From 1 August 2025, users in Kazakhstan who subscribe to ChatGPT will notice a new line on their invoices: a 12% Value Added Tax (VAT). This change, introduced by the Kazakh tax authorities, applies to digital services purchased from foreign providers, including AI platforms like ChatGPT.
But here’s the good news: if you are a business or individual entrepreneur registered as a VAT payer in Kazakhstan, you can avoid paying this VAT altogether. The key is ensuring your tax details are up-to-date before the deadline.
In this article, we’ll break down exactly what this means, who it affects, and the simple steps businesses need to take to remain compliant without paying unnecessary VAT.
The Kazakhstani government, like many others around the world, is tightening rules on how foreign digital services are taxed. From streaming platforms to cloud software, and now AI services, the goal is to ensure fair tax collection on services used locally, even when provided by companies with no physical presence in the country.
As of August 2025, ChatGPT falls under this framework. Any individual or company in Kazakhstan purchasing the service will be charged 12% VAT on their subscription unless they are properly registered as a VAT payer.
There are two main groups of ChatGPT users in Kazakhstan:
1. Private Individuals and Non-registered Entrepreneurs
-If you use ChatGPT for personal purposes and are not registered for VAT, you will automatically be charged 12% VAT.
-This VAT cannot be reclaimed or offset.
2. Businesses and Individual Entrepreneurs Registered for VAT
-If you have a Business Identification Number (BIN) and are registered as a VAT payer in Kazakhstan, you can avoid the VAT charge by entering your details into your ChatGPT account before 1 August 2025.
-Once your BIN is verified, ChatGPT will treat you as a business client, issuing VAT-compliant invoices that exempt you from paying the 12% VAT up front.
If you fail to enter your BIN into your ChatGPT account by the August 1 deadline, you will be billed as an individual user, meaning:
For companies using ChatGPT daily, whether for research, content generation, coding, or customer service, these unnecessary costs could add up quickly.
To avoid paying the 12% VAT, businesses in Kazakhstan should act now. Here’s a step-by-step guide:
Make sure your company is registered as a VAT payer with the Kazakhstani tax authority. If you are not yet registered, consult with your accountant or tax advisor to confirm whether registration is required for your operations.
This is the number issued by the authorities when you registered your business. It is essential for tax reporting and will be required when updating your account details.
Step 4: Keep Records for Compliance
Download and save VAT-compliant invoices issued by ChatGPT once your BIN has been entered. These documents will be important for accounting and tax audits.
Timing is everything. If you update your account before the deadline, you will continue receiving invoices without VAT applied.
If you delay until after 1 August 2025, any VAT already charged cannot be offset. In other words, you’ll lose that money. Even if you add your BIN later, only future invoices will be exempt.
Let’s say your company subscribes to ChatGPT Plus at $20 per month.
Now imagine this on an enterprise-level subscription at hundreds of dollars per month, and the unnecessary costs quickly multiply.
The move to apply VAT on ChatGPT is part of a global trend. Governments worldwide are updating tax systems to capture revenue from the fast-growing digital economy. For Kazakhstani businesses, this means:
AI tools like ChatGPT are rapidly becoming everyday business essentials in Kazakhstan, supporting innovation, productivity, and growth. But with governments applying new digital VAT rules, companies must stay alert to avoid unnecessary costs.
By simply updating your tax details in ChatGPT, you can continue benefiting from cutting-edge AI without the added 12% expense.
E-Invoicing in France: Updates on the B2B and B2C Mandate France is making steady progress on its digital invoicing reform, despite a shift in the official timeline. Originally planned for 2024, the mandatory B2B and B2C e-invoicing will now begin in September 2026, giving businesses more time to prepare, but also raising expectations for compliance. […]
Claiming VAT in the accounting industry Explore the reclaim opportunities available within the industry Within the accountancy industry, there is very little room for error. Every cent is accounted for, and financial visibility is a key priority. However, even within a sector that is tapped into the intricacies of value-added tax and its impact on […]
VAT vs Sales Tax: A practical business guide On the surface, VAT and sales tax are virtually the same. They’re both indirect taxes on the sale of goods or services. However, from a business and accounting perspective, there are important distinctions that affect compliance, cash flow and profit. For businesses entering new markets, understanding the […]
E -Invoicing in Egypt: A New Chapter in Digital Taxation Egypt is undergoing a digital evolution in the world of tax, and it’s reshaping the way businesses handle invoicing. At the heart of this transformation is the Egyptian Tax Authority’s (ETA) e-invoicing and e-reporting initiative, a broad-scope mandate that aims to close VAT gaps, increase […]
A pocket guide to reclaiming VAT from the UK Great – you’ve got stacks of VAT recovery opportunities waiting to be reclaimed. Except for one tiny problem: you do not know where to begin. We don’t blame you. VAT reclaim (especially from the UK) is no easy feat. Not only do you have to absolutely […]
