Government Decree No. 542 amends existing VAT rules for medical services, medicines and pharmaceutical products, expands the lists of eligible goods and introduces new compliance requirements for importers.
The Government of Kazakhstan has adopted Government Decree No. 542, signed on 24 June 2026, introducing amendments to two existing regulations governing Value Added Tax (VAT) treatment for medical services, medicines and pharmaceutical products.
The decree updates Government Decrees No. 1203 and No. 1204 of 2025, expanding VAT exemptions, revising the list of goods eligible for reduced VAT rates and strengthening import compliance requirements.
VAT exemption rules expanded
The amendments to Government Decree No. 1203 revise the framework for VAT-exempt medical services and products provided under the guaranteed volume of free medical care, compulsory medical insurance, or for the treatment of orphan and socially significant diseases.
The decree introduces a single, comprehensive definition of laboratory diagnostics, bringing together a broad range of diagnostic services, including clinical, bacteriological, biochemical, haematological, genetic and other forms of laboratory research.
The list of VAT-exempt medicines has also been expanded to include additional products eligible for exemption on both domestic sales and imports. Newly listed medicines include Human C1-esterase inhibitor (lyophilizate for injection) and various enzyme preparations.
In addition, the decree establishes updated procedures for applying VAT exemptions to imported medicines, setting out detailed documentation and administrative requirements.
Reduced VAT rate list revised
Government Decree No. 1204 has been amended to update the list of medical products and pharmaceutical raw materials subject to reduced VAT rates instead of full exemption.
The applicable VAT rate is set at 5% from 1 January 2026, increasing to 10% from 1 January 2027.
The revised list significantly expands the range of qualifying products. Newly included items cover pharmaceutical production materials, industrial ingredients, diagnostic products, medical consumables and manufacturing equipment.
Among the additions are pharmaceutical chewing gum, pure sodium chloride, sea water, inorganic and organic chemical compounds, diagnostic reagents, specialised rubber tubes, medical gloves, medical-grade paper and cardboard, cotton wool, medical masks, tourniquets, orthotic braces, pharmaceutical footwear and headwear, glass vials and ampoules, needles, sterilisation boxes, laboratory heating and cooling equipment, industrial scales, corrective glass and plastic lenses, and thermoses used in pharmaceutical production.
New import compliance requirements
The decree also introduces revised conditions for obtaining VAT exemptions or reduced VAT rates on imported medical goods.
Importers must hold valid pharmaceutical or medical activity licences. Registered medicines must be supported by a registration certificate issued in Kazakhstan or the Eurasian Economic Union (EAEU), while unregistered medicines require the relevant state authorisation.
To receive the tax benefit, importers must also submit an Obligation of Target Use, confirming that the imported goods will be used exclusively for medical or pharmaceutical purposes within the state healthcare programmes covered by the regulations.
Where imported goods are subsequently used for purposes outside the approved healthcare framework or exported, except in cases of re-export, the importer must pay the full amount of VAT together with any applicable interest and penalties.
Government Decree No. 542 entered into force on 24 June 2026, the date of its signing. However, specific provisions relating to certain medical import procedures are scheduled to take effect on 12 July 2026.
