State Tax Service Implements New Document Forms to Enhance VAT Administration

The State Tax Service of the Kyrgyz Republic presented new forms of documents within the framework of improving VAT administration. Innovations touched upon the information system ‘Electronic Invoice’, where forms were introduced to facilitate tax accounting for agricultural producers and entrepreneurs.

Among the innovations is the form of electronic invoice (BLANK STI-110), which allows taxpayers to independently execute the purchase of agricultural products on behalf of the buyer. This form is also in demand for entrepreneurs operating in markets included in a special register. It is important that the number of the electronic consignment note should be indicated in the note of the ESF. To increase convenience, a form of primary accounting document (BLANK STI-109) is introduced. It is used when prepayments are received, bad debts are written off and VAT registration is terminated. The form allows electronic transactions related to ‘advance payment’, ‘balance’ and ‘debt’, which eliminates the need to manually indicate the amounts of advances in VAT reports.

According to the statutory provision, VAT liability arises from the moment of receipt of prepayment for a taxable supply, but agricultural producers are exempt from VAT. Such norm has existed since the first edition of the Tax Code since 1996. These innovations contribute to increased transparency in accounting for produced and sold agricultural products and improve VAT administration.