On the Ratification of the Protocol on Amendments to the Treaty on the Eurasian Economic Union of May 29, 2014 regarding the determination of the procedure for the collection of indirect taxes in the provision of services in electronic form

Home / RLA / On the Ratification of the Protocol on Amendments to the Treaty on the Eurasian Economic Union of May 29, 2014 regarding the determination of the procedure for the collection of indirect taxes in the provision of services in electronic form

On the Ratification of the Protocol on Amendments to the Treaty on the Eurasian Economic Union of May 29, 2014 regarding the determination of the procedure for the collection of indirect taxes in the provision of services in electronic form

The Law of the Republic of Kazakhstan dated February 22, 2024 No. 63-VIII SAM.

To ratify the Protocol on Amendments to the Treaty on the Eurasian Economic Union dated May 29, 2014 regarding the definition of the procedure for collecting indirect taxes in the provision of services in electronic form, signed in Bishkek on December 9, 2022.

President of the Republic of Kazakhstan

K. TOKAEV

PROTOCOL on Amendments to the Treaty on the Eurasian Economic Union of May 29, 2014 regarding the definition of the procedure for collecting indirect taxes in the provision of services in electronic form

The member States of the Eurasian Economic Union, hereinafter referred to as the Member States,

guided by article 115 of the Treaty on the Eurasian Economic Union of May 29, 2014,

have agreed on the following:

Article 1

To make the following amendments to the Treaty on the Eurasian Economic Union dated May 29, 2014:

1) add the words "in accordance with Annex No. 18 to this Treaty" to the first paragraph of paragraph 2 of Article 72;

2) in the Protocol on the procedure for collecting Indirect Taxes and the mechanism for monitoring their payment during the Export and Import of Goods, Performance of Works, and Provision of Services (Appendix No. 18 to the said Agreement):

paragraph 2 after the twenty-first paragraph should be supplemented with the following paragraph:

"services in electronic form" - services that are provided through an information and telecommunication network (telecommunication network), including via the Internet, the provision of which is impossible without the use of information technology and the list of which is approved by the Council of the Commission;";

Paragraph 28 should be supplemented with the following paragraphs:

"To a taxpayer (organization or individual entrepreneur) of one Member State who is registered with the tax authority of another Member State only in connection with the opening of a bank account and (or) the presence in this other Member State of immovable property, and (or) vehicles, and (or) a representative office that does not performs works (does not provide services), the place of implementation of which is the territory of this other Member State, is not obligated to submit tax returns and pay VAT to the budget of this other Member State.

When the taxpayer specified in the third paragraph of this paragraph performs (provides) works (services), the place of sale of which is recognized as the territory of this other member State, the taxpayer-buyer (organization or individual entrepreneur) registered with the tax authority of this other member state is obliged to calculate for such works (services) and to pay (withhold, if this is established by the legislation of this other Member State) to the budget of this other Member State the corresponding amount of VAT.

When the taxpayer specified in the third paragraph of this paragraph performs (provides) works (services), the place of sale of which is recognized as the territory of this other Member State, the buyer is an individual who is not an individual entrepreneur, who does not calculate and pay (withhold) the corresponding amount of VAT to the budget of this other Member State.

The collection of VAT for the provision of services in electronic form is carried out in accordance with the procedure set out in the annex to this Protocol.";

in paragraph 29:

in subparagraph 4:

Add the words "(except for services in electronic form)" to the second paragraph after the word "information".:

The third paragraph should be worded as follows:

"works and services related to the development of software for any type of electronic devices and databases (software and information products for any type of electronic devices), their adaptation and modification, maintenance (maintenance) and refinement of such programs and databases (except for services in electronic form);";

Add the words "(except for services in electronic form)" to the sixth paragraph.;

add the following paragraph:

"provision of services in electronic form (the place of business of the buyer of such services is determined in accordance with the annex to this Protocol);";

add subparagraph 6 as follows:

"6) the taxpayer of this Member State performs the work and provides the services provided for in subparagraph 4 of this paragraph (with the exception of services in electronic form), which are purchased by an individual who operates or permanently resides in another Member State and is not an individual entrepreneur.";

The first paragraph of paragraph 30 should be supplemented with the words "(unless otherwise provided by this Protocol)";

add the following appendix:

