Kazakhstan insists on residency principle in EEU Customs Code
The official noted that Kazakhstan had sent its proposals through official channels in favor of preserving the residency principle. In other words, Kazakhstan would like taxpayers to go through customs clearance procedures in the country the taxpayers are registered in, noted Daulet Yergozhin. He explained that if a taxpayer in Kazakhstan, for instance, is allowed to go through customs clearance procedures and pay the value-added tax in any Eurasian Economic Union member state, then Kazakhstan authorities wonder which country will have to return the VAT if the taxpayer returns the goods.
Daulet Yergozhin stated that the taxation system within the framework of the Customs Union is built around the interstate treaty on indirect taxes. The treaty has been ratified by the parliaments and clearly outlines the procedure for keeping records of the goods that are transported across the state border. "In our opinion the removal of the residency principle in the Eurasian Economic Union bears high risks of goods redistribution. It may enable conditions conducive to smuggling, including tax evasion schemes. This is why we have submitted proposals to remove the matter from the agenda," he noted.
Partners are in consultations. A working meeting is scheduled to take place in Astana next week, during which the Kazakh side will stipulate its concerns about the matter in detail. "We may be convinced to change our minds but for now we can see these risks and would like to minimize them," stated Daulet Yergozhin.
In turn, head of the Russian customs service Andrei Belyaninov noted that the other Eurasian Economic Union member states are interested in the experience of Kazakhstan and Armenia in creating a united state revenue service, which combines taxation and customs branches. "This experience may be one step ahead of at least Russia. They have combined their databases and understand how to collect direct and indirect taxes," he explained. The official stated that Kazakhstan's stance with regard to the residency principle is substantiated and deserves closest attention although the position is open to question, BelTA reports.
