Tax rate by region Kyrgyzstan

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Understanding SaaS VAT in Kyrgyzstan: A Comprehensive Guide for Businesses

Kyrgyzstan, like many other countries, has implemented a Value Added Tax (VAT) system to ensure fairness and transparency in its tax administration. Since 1992, businesses in Kyrgyzstan have been subject to a standard VAT rate of 12%, applicable to a wide range of goods and services, including Software as a Service (SaaS). This guide aims to provide comprehensive information on SaaS VAT regulations in Kyrgyzstan, offering practical guidance to businesses navigating this tax landscape.

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Kyrgyzstan

Kyrgyzstan implemented a VAT system in 1992 to modernize its tax administration and enhance compliance.

Official government link: State Tax Service

12.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

No digital goods or services with reduced tax rate

Exempted product categories

No digital goods or services exempt

Reverse charge mechanism for B2B sales

No 

Tax ID validation required

Yes

When do you have to register

Before commencing any taxable activity

Online registration possible

Yes

Local representative needed

No

Registration procedure

To register for VAT in Kyrgyzstan, businesses need to submit a paper application to the appropriate local tax office. This can be done either in person or through a representative. Along with the application, all necessary supporting documents must be provided. The tax office will process the application within 5 days and then decide on issuing a VAT registration number.

List of digital and electronic services liable for tax

Web hosting services
Downloadable and streaming music
Cloud-based software
E-books
Online advertising
Images, movies, and videos

Penalties

If VAT returns are not submitted on time or the related tax is not paid by the due date, the tax authority may impose a default surcharge penalty. The penalty for late payment is 0.09% per day, while the penalty for late submission ranges from 5,000 to 13,000 soms.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Quarterly

Filing deadline

By the 20th of the subsequent month.

E-invoicing requirements

Not specified

Record keeping

Invoices: Include your business name, address, VAT registration number, invoice date, sequencing number, buyer’s name and address, buyer’s VAT registration number (if applicable), VAT amount and rate applied to each item, and the final amount after tax1.
Annual Accounts: Profit and loss accounts, balance sheets, and other financial statements.
Bank Statements: Including paying-in slips.
Cash Books: Records of all cash transactions.
Credit or Debit Notes: Issued or received

How-To Guides: Kyrgyzstan SaaS VAT

Step: 1 Threshold

Effective January 1, 2022, Kyrgyzstan requires non-resident vendors of digital services to customers (B2C and B2B) in Kyrgyzstan to register for and collect VAT, regardless of the sales amount.

 

On June 10, 2022, the Kyrgyzstan State Tax Service announced the launch of an online service (vat.salyk.kg) for the VAT registration of non-resident digital services providers.

Step: 2 Business Registration

Foreign digital providers register via the “VAT Office of a Foreign Organization” (simplified regime). No local physical incorporation or presence is required.

Step: 3 TIN/VAT Number

A local TIN (Tax Identification Number) is issued by the State Tax Service upon successful online registration.

Step: 1 Standard VAT Rate

The standard VAT rate in Kyrgyzstan is 12%.

Step: 2 VAT Formula

To calculate your tax amounts, use the following formula:

 

Tax Amount = Net Price x 12%

Step: 3 Reverse Charge (B2B)

Kyrgyzstan does not typically apply the Reverse Charge Mechanism for foreign digital services. Non-resident providers are generally required to register and pay VAT on both B2B and B2C transactions.

Step: 1 Selling B2C

The seller must charge 12% VAT at the point of sale based on the customer’s location (IP address, billing address, or bank card country).

Step: 2 Selling B2B

Seller must collect the buyer’s TIN. Unlike many other regions, the seller remains responsible for the VAT even for business buyers.

Step: 3 Invoice Requirements

Foreign providers must issue invoices via the VAT Office portal or their own system containing:

  • Supplier/Buyer Name
  • TIN
  • Invoice Date/Number
  • Description of Service
  • Currency (KGS)
  • VAT Rate
  • Total Amount.

Step: 1 Filing Interval

Taxes should be filed quarterly.

Step: 2 Filing Deadline

Taxes must be filed no later than the 20th day of the month following the reporting quarter.

Step: 3 Submission

Taxes are filed online through the vat.salyk.kg portal. Payments are made via bank transfer to specific multi-currency accounts provided by the Ministry of Finance.

Step: 4 Record Keeping

All tax records should be kept for a minimum of 5 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Kyrgyzstan’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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