Kazakhstan's VAT Increase: A Double Blow to Medical SMEs

Kazakhstan's VAT Hike Slams Medical Businesses NUR-SULTAN, Kazakhstan – A recent increase in Value Added Tax (VAT) from 12% to 16% is creating significant challenges for small and medium-sized enterprises (SMEs) in Kazakhstan's medical industry. The new regulations, effective in 2025, prohibit VAT deductions when transacting with individual entrepreneurs (IEs), even if the IE is a VAT payer. This impacts businesses operating under simplified or special tax regimes. "This is a double blow," explains Zhanar Suleimenova, a public figure and business owner, in a recent YouTube interview. "Not only does the VAT increase affect our bottom line, but we can no longer deduct VAT from transactions with IEs. This makes it significantly more difficult for us to operate." The policy change has sparked concerns about rising medical product prices and the potential for reduced quality. Experts predict that the increase will disproportionately impact smaller businesses, potentially leading to increased costs for consumers. The government has yet to address these concerns publicly. The situation highlights the challenges faced by SMEs in navigating complex tax regulations and the need for greater transparency and support from government agencies.