Fiscal monitoring mechanism

The Eurasian Economic Commission is actively discussing the implementation of the fiscal monitoring system. The purpose of this mechanism is to automatically confirm the zero VAT rate, switch to the electronic format of the Application for payment of indirect taxes, and ensure transparency of the movement of goods in mutual trade of the EAEU.

As part of the discussions, the Kazakhstani side presented the mechanism of operation of accompanying invoices for goods (AIG) in the Republic of Kazakhstan in order to implement the mechanism of fiscal monitoring. The parties conceptually supported the Kazakhstan approach. In fact, the taxpayer has the opportunity to apply electronic invoices for the shipment and movement of goods for which the mandatory application of the AIG has been introduced. As well as avoid the need to provide copies of paper invoices to the customs and tax authorities.

The mechanism being developed in the EAEU should simplify the procedure for confirming the application of a zero VAT rate and VAT refunds when exporting goods, as well as significantly reduce the administrative burden on business through the mutual exchange of information between the tax authorities of the EAEU member states. Digitalization of tax administration processes will contribute to the transparency of the control system for the movement of goods in the EAEU .

In addition, consumers will have access to reliable information about the quality characteristics of goods, the legality of their import and production.

Recall that at the meeting of the Eurasian Intergovernmental Council, held on October 9, 2020, the Prime Minister of the Republic of Kazakhstan A. Mamin was asked to “work out the issue of digitalization of tax administration in mutual trade through the EAEU digital integration platform and expanded electronic interaction of tax and customs authorities of the EAEU member states."