Kazakhstan's New Tax Code: VAT on Medicines 5% in 2026, 10% in 2027
The new Tax Code in force since 1 January 2026 raised the standard VAT rate to 16%. The reduced rate for medicines and medical devices rises to 10% in 2027.
The Tax Code of the Republic of Kazakhstan No. 214-VIII of 18 July 2025 entered into force on 1 January 2026. It raised the standard VAT rate from 12%, applied until 31 December 2025, to 16%.
A reduced rate applies to medicines, medical devices and medical device components: 5% in 2026 and 10% from 1 January 2027. Medicines supplied under the guaranteed volume of free medical care (GOBMP), compulsory social health insurance (OSMS) and for the treatment of orphan and socially significant diseases are exempt from VAT; according to Forbes Kazakhstan, more than 3,000 medicine names fall under this exemption.
According to Forbes Kazakhstan on 11 August 2026, at the 24th meeting of the Project Office for implementing the Tax Code, chaired by Deputy Prime Minister Serik Zhumangarin, the National Chamber of Entrepreneurs "Atameken" proposed a single 5% VAT rate for all medicines and medical devices and a full exemption for medical services. Participants agreed to meet again after analysing the impact on the budget, the healthcare sector and access to medicines; the proposal has not been enacted. For suppliers to the Kazakh market, the rate change on 1 January 2027 is a date to build into contracts and price planning.
Source: Tax Code of the Republic of Kazakhstan No. 214-VIII of 18 July 2025 (announcement on the public procurement portal goszakup.gov.kz); PRG (Paragraph) legal information system, 27 January 2026; Forbes Kazakhstan, 11 August 2026.