From January 1, 2019, the exemption of gambling business from VAT and the Tax Code of Kazakhstan has officially ended. However, If the VAT for Kazakh bookmakers is not abolished, the industry will face difficulties.
Experts say that support of sports by bookmakers will be terminated. It is also expected that unemployment, corruption and shadow economy will increase.
The introduction of VAT for betting companies in Kazakhstan does not correspond to international practice of the European Union, Russia, and Belarus, and does not comply with the legislation of Kazakhstan as well.
The experts explain that some businesses should not be subjects to VAT by the nature of their activities. For example, banks and financial organizations when they carry out lending operations or gambling businesses when they offer betting operations since neither lending operations no bets refer to goods, works, and services.
