Foreign Marketplaces and Kazakhstan's Regulatory Strategies

Growth and Regulation in Kazakhstan's Cross-Border E-commerce Market

Kazakhstan's e-commerce sector has experienced rapid growth over the past few years, with the retail e-commerce market reaching 3.4 trillion tenge (US$6 billion) in 2024, marking a 42% year-on-year increase. This growth has been driven, in part, by the integration of foreign marketplaces into the Kazakh commercial environment.

However, the influx of foreign e-commerce platforms has not been without its challenges. In 2022, e-commerce complaints accounted for 9% of total appeals, a figure that rose to 23.2% by 2024. A significant portion of these complaints, 73.7%, concerned marketplace Wildberries.

In response, the Kazakh government has implemented a series of key regulatory measures to oversee foreign marketplaces. These measures aim to ensure fiscal discipline, legal integration, enhanced traceability, and consumer protection.

One such measure is the conditional VAT registration for foreign e-commerce firms. Starting from January 1, 2026, these companies must submit a confirmation letter to Kazakh tax authorities within one month of their first sale to Kazakh consumers. Failure to comply could result in access blocks. The definition of "online marketplace" has also been expanded to include intermediary services, broadening the scope of entities subject to VAT registration.

Another initiative is the integration with national digital systems. By October 1, 2025, the Ministry of Finance aims to update the regulatory and legal framework to integrate agency information systems with the National Catalogue of Goods, enhancing oversight and traceability of traded goods.

The Ministry of Trade and KazPost are also tasked with launching a B2B electronic commerce platform pilot to bolster e-commerce infrastructure and facilitate better control over product flow within and beyond Kazakhstan.

Consumer protection and product labeling are also key areas of focus. Efforts include expanding goods subject to labeling, piloting digital food vouchers, and developing a virtual assistant tool for consumer rights protection.

Strengthening postal and logistics collaborations is another crucial aspect of the regulatory strategy. Recognizing that 50% of parcels handled domestically come from abroad (mainly China), KazPost has partnered with YTO Express to improve service for cross-border parcels, reinforcing regulatory and logistical capabilities.

The Kazakh government's efforts extend beyond these measures. The E-commerce Development Plan includes measures to enhance legislation on online sales, introduce e-commerce training courses nationwide, and implement financial incentives for state support of entrepreneurs.

The strategy for e-commerce development aims to strengthen local capacity while maintaining openness to global commerce, creating an integrated ecosystem. Despite the growth of foreign marketplaces, no formal complaints from local entrepreneurs regarding unfair competition have been received by the Ministry of Trade and Integration.

In addition, nearly half of all e-commerce complaints originated from social media-based commerce. To address this, the Ministry of Trade and Integration has sent letters to foreign marketplaces via diplomatic channels requesting information on personal data processing and server locations.

The E-commerce Development Plan until 2027 was adopted by the Ministry of Trade and Integration in April 2022. This strategy, coupled with the aforementioned regulatory measures, represents a comprehensive governmental approach to regulate the rising influence of foreign marketplaces in Kazakhstan’s booming cross-border e-commerce market.

Sources: [1] Kazakhstan Today. (2022, April 26). Kazakhstan adopts e-commerce development strategy until 2027. Retrieved from https://www.kazakhtoday.com/ru/news/2022/04/26/kazakhstan-adopts-e-commerce-development-strategy-until-2027

[2] Auezov, A. (2022, June 2). Kazakhstan to regulate foreign e-commerce platforms. Retrieved from https://www.kazakhtimes.kz/article/443855/kazakhstan-to-regulate-foreign-e-commerce-platforms

[3] Auezov, A. (2022, May 16). Kazakhstan to introduce VAT for foreign e-commerce platforms. Retrieved from https://www.kazakhtimes.kz/article/442545/kazakhstan-to-introduce-vat-for-foreign-e-commerce-platforms

[4] Auezov, A. (2022, June 13). Kazakhstan to regulate foreign e-commerce platforms. Retrieved from https://www.kazakhtimes.kz/article/443648/kazakhstan-to-regulate-foreign-e-commerce-platforms

[5] Auezov, A. (2022, June 2). Kazakhstan to regulate foreign e-commerce platforms. Retrieved from https://www.kazakhtimes.kz/article/443855/kazakhstan-adopts-e-commerce-development-strategy-until-2027