It’s no secret that the VAT rate in Russia is 8% higher than in Kazakhstan.
- Kazakhstan VAT rate: 12%
- Russia VAT rate: 20%
At first glance, everything seems logical: a common economic zone, meaning you can clear goods in Kazakhstan and then freely import them into Russia for resale. Sounds great — but in reality, things are not as simple as they seem.
Let’s break down how VAT works when importing goods within the EAEU (Eurasian Economic Union).
How VAT Works Between Kazakhstan and Russia
When trading between Kazakhstan and Russia, the contract or invoice amount must not include VAT.
Example:
You import goods and clear them through customs in Kazakhstan. Then you sell them to a Russian company.
The contract or invoice amount must exclude VAT.
Afterward:
- Your buyer (the Russian company) pays VAT directly to the Russian treasury.
- You, as the seller, apply for a refund of the VAT that was paid during customs clearance in Kazakhstan.
Important Note
The buyer will still need to pay VAT in their own country.
Therefore, trying to add VAT to the invoice total and skip the refund procedure is not economically justified.
VAT Refund
The refund process is not overly complicated — but it does require time and proper documentation.
Contact our experts to learn how VAT works in intra-EAEU trade and how to optimize your operations legally and efficiently.
