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A new Tax Code will come into effect in Kazakhstan on 1 January 2026, under which the supply of medicinal products and medical services will be exempt from VAT. The exemption will also apply to services provided together with healthcare institutions licensed for medical activities within the guaranteed volume of free medical care, the compulsory medical insurance system, as well as for the treatment of orphan and socially significant diseases.
In this regard, a draft Resolution titled "On Approval of the List of Medicinal Products and Medical Services Exempt from Value Added Tax in the Territory of the Republic of Kazakhstan" has been released for review.
According to the draft, 6,572 medicinal products are proposed to be exempt from VAT, covering a wide range of therapeutic groups, including antispasmodics, prokinetic and antiemetic medicines, laxatives, pancreatic enzyme products, endocrinological medicines (including insulin), as well as anti-infective and immunobiological products.
The draft also proposes to exempt a number of medical services from VAT, including emergency medical care, primary healthcare, specialised medical care provided on an outpatient, day patient, or inpatient basis, and medical rehabilitation services.
Under the current Tax Code, VAT exemption applies to medicinal products of any form, including pharmaceutical substances (active pharmaceutical ingredients), medical devices (including prosthetic-orthopaedic products and equipment for persons with hearing and visual impairments), materials and components for their production, as well as medical services rendered by healthcare institutions. The current list of VAT-exempt medicinal products includes 170 items and is significantly narrower than the new proposed list.
The preliminary draft lists of medicinal products and medical services proposed for VAT exemption are attached for review:
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