According to the Finance Ministry, 1.5 billion som in VAT is expected to be collected in 2026 from electronic services provided by foreign companies. This estimate is set out in the draft updated republican budget for that year.
Revised forecast and VAT collection mechanism
It is worth noting that this forecast differs from previously announced plans. The ministry previously forecast 1.1 billion som in VAT revenue from such services. VAT on electronic services of foreign organizations is paid by those foreign companies that provide services in electronic form without using a domain name or IP address registered in the Kyrgyz Republic, with the place of supply recognized as the territory of the Kyrgyz Republic. The VAT rate applied in this case is 12% of the amount of services sold.
Context
VAT revenue from electronic services of foreign organizations totaled 1.3 billion som by the end of September, already covering 85% of the Finance Ministry's updated plan.