"Annex to the Protocol on the procedure for collecting Indirect Taxes and the mechanism for Monitoring their Payment during the Export and Import of Goods, the Performance of Works, and the Provision of Services

THE PROCEDURE for collecting value added tax when providing services in electronic form

I. General provisions

1. This Procedure has been developed in accordance with article 72 of the Treaty on the Eurasian Economic Union (hereinafter referred to as the Treaty) and the Protocol on the Procedure for Collecting Indirect Taxes and the Mechanism for Controlling their Payment when Exporting and Importing Goods, Performing Works, and Providing Services (Appendix No. 18 to the Treaty) (hereinafter referred to as the Protocol). - Protocol) and defines the procedure for collecting VAT when providing services in electronic form by a taxpayer of one member State to a taxpayer of another member State, as well as to individuals (who are not individual entrepreneurs and taxpayers in accordance with the legislation of another member state, but comply with the conditions for determining the place of business provided for in paragraph 6 of this Procedure).

2. The concepts used in this Procedure are applied in the meanings defined by the Protocol.

II. Formation of the list of services in electronic form

3. The Member States shall draw up a list of services in electronic form, which shall be approved by the Council of the Commission.

4. For the purposes of applying this Procedure and the Protocol, services in electronic form do not include, in particular:

1) sale of goods (works, services) if, when ordering through an information and telecommunication network, including via the Internet, the delivery of goods (performance of works, provision of services) is carried out without the use of such an information and telecommunication network;

2) realization (transfer of rights to use) software for any type of electronic devices (including computer games) on tangible media and (or) databases on tangible media;

3) provision of services for providing access to the information and telecommunication network, including the Internet.

III. Determination of the place of activity of the buyer of services in electronic form

5. The territory of a Member State is recognized as the place of activity of an organization that purchases services in electronic form, if one of the following conditions is met::

1) the organization carries out activities in the territory of a member State on the basis of state registration, except for the cases provided for in subparagraphs 2 and 3 of this paragraph;

2) services have been provided to a branch, representative office, or permanent mission of an organization located in that Member State, which is not the place of state registration of that organization, or purchased for such branch, representative office, or permanent mission of the organization and consumed by it;

3) the location of the permanent executive body (management office) of the organization is located in this member State, which is not the place of state registration of this organization, and in this member State the organization's business activities are actually carried out, as well as services are consumed.

6. The territory of a Member State shall be recognized as the place of activity of an individual, including an individual entrepreneur, who purchases services in electronic form, if one of the following conditions is met::

1) the buyer's place of residence (place of permanent or preferential residence) is located in that Member State;

2) the location of the bank in which the account is opened, used by the buyer to pay for services, or the electronic money operator through which the buyer pays for services is located in the territory of this Member State.;

3) the network address of the buyer used in the purchase of services is registered in this Member State (refers to the corresponding address space);

4) the international country code of the telephone number used by the buyer to purchase or pay for services is assigned by that Member State.

7. The place of activity of an individual entrepreneur who purchases services in electronic form shall be determined on the basis of the conditions provided for in paragraph 5 of this Procedure, applicable to organizations, if this is established by regulatory legal acts of the member State in which the individual entrepreneur is registered, adopted after the entry into force of this Procedure.

8. If, in accordance with the conditions provided for in paragraph 6 of this Procedure, the territories of more than one Member State can be recognized as the place of business of an individual purchasing services in electronic form, the seller determines the place of business of such an individual based on simultaneous compliance with more of these conditions in the territory of the Member State.

Subject to the simultaneous observance of an equal number of conditions specified in paragraph 6 in the territories of several Member States, the seller independently determines the place of business of such an individual based on the approaches applied by him to an unlimited range of buyers of services in electronic form.

IV. Payment of VAT for the provision of services in electronic form

9. For the purpose of paying VAT, a taxpayer of one Member State who provides services in electronic form to individuals whose place of business is recognized as the territory of another Member State is subject to registration with the tax authority of that other Member State, with the exception of the cases provided for in paragraph 11 of this Procedure. Registration is carried out by using the information resource of the specified tax authority on the Internet (hereinafter referred to as the information resource) or, if this is provided for by the legislation of the member State, by conditional registration with the tax authority of the member state whose territory is the place of sale of such services.

10. For the purpose of paying VAT, a taxpayer of one Member State who provides services in electronic form to organizations and (or) individual entrepreneurs whose place of business is recognized as the territory of another Member State, with the exception of the cases provided for in paragraph 11 of this Procedure, is subject to registration with the tax authority of that other Member State, if such an obligation It is provided for by the legislation of this other Member State.

