Published
02/21/2026, 11:27On 20 February 2026, the State Tax Service under the Cabinet of Ministers of the Kyrgyz Republic announced that it was stepping up efforts to identify cases of electronic invoices being issued without actual economic transactions. At the end of 2025, almost 270 individual entrepreneurs and companies involved in such schemes were identified.
As a result of the audits, over 3.744 billion KGS were additionally charged to the budget, including fines and penalties. These are fictitious electronic invoices that were issued without the actual delivery of goods or provision of services. Such documents made it possible to create fictitious expenses and reduce tax liabilities. According to the agency, the schemes were often built through a chain of interconnected persons, including so-called one-day companies to prolong VAT amounts.
To identify violations, the State Tax Service uses electronic analytics, automated control systems and a risk-based approach. Data from tax invoices, tax reports, export and import operations, bank transactions, warehouse and transport information are compared. In 2025, more than 50 tax service employees were dismissed for facilitating illegal schemes.
The agency reminded that the registration of an ESF is only permissible if there is a real economic transaction and confirmed movement of goods or services. The use of fictitious documents is subject to additional charges and double fines, and in the case of serious violations, criminal liability and suspension of activities are possible. Taxpayers are advised to submit revised reports if the transactions were of a formal nature.
