- VAT rate increase from 12% to 20% on January 31, 2025
- Example of consequences for a business owner in the electrical installation industry
- Monthly income of 750,000 tenge per object, servicing 7 objects
- 2 employees with a total monthly salary of 515,000 tenge
- Simplified tax rate of 3%
- Monthly expenses of 28,000 tenge on consumables
- Profit of 184,500 tenge and profitability of 24.6%
- With VAT rate at 20% and turnover tax at 4%, profit drops by almost 7 times
- Business owner will operate at a loss due to increased costs and prices
- Negative impact on small and medium-sized businesses, leading to bankruptcy or operating in the shadow economy
Source: uchet.kz
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
