Individual suffered a five-story fall at Almatinka site.
Reduced VAT Rates on Medical Services and Essential Medicines in Kazakhstan
Starting from January 1, 2026, the new Tax Code in Kazakhstan introduces reduced Value Added Tax (VAT) rates on medical services and essential medicines within the Guaranteed Volume of Free Medical Care (GOSMP), Compulsory Social Health Insurance (OMS) packages, and the wholesale-retail segment.
The VAT rate on these medical services and pharmaceuticals will be 5% in 2026, increasing to 10% from 2027, while the standard VAT rate rises to 16% for other goods and services. This VAT adjustment aims to balance supporting healthcare affordability with tax system simplification and broader VAT rate increases elsewhere in the economy.
Medical services covered under the GOSMP and OMS packages remain exempt from VAT, meaning no direct VAT-related price increase for those services. However, paid medical services (those outside of free or insurance-covered packages) will be subject to a 10% VAT rate, which may lead to price increases in those areas.
The Minister of Health, Akmaral Alnazarova, has estimated that medical services could increase up to 5%. The exact increase range for medical services prices is not explicitly quantified, but since previously many medical services and medicines were VAT exempt or taxed at a lower rate, the introduction of a 5% VAT from 2026 and 10% from 2027 implies a potential increase in prices up to these VAT levels for services and goods previously exempt or taxed lower. For paid medical services (outside GOSMP and OMS packages), the 10% VAT could translate to approximately a 10% increase in price due to VAT effect alone.
Essential medicines sold in the wholesale-retail segment are now fully exempted from VAT. The Minister of Health is currently working on compiling the list of essential medicines for VAT exemption. The phased increase of 5% to 10% will be applied to certain aspects of the medical industry over two years, with the effective tax rate under these conditions expected to be around 2-3%.
The Minister of Health, Akmaral Alnazarova, has spoken about the new Tax Code affecting prices in the medical industry. The list of essential medicines for VAT exemption will be determined by the authorized body. It is hoped that these changes will contribute to making healthcare more affordable for Kazakhstan's citizens.
[1] Tax Code of the Republic of Kazakhstan [2] Government of the Republic of Kazakhstan [3] Ministry of Healthcare of the Republic of Kazakhstan [4] Finance Ministry of the Republic of Kazakhstan
- The Tax Code of the Republic of Kazakhstan introduces reduced Value Added Tax (VAT) rates on medical services, essential medicines, and pharmaceuticals within the Guaranteed Volume of Free Medical Care (GOSMP), Compulsory Social Health Insurance (OMS) packages, and the wholesale-retail segment.
- The Finance Ministry of the Republic of Kazakhstan expects that these changes will contribute to making healthcare more affordable for the country's citizens, as part of the broader VAT rate increases elsewhere in the economy aimed at balancing supporting healthcare affordability with tax system simplification.
- The Minister of Healthcare of the Republic of Kazakhstan, Akmaral Alnazarova, is currently working on compiling the list of essential medicines for VAT exemption, with the hope that these measures will further enhance health-and-wellness and business operations, particularly in the medical industry.
