Kazakhstan Experiences Rapid Growth in the Digital Shopping Industry
Kazakhstan is strengthening its control over foreign online marketplaces, introducing stricter regulations, and addressing significant logistics challenges as its e-commerce sector experiences rapid growth.
The new regulations, part of a revised Tax Code, require foreign online marketplaces to register with local tax authorities. Failure to comply will result in the platforms being blocked from operating in the country. The authorities will conduct online monitoring of sales data from these platforms to ensure tax compliance, including tracking seller and buyer information, and transaction volumes.
In addition, proposed legislation limits banks and bank holding companies from owning more than 15% of their capital in digital marketplaces or related tech companies. This move aims to regulate the influence of financial institutions in the e-commerce sector, with major Kazakh banking groups like Kaspi.kz and Halyk Bank currently owning key online platforms such as Kaspi Shop and Halyk Market.
Logistics remains a major challenge due to Kazakhstan's vast territory and customs regulations as part of the Eurasian Economic Union (EAEU). Customs bottlenecks are common, especially for shipments that do not meet strict documentation and technical requirements. Misclassification and incomplete documents lead to lengthy delays.
To address these issues, the EAEU has implemented an "e-commerce operator" system. This licensed system aggregates small parcels into bulk customs declarations, speeding clearance for compliant shipments but imposing tougher scrutiny on non-compliant ones. Expert certification management and proactive importer-of-record arrangements are recommended to avoid delays and penalties.
The e-commerce sector in Kazakhstan has seen a sevenfold increase in the last five years, reaching 3.2 trillion tenge (~$7 billion+), which accounts for 14.1% of total trade. Despite this, many consumers still show a preference for offline shopping, indicating significant growth potential for online retail.
Deputy Prime Minister and Minister of National Economy Serik Zhumangarin acknowledged public concerns about online shopping, including fears of fraud and mistrust in internet platforms. He emphasized the growing significance of e-commerce as an important segment of trade in Kazakhstan.
To support sustainable e-commerce growth, Kazakhstan is focusing on modernizing its logistics infrastructure and improving customs compliance. This includes the construction of warehouse space by Kazpost across several regions and the expansion of logistics centres by e-commerce giants like Ozon and Wildberries.
In summary, Kazakhstan is moving towards stricter regulatory oversight of foreign e-commerce platforms, limiting the role of banks in digital marketplaces, and emphasizing logistics modernization coupled with customs compliance to support sustainable e-commerce growth. These efforts aim to protect local businesses, ensure fair taxation, and improve supply chain efficiency within the rapidly expanding digital trade ecosystem.
Foreign online marketplaces operating in Kazakhstan are now obliged to follow stricter regulations, such as registering with local tax authorities, to prevent being blocked from the country. This move includes online monitoring of sales data to ensure tax compliance and restricting banks from owning more than 15% of their capital in digital marketplaces or related tech companies, in an effort to regulate the influence of financial institutions in the e-commerce sector.
