Kyrgyz entities or foreign businesses operating in the country are subject to sales tax for the realization of goods, work, and services in non-cash form as of January 1, 2023.
The sales tax differs from the VAT and does not take into account purchases and is levied on sales turnover. The sales tax rates are as follows:
-upon sale of goods, work, and services that are subject to VAT at the rate of 1 % for trading activities and production field, at the rate of 2% for other activities;
– while selling goods, work, and services exempt from VAT in the amount of 2% for trade activities and production field, in the amount of 3% for other activities;
Sales tax rates apply in the amount of 2% for banks and developers of residential and non-residential properties, in the amount of 5% for the sphere of cellular services;
The amendments to be introduced to the current Tax Code are under consideration at the Jokorku Kenesh (Supreme Council) of the Kyrgyz Republic at present.