ChatGPT subscription fees for Kazakhstan residents include a 12% Value-Added Tax (VAT)
Kazakhstan Raises VAT Rate, Affecting Digital Services Like OpenAI Subscriptions
The Tax Code of Kazakhstan, signed by the Head of State on July 18, 2025, has introduced significant changes to the Value Added Tax (VAT) rates and requirements for digital services, such as OpenAI subscriptions.
Effective January 1, 2026, the standard VAT rate in Kazakhstan will increase from 12% to 16%, a change that will impact OpenAI subscriptions and other digital services. This rise in VAT rate is one of the key changes brought about by the new Tax Code.
The new Tax Code also sets a threshold for mandatory VAT registration at 40 million KZT in annual turnover. Entities not reaching this threshold may not be required to register for VAT immediately.
Several exemptions and exceptions have been outlined in the new Tax Code. Socially important food products, book publishing, archaeological services, and certain medicines are exempt from VAT, as are some other services yet to be approved. However, the VAT exemption for developers has been canceled, and paid medical services will now be subject to a 10% VAT. Bank commissions will also fall under VAT.
Digital services like OpenAI subscriptions are not explicitly mentioned in the list of VAT exemptions, suggesting they are likely subject to the new standard VAT rate of 16%.
The new Tax Code aims to simplify VAT procedures, including a streamlined VAT refund process and a move towards digital tax administration. This shift may affect how subscriptions are taxed and reported by service providers and consumers.
OpenAI, the provider of the popular AI model ChatGPT, completed its registration as a VAT payer with the Ministry of Finance of the Republic of Kazakhstan in May 2025. From August 1, 2025, OpenAI will include VAT in the subscription cost for users in Kazakhstan.
To avoid paying the VAT, entities are advised to provide their BIN in the tax data section of their OpenAI account by August 1, 2025. If the BIN is not provided, the tax amount will be included in the payment for individuals as well.
The ChatGPT Plus tariff will increase from $20 to $22.40 per month due to the VAT. OpenAI allows legal entities and individual entrepreneurs registered as VAT payers in Kazakhstan to avoid paying the tax.
These changes reflect Kazakhstan's broader shift to modernize and digitalize tax administration, increase VAT compliance, and bring tax rates in line with international standards.
- The new tax policy-and-legislation in Kazakhstan, introducing changes to Value Added Tax (VAT) rates, will impact digital services like OpenAI subscriptions and other businesses.
- Starting January 1, 2026, digital services like OpenAI subscriptions will be subject to a 16% VAT rate, affecting both businesses and general news.
- The increase in VAT rate for digital services, as stated in the new policy-and-legislation, is part of Kazakhstan's broader shift towards more stringent business and finance regulations.
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