In Kyrgyzstan, discussions are underway regarding which goods will be subject to special VAT treatment

In Kyrgyzstan, a new regulation has been put out for public comment that defines which goods may be included in a special list for calculating the VAT tax base.

The document was prepared by the State Tax Service and concerns goods with elevated tax risks—for example, where there are suspicions of undervaluation during import or sale.

According to the draft, a good may be included in such a list (meaning VAT will be calculated separately for it) if one or more of the following grounds exist:

• a substantiated request has been received from businesses, associations, or government agencies;
• the risk management system has identified a possible understatement of the tax base;
• tax audits have confirmed instances of undervaluation;
• imports of the goods have surged sharply, while prices deviate from market rates.

Conversely, goods may be removed from the list if:

• they are no longer being imported;
• tax risks have decreased;
• audits have confirmed that prices are being reported correctly;
• other grounds have emerged based on the analysis of tax data.

Applications may be submitted to the tax authorities in either written or electronic form. They will be reviewed within 30 days, after which a decision will be made on whether to include the goods in the list.

The list itself will be regularly reviewed and published on the official website of the tax service.