June 1997

IN FORCE AS OF JUNE 1997

A NEW SYSTEM OF VALUE-ADDED TAX (VAT) FOR IMPORT GOODS WAS PUT INTO EFFECT BY KYRGYZ GOVERNMENT DECREE FROM JULY 1, 1996. TAX IS FOR IMPORTS ENTERING FROM NON-CIS COUNTRIES, WHEN ENTERING GOODS WERE NOT PROCESSED BY CIS CUSTOMS.

THIS TAX IS COLLECTED FROM ANY LEGAL ENTITY AND PHYSICAL PERSON. IMPORTS FROM CIS WILL NOT HAVE A VALUE-ADDED TAX.

THE FOLLOWING ARE EXEMPT FROM VAT TAX RELIEF OF:

-- DELIVERIES OF GOODS FOR NATURAL DISASTERS;
-- GOODS ENTERING KYRGYZSTAN ERRONEOUSLY;
-- GOODS FOR OFFICIAL (DIPLOMATIC, CONSULAR, REPRESENTATIVE) AND PERSONAL PURPOSES;

-- GOODS IMPORTED AS BASIC MEANS OF PRODUCTION OR PURCHASED ON CREDIT;
-- HUMANITARIAN AID;
-- TRANSIT.

THE VAT WILL BE ACCOUNTED IN THE CURRENCY, IN WHICH THEIR VALUE IS DECLARE.

AS MAXIMUM, FEES FROM DECLARED COST OF GOODS MAY INCLUDE:

-- 20% FOR VAT
-- 0.15% FOR PROCESSING DOCUMENTS
-- 10% FOR IMPORT DUTIES

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)