If the obligation to register a taxpayer-seller with the tax authority of a Member State whose territory is the place of sale of services in electronic form is not provided for by the legislation of such Member State, then the obligations to calculate and pay (withhold) VAT is carried out by organizations and (or) individual entrepreneurs who purchase services in electronic form, in accordance with the procedure provided for by the legislation of their member State.

If the taxpayer sellers have not registered with the tax authority of such other Member State (in the case where the obligation to register is provided for by the legislation of the Member State at the place of the buyer's business), then the obligation to calculate and pay (withhold) VAT is carried out by organizations and individual entrepreneurs who purchase services in electronic form, in accordance with the procedure provided for by the legislation of their member State.

If the legislation of the Member State that is recognized as the buyer's place of business provides for registration with the tax authority of such Member State only on grounds related to the provision of services in electronic form to individuals, including individual entrepreneurs, or individuals who are not individual entrepreneurs, but the taxpayer-seller provides such services. services for both individuals, including individual entrepreneurs, and organizations, in respect of services acquired by organizations and (or) individual entrepreneurs in electronic form, the obligation to calculate and pay (withhold) VAT is carried out by such organizations and (or) individual entrepreneurs who purchase services in electronic form, in accordance with the procedure provided for by the legislation of the Member State, which is recognized as the place of business of the buyer.

The list of organizations providing services in electronic form must be posted on the official websites of the tax authorities of the member states on the Internet, indicating the date of registration of these organizations with the tax authorities of the member state in which the services are purchased in electronic form, the registration number of the payer, or the taxpayer identification number, or the taxpayer registration number (if available).

11. When a taxpayer of one Member State provides services in electronic form, the place of sale of which is recognized as the territory of another Member State, through the mediation of an organization (individual entrepreneur) registered with the tax authorities of this other member state, participating in settlements directly with buyers of such services in this other Member State on the basis of an agreement with the taxpayer, providing services in electronic form, calculation and payment (retention) VAT is paid by such an intermediary in the calculations, and not by the taxpayer., providing services in electronic form.

When a taxpayer of one Member State provides " services in electronic form, the place of sale of which is recognized as the territory of another Member State, through the mediation of an organization (individual entrepreneur) registered with the tax authorities of the first member state or with the tax authorities of other member states whose territory is not recognized as the place of sale of such services, in settlements directly with purchasers of such services in that other Member State on the basis of an agreement with such a taxpayer providing services in electronic form, calculation and payment (withholding) VAT is paid by such an intermediary in the calculations, and not by a taxpayer providing services in electronic form, if the obligation to register and pay tax in this other Member State arises for such a taxpayer in accordance with paragraphs 9 and 10 of this Procedure.

In the case of the provision of services in electronic form with the participation of several intermediaries in the calculations, calculation and payment (retention) VAT is paid by the one who directly performs calculations with the buyer, regardless of whether such an intermediary has an agreement with the taxpayer-seller in the calculations.

In the cases specified in paragraphs one to three of this paragraph, the requirements of this Procedure for registration with the tax authority of another Member State, the submission of tax returns, the payment of VAT and the performance of other duties defined by this Procedure for the taxpayer, apply to the specified intermediary in the calculations.

The provisions of this paragraph do not apply to cases where a taxpayer-seller provides services in electronic form independently, as well as through its branch, representative office, permanent establishment located in a Member State that is the place of sale of services in electronic form.

12. When providing services in electronic form, the procedure for registration (de-registration) with the tax authority of taxpayers providing such services and intermediaries in the calculations specified in paragraph 11 of this Procedure, the tax base, VAT rates, the procedure for calculating and timing VAT payments, tax benefits (tax exemptions), as well as the procedure for refunds (offsetting) of overpaid VAT amounts are determined in accordance with the legislation of the Member State whose territory is recognized as the place of sale of such services, unless otherwise provided for in paragraph 15 of this Procedure.

13. If a taxpayer of one Member State is registered with the tax authority of another Member State to pay VAT on services in electronic form provided in the territory of that other Member State, and at the same time performs other operations for the implementation of works and services provided for in subparagraphs 1-4 of paragraph 29 of the Protocol, the place of implementation of which is recognized as the territory of that other Member State. for these other transactions, VAT is paid in accordance with the procedure specified in paragraphs 9 and 10 of this Procedure, unless otherwise established by the legislation of this other Member State.

