Kazakhstani residents to bear 12% VAT cost for ChatGPT subscriptions
Changes to VAT and Tax Registration in Kazakhstan: OpenAI to Comply with New Rules
In a significant development, OpenAI has completed its registration as a tax payer with the Ministry of Finance of the Republic of Kazakhstan, effective from May 2025. This registration comes in the wake of critical changes to the VAT and tax registration system, introduced by the new Tax Code signed on July 18, 2025, and set to take effect from January 1, 2026.
One of the key changes is the reduction of the VAT registration threshold to 40 million Kazakhstani tenge (KZT), as defined by the Monthly Calculation Index (MCI). This means that entities with a turnover below this amount will be exempt from compulsory VAT registration.
The standard VAT rate under the new Tax Code has been set at 16%, a decrease from previous higher levels. However, VAT exemptions remain for socially important food products, book publishing, archaeological services, and certain medicines. Medical services will continue to be subject to a 10% VAT rate.
The number of special tax regimes has been reduced to three, focusing on self-employed, entities under simplified declaration regimes, and farmers. This move is aimed at simplifying tax administration.
OpenAI, upon registering as a taxpayer, will be subject to the new VAT rate of 16% on taxable supplies unless falling under exemptions. The company will also need to comply with the lower VAT registration threshold of 40 million KZT turnover. The simplified tax administration model and digitalized control measures also apply, aiming to enhance transparency and reduce reporting burden.
These changes reflect the broad tax reform goals to modernize Kazakhstan’s tax system, simplify procedures, and stimulate economic growth.
Additionally, it has been announced that from August 1, 2025, legal entities and individual entrepreneurs registered as VAT payers in Kazakhstan can avoid paying the tax by specifying their BIN in the tax data section of their account. If the BIN is not specified by this date, the tax amount will be included in the payment for individuals.
It is important to note that the ChatGPT Plus tariff will increase from $20 to $22.40 per month due to the VAT. OpenAI will start charging VAT for users in Kazakhstan from August 1, 2025.
These changes in the tax system are expected to have a significant impact on businesses and individuals in Kazakhstan. It is advisable for all concerned parties to familiarise themselves with the new regulations and take necessary steps to comply with them.
[1] https://investment.gov.kz/en/news/kazakhstan-tax-code-adopted-president-nursultan-nazarbayev [2] https://www.kazpravda.kz/ru/news/economy/view/novyj-nacalnyj-stavka-nds-v-kazahstane-sostavil-16-proc [3] https://www.kazakhtimes.kz/article/58652-new-tax-code-to-lower-nds-rate-and-simplify-tax-regimes [4] https://www.kazakhtimes.kz/article/58633-vat-threshold-to-be-reduced-to-40-mln-tenge [5] https://www.kazpravda.kz/ru/news/economy/view/v-kazahstane-sozdaetsya-treh-spetsialnyh-nadzorovyh-rezhimov-po-nds
- As a result of the updated Tax Code in Kazakhstan, OpenAI, now registered as a tax payer, will need to comply with VAT changes, specifically the new standard rate of 16% on taxable supplies and the lowered VAT registration threshold of 40 million Kazakhstani tenge.
- The changes in Kazakhstan's tax system, including the reduction of VAT registration threshold and the implementation of special tax regimes, are anticipated to significantly affect businesses and individuals, necessitating familiarization with the new regulations and adherence to them.
