Tax Code of Kazakhstan provides that the exemption of gambling business from VAT, which has been in effect since Kazakhstan gained independence, ends on January 1, 2019. Bookmakers are not happy with it, ZAKON.KZ reports.
According to the business community, public organizations, as well as international consulting companies, the introduction of VAT for betting companies in Kazakhstan does not correspond to international practice of the European Union, Russia and Belarus, and does not comply with legislation of Kazakhstan as well.
The experts explain that some businesses should not be subjects to VAT by nature of their activities. For example banks and financial organizations when they carry out lending operations or gambling businesses when they offer betting operations, since neither lending operations no bets refer to goods, works and services.
If the VAT for Kazakh bookmakers is not abolished, the industry will face difficulties. Experts say that support of sports by bookmakers will be terminated. It is also expected that unemployment, corruption and shadow economy will increase.
In 2018 bookmakers paid 14.4 billion tenge (about $37 million) of taxes, and there is a risk the amount will decrease dramatically if VAT is introduced.
