The new blockchain-based VAT management system would make the process more transparent and efficient.
Currently, electronic tax invoices are recorded in a database list, which results in problems with traceability:
“Sometimes it is not possible to track the whole chain [of transactions] because it often breaks. This is an ongoing problem with the VAT system. Blockchain would help to track the whole process, making it more transparent,” Sanjar Kettebekov, CEO of Almaty Tech Garden, told Prodengi.kz
According to him, the pilot version of the system may go live as early as 2017, in case the Kazakh Ministry of Finance approves the project. The ministry has confirmed its interest in the blockchain technology for the improvement of the national economy.
The project may get support from the country’s largest media company Kazakhtelecom, which is also considering the implementation of the distributed ledger technology, Kettebekov informed. The consultation with the company may take place in the near future.
In September 2016, Sanjar Kettebekov announced that Almaty Tech Garden partnered the National Bank of Kazakhstan and IBM to develop a blockchain-based platform for the issuance of short-term securities.
“Purchase and sales of securities will be settled using an advanced payment instrument – electronic money,” said Governor of the National Bank Daniyar Akishev.
IBM’s total investment of in the project is estimated at $3 million, the same amount being provided by the state budget.