Project start: August 29, 2013
Putting EI IS into trial operation: July 1, 2014
Launch of Virtual Warehouse Module: April 1, 2018
The main purpose of EI IS is to automate the process of interaction between the Suppliers of goods, works and services (GWS) and the Customers of GWS in terms of exchange of E-invoices through the Ministry of Finance of the Republic of Kazakhstan represented by the State Revenue Committee, which will ensure receiving, processing, registration, transfer and storage of invoices issued in electronic form. Thus, all operations related to the document circulation of the invoices are automated – starting with creation of an outgoing invoice to its delivery to the Beneficiary, in cases stipulated by the legislation of the Republic of Kazakhstan.
At the moment, the system is developing and Virtual Warehouse module has been launched. The module is a part of a large-scale project on tax administration reforming in RK co-financed by the International Bank for Reconstruction and Development (World Bank) and implemented in execution of the program "100 Steps to Implement Five Institutional Reforms of the Head of State", Step 39: "Integration of Customs and Tax Systems". The purpose of Virtual Warehouse module is implementation of end-to-end control over the goods, from their importation to Kazakhstan or production, to the final sale at retail or export from the country.
The objectives of EI IS creation are:
- Receiving, processing, registration, transfer and storage of invoices, issued in electronic form, in order to reduce costs and time spent on document circulation between business entities, improve information interaction between business entities and treasury bodies and tax authorities.
- Improving the quality of budget execution, cost effectiveness and financial discipline of public institutions.
- Improving the quality of tax administration, including prevention, identification and suppression of the activities of false enterprises.
The object of automation are operations that are part of the process of document circulation of invoices between suppliers and recipients of GWS, as well as control over the implementation of these transactions by employees of tax authorities and treasury bodies.
The process of document circulation of invoices includes the following operations:
- Entry of invoices (or import of invoices from a file, external system, import of invoice package) by the supplier of GWS.
- Check of invoices for compliance with the rules of document circulation of invoices issued in electronic form.
- Signing of invoices by GWS supplier.
- Registration of invoices in Information system of Electronic invoices with the assignment of registration number to the document.
- Shipping invoices to the recipient of invoices.
- Cancellation of previously issued invoices by the supplier in cases envisaged by the legislation of the Republic of Kazakhstan.
- Extraction of additional and corrected invoices in cases provided by the legislation of the Republic of Kazakhstan.
- Recall of invoices in cases stipulated by the legislation of the Republic of Kazakhstan.
- Rejection of additional and amended invoices as well as withdrawal of invoices in cases provided by the legislation of the Republic of Kazakhstan.
- Sending of invoices, written out to state institutions, to the treasury;
- Storage of E-invoices in EI IS and provision of access to delivered and received invoices by users of EI IS during the period of limitation, established by the legislation of the Republic of Kazakhstan.
On behalf of one EI IS member (one enterprise), one to five thousand users can work in the system (accountants of branches and other employees involved in the processes of extracting and receiving of E-invoices).
Individuals who are not individual entrepreneurs also have the option of registering as EI IS user to receive and view E-invoices issued to them at their request.
The EI IS interacts with the information systems and services of the State Revenue Committee of the Ministry of Finance of RK (SRC MF RK), the Treasury Committee of Ministry of Finance of the Republic of Kazakhstan (MF RK), as well as the National Certification Center of the Republic of Kazakhstan (NCC RK), and also has the opportunity to interact with taxpayer accounting systems through an open API-interface.
The result of the project implementation will be a service for receiving, processing, recording, transferring and storing of E-invoices.
At present, the issuance, transfer and storage of invoices in RK is carried out only on paper. The discharge of invoices is the responsibility of the Supplier of GWS.
Supplier of GWS in cases envisaged by the tax legislation, and in lines established by tax legislation, subscribes invoices to the Recipient of GWS. The invoices shall be certified by signature of the head and chief accountant of taxpayer or by the signature of the person authorized to sign invoices. Persons authorized to sign invoices are appointed by order of the taxpayer's leadership. Invoice is also certified by the stamp of taxpayer.
The number of paper copies of invoice is not less than two (copy of the Supplier of GWS and copy of the Buyer of GWS), but may exceed the indicated number. For example, in the event that invoice is issued to participants in a joint activity or on behalf of participants in a joint activity, a separate copy of invoice is issued for each member of joint activity.
A copy of invoice is sent to GWS Recipient on purpose, by mail or otherwise, ensuring guaranteed delivery of the document.
VAT payers periodically submit a register of written and received invoices to the SRC MF RK as part of VAT Declaration.
Invoices are kept by Supplier of GWS and Receiver of GWS as part of taxpayer's accounting documents during the limitation period envisaged by the legislation RK.
Having analyzed the problems that arise when issuing invoices, the following problems that occur with taxpayers can be singled out:
- errors in invoice design, including incorrect registration data of supplier, recipient. In particular, errors in IIN/BIN, name, address, requisites of VAT certificate, etc.;
- excessive requirements to the form of invoice on the part of buyer because of risks of buyer for excluding VAT from offset;
- operator labor, paper, printing, packaging, postage stamps, delivery;
- voluminous archives;
- untimely receipt of invoices from suppliers of GWS;
- risk of losing invoices;
- quarterly submission of large registers of invoices to tax authorities.
Three variants of input, registration and transmission of electronic invoices have been implemented:
- through WEB-application;
- by off-line application;
- by integrating EI IS with accounting systems of taxpayers through API.
The system is supposed to automate two main processes of working with the E-invoices:
- with the use of own clients of EI IS: WEB-applications and off-line applications of EI IS;
- through integration mechanisms.
The signing of invoices is provided by means of EDS (electronic digital signature) of NCC.
The Web application of the System should be developed on the basis of “thin client” architecture; it interacts with the user using a Web browser (using Web services technology). Data processing and data storage are performed on the server.
Off-line application is designed for users, in conditions of unstable and Internet connection or lack of constant connection to the Internet. Off-line application is developed on the basis of "thick client" architecture.
The system provides an open API-interface for accounting systems of taxpayers, allowing external with systems to perform all operations with E-invoices, available to users in Web application and Off-line application.
SRC MF RK provides taxpayers with a test stand for debugging integration mechanisms of accounting programs. In the test environment of EI IS it is possible to try to issue/receive electronic invoices on behalf of test company (without registering on the server), to be acquainted with basic capabilities of the system and debug the work with electronic documents. The documents written in the test environment do not have legal force and are not used in the control procedures by the tax authorities. To enter the test server, test certificates, which can be downloaded from the portal of the State Revenue Committee are used.
Test stand of EI IS
Test stand of EI IS with Virtual Warehouse module