Kyrgyz Republic confirms non-residents subject to VAT obligations

2 March 2022

Kyrgyzstan recently confirmed that from January 2022, VAT will be applied on the sale of e-services to local Kyrgyz consumers by non-resident businesses.

Before January, non-resident businesses providing digital services did not have to charge VAT on their sales in the country. However, to remove the unfair advantage this gave to non-resident companies over resident providers, the Kyrgyzstan tax authorities confirmed that VAT will be charged at 12% on these types of supplies.

The new tax will require foreign providers of electronic services to register through a new simplified registration process from the first sale they make and will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals, software, and internet services.