14. If a taxpayer of one Member State is subject to registration or is registered with the tax authority of another Member State on the grounds specified in paragraphs 9-11 of this Procedure, he/she shall submit to the tax authority an appropriate tax return in the form established by the legislation of the member State whose territory is recognized as the place of sale of services, or in a form approved by the competent authority of that Member St 14. If a taxpayer of one Member State is subject to registration or is registered with the tax authority of another Member State on the grounds specified in paragraphs 9-11 of this Procedure, he/she shall submit to tax authority an appropriate tax return in the form established by the legislation of the memtate whose territory is recognized as the place of sale of services, or in a form approved by the competent authority of that Member State. The specified tax rcified tax return is submitted to the tax authority through the information resource of the tax authority of the member state, the territory of which is recognized as the place of sale of services.

If the tax return is not submitted in accordance with the legislation of the Member State, the taxpayer shall pay VAT by the due date without fulfilling the obligation to submit to the tax authority the tax return provided for in the first paragraph of this paragraph.

As part of the control measures, the tax authority of the member state whose territory is recognized as the place of sale of services in electronic form has the right to demand from the taxpayer providing such services the information necessary to confirm the place of sale of services, completeness and t

The requested documents must be submitted to the requesting tax authority in electronic form within 30 calendar days from the date specified in the tax authority's request. Based on the taxpayer's application, the tax authority may extend the deadline for submitting information and (or) payment documents.

15. When a taxpayer of one Member State provides services in electronic form and performs other operations for the implementation of works and services provided for in paragraphs 1 - 4 of paragraph 29 of the Protocol, the place of implementation of which is recognized as the territory of another Member State, the moment (date) of determining the tax base is the last day of the quarter or month (if the tax period according to the legislation of the member state is a month) in which payment (partial payment) for services rendered (work performed) or payment (partial payment) for the upcoming provision of services (performance of work).

When determining the tax base, the cost of the specified services (works) in a foreign currency is converted into the national currency at the exchange rate of the national (central) bank of the Member State on the date corresponding to the moment (date) of determining the tax base, unless otherwise established by the legislation of the Member State, the territory of which is recognized as the place of sale of such services (works).

16. Prior to the creation of information resources provided for in paragraphs 9 and 14 of this Procedure, organizations providing services in electronic form, or organizations through which such services are provided, have obligations to calculate and pay (withhold) There is no VAT.

Such an obligation is imposed, respectively, on an organization (individual entrepreneur) that purchases services in electronic form, if this obligation is provided for by the legislation of the Member State whose territory is the place of sale of services in electronic form.

The provisions of this paragraph do not apply to a taxpayer-seller who has carried out conditional registration with the tax authority of a member state, the territory of which is the place of sale of services in electronic form.".

Article 2

This Protocol shall enter into force on the date of receipt by the depositary, through diplomatic channels, of the last written notification that the Member States have completed the internal procedures necessary for its entry into force.

Done in Bishkek on December 9, 2022, in one original copy in Russian.

The original copy of this Protocol shall be kept in the Eurasian Economic Commission, which, as the depositary of this Protocol, will send a certified copy to each Member State.

For the Republic of Armenia

For the Republic of Belarus

For the Republic of Kazakhstan

For the Kyrgyz Republic

For the Russian Federation

I hereby certify that this text is a complete and authentic copy of the Protocol on Amendments to the Treaty on the Eurasian Economic Union dated May 29, 2014 regarding the determination of the procedure for collecting indirect taxes in the provision of services in electronic form, signed on December 9, 2022 in Bishkek.:

for the Republic of Armenia - Prime Minister of the Republic of Armenia Nikol Pashinyan;

for the Republic of Belarus - President of the Republic of Belarus Alexander Lukashenko;

for the Republic of Kazakhstan - by the President of the Republic of Kazakhstan K. K. Tokayev;

for the Kyrgyz Republic - President of the Kyrgyz Republic S. N. Japarov;

for the Russian Federation - President of the Russian Federation Vladimir Putin.

The original copy is kept at the Eurasian Economic Commission.

Director

Legal Department

Of the Eurasian Economic Commission

V. I. Taraskin

President

Republic of Kazakhstan

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