Foreign Digital Companies Pay Kazakhstan $390 Million in VAT
Foreign digital companies have paid 178.8 billion tenge, equivalent to approximately US$390.2 million, in value-added tax (VAT) in Kazakhstan since 2022, reflecting a more than fivefold increase in annual collections over the past three years.
The revenue has been collected under Kazakhstan’s so-called Google tax, which requires foreign companies providing digital services or selling goods online directly to consumers in the country to register for VAT and make tax payments.
The figures highlight the growing contribution of international digital platforms to Kazakhstan’s tax revenues. However, they do not represent the country’s total digital consumption or cross-border e-commerce activity, as the mechanism applies to both digital services and goods sold through online platforms.
Kazakhstan introduced the VAT rules for foreign internet companies in 2022. The system covers businesses offering software, entertainment, gaming, education and other digital services, as well as companies selling goods through online marketplaces.
The tax framework is intended to ensure that foreign digital businesses serving consumers in Kazakhstan meet the same VAT obligations applicable to relevant domestic activities.
