The E-invoice System in Kyrgyzstan Will Be Completely Updated. What Concerns Businesses?

Юлия Воробьева Economy
VK X OK WhatsApp Telegram
The Tax Service of Kyrgyzstan has begun work on updating the electronic invoice system (EIS). The agency acknowledges that the existing mechanism has many shortcomings and intends to completely overhaul it, taking into account the needs of accountants and entrepreneurs.

"The initial version was created in a rush"

During discussions with business representatives, Nurgul Salieva, Deputy Head of the State Enterprise "Salyk Service," noted that the previous version of the EIS was developed under tight deadlines and was the first attempt to implement such a system.

“The situation was such that we were working in a hurry. We had no experience, and the taxpayers themselves often could not come to a consensus. Now we have an understanding of the mistakes, and we want to hear the opinions of businesses at the early stages of development,” she added, inviting accountants and bank representatives to submit their suggestions.

Access issues with the EIS

One of the main complaints about the current system is the very short session time. Users lose access to the EIS after just a few minutes of inactivity, which leads to constant interruptions for companies with a large volume of operations, where accountants process thousands of invoices.

Interestingly, there is no such problem in the "Taxpayer Cabinet" — sessions there can remain active for significantly longer.

In "Salyk Service," it was explained that in the current version of the system, it is technically impossible to change the session mechanism. However, the new version of the EIS plans to integrate with the "Taxpayer Cabinet," which should resolve the issue of users being "kicked out" and simplify registration in the system, eliminating the need to wait for confirmation from the tax authority.

Issues with advance payments and large volumes of EIS

Business representatives also pointed out the need to account for advance payments and the huge volumes of EIS issued. Large companies with thousands of counterparties are forced to issue up to 10,000 EIS daily, including advance invoices.

Businessmen reported that starting in January, single tax payers are required to pay tax on advances, but the report only highlights one general field, making it difficult to reconcile data with 1C. They suggested eliminating the need to issue separate EIS for each advance payment and adding a separate line for advances in the reports.

Resolving non-standard situations and changes in the tax regime

Additionally, businesses proposed that the tax service act as an arbitrator in non-standard situations. An example was given where a company issued an EIS for an advance and paid taxes, but the counterparty rejected the document for unclear reasons. Later, the seller switched to a "simplified" tax regime, and the buyer could not obtain confirmation for VAT credit because the system blocked actions.

Businesses proposed several solutions for such cases:

In "Salyk Service," it was confirmed that these proposals could be technically implemented, but current legislation only allows changing the status of the EIS to "Cancelled." A meeting is planned to organize discussions between businesses and the tax service's methodology specialists to amend the rules.

A multitude of tax websites

A separate problem for large companies is the lack of convenient automation. Accountants have to work simultaneously with the "Taxpayer Cabinet," the EIS, and electronic signature services, entering similar data on different platforms.

Business representatives inquired when a unified system would be created to consolidate all services. The director of the State Enterprise "Salyk Service," Shamshybek Kachkynbay uulu, stated that the new system is already under development.

“Taxpayers will have one platform where all functions related to invoices and tax reporting will be available. It will support all officially certified types of electronic signatures, and existing types of digital signatures will be integrated into a unified system,” he explained.
VK X OK WhatsApp Telegram

Read also: