12% /112%= – Cost of fixed assets purchased *12%/112% = Thus the amount of deductions will be KZT

Taxes and Accounting Process of registration on the value added tax Individuals and companies have to submit registration application no later that 15 calendar days from the end of any production period (no more than 12 months) ONLY IF turnover (revenue) exceeds minimum of times of MCI Becomes payer from the first day of a month following the month when applied Or after awarding him taxpayers registration number. A tax body issues a certificate of a payer Can be delisted as a payer of the VAT. When?

Taxes and Accounting VAT Registration Threshold Created by Bektursynova Aibike

Taxes and Accounting Taxable Turnover Amount earned during the normal company operations such as sale of goods and services, property sale, shipment of goods Are goods that are being or have been imported into the Territory of Republic of Kazakhstan. Includes: The custom payment and taxes of imported goods based on current legislation Amount of taxes and other mandatory payments payable to the budget Taxable Import ! Note: Export of goods is taxed at 0 % rate

Taxes and Accounting Problem 2: The company imports 1200 chandeliers. Each is priced at 3200 KZT. The firm paid custom duties in the amount of 8000KZT and 1200 KZT. Please calculate the amount of VAT to be paid Solution: VAT = (3200* ) * 12% = KZT

Taxes and Accounting VAT Exemptions State postal and excise stampsProperty bought for a public useTurnover from the sale of lottery ticketsBanking Services Transactions with derivativesPension funds' assets

Taxes and Accounting Property under a leasing Services by non-profit org Cultural Scientific Educational Medical and Veterinary Problem 3: Hospital delivered medical services for tg, including KZT Calculate the VAT? VAT Exemptions

Taxes and Accounting Invoice Mandatory document for all payers of the VAT Exceptions: Settlements for municipal services Passenger travel tickets Cash Transactions at the register