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12.2. VAT on the Supply of Services by Non-Residents

The supply of services by a non-resident having a place of business in Kyrgyzstan is subject to VAT in Kyrgyzstan.

There is no provision of a reverse-charge mechanism in Kyrgyzstan; hence, the supply of services by a non-resident not having a place of business in Kyrgyzstan is not subject to VAT.

Digital Supplies

Effective 1 January 2022, a non-resident providing services electronically without using a domain name or IP address registered in Kyrgyzstan, the place of delivery of which is recognized as in Kyrgyzstan (i.e., without a permanent establishment in Kyrgyzstan) is subject to VAT at the standard rate. The non-resident is required to register for VAT through an online portal and the tax agents are not required to withhold VAT (i.e., no reverse charge).

Electronic services include:

  • Granting in electronic form the rights to use  software for any kind of electronic devices;
  • Provision of remote access through the internet, to internet resources and resources in other information and communication networks, including updates to them and additional functionality;
  • Provision of advertising services on the internet;
  • Establishing and/or maintaining a commercial or personal presence in internet networks;
  • Provision of services for the administration of information systems, internet resources through remote access;
  • Providing access to search engines on the internet;
  • Carrying out the activities of  sellers and / or operators of the trading platform on electronic commerce;
  • Provision of services for the placement of offers for the acquisition, sale of goods, works, services, property rights on the internet; and
  • Granting through the internet the rights to use electronic books (publications) and other electronic publications, informational, educational materials, graphics, musical works with or without text, audiovisual works, including by providing a remote access to them for viewing or listening via the Internet.

Electronic services exclude:

  • Sale of goods (works, services), if when ordering via the Internet, the delivery of goods (performance of works, provision of services) is carried out without using the Internet;
  • Implementation (transfer of rights to use) programs for electronic computers (including computer games), databases on tangible media;
  • Provision of consulting services by e-mail; and
  • Provision of services for providing access to the Internet.