Taobao officially enters Kazakhstan’s market

Taobao, a Chinese online shopping platform, has announced its full-fledged entry into the Kazakhstan market, introducing a new Russian language option in its mobile app. Furthermore, the platform revealed its plan to encourage Kazakhstani users to share their unboxing experiences, offering the opportunity to earn up to 200 yuan ($27.63) in vouchers for future purchases.

By eliminating language barriers, Taobao aims to provide users in Kazakhstan and other Central Asian countries with seamless access to its wide range of products, particularly in categories such as fashion, accessories, household items, and goods for mothers and children. As part of its official launch in Kazakhstan, Taobao is also offering new customers a 30-yuan voucher ($4.15) for any purchase over 31 yuan ($4.28).

As Taobao noted, the Kazakh language, which is the official language in Kazakhstan, has yet to be added to the app. Meanwhile, the Taobao mobile app offers Kazakhstanis detailed descriptions of goods in Russian, with prices in tenge.

The new interface offers a selection of trendy goods, although the app is going to gradually expand the assortment of goods available for Kazakhstani users to match the interface available for Chinese users.

Taobao has been working on localization in Kazakhstan since 2024. The platform supports several payment methods via Visa, MasterCard and Alipay International. It plans to introduce new payment options in the future. The parent company, Taobao Kazakhstan, is registered as a taxpayer for value-added tax in Kazakhstan. The company applies VAT to all purchases, adding it to the final price to ensure smooth operations and transparent pricing.

Furthermore, Taobao is working on a reliable logistics infrastructure in Kazakhstan, as it is necessary for the smooth and dependable operation of stores. Customers can choose between home delivery or pick up their purchases at a convenient location. Taobao’s network includes more than 200 pick-up points across Kazakhstan. Free-of-charge delivery is available for orders costing 99 yuan ($13.68) or more.

According to Analysys, in the fiscal year ending on March 31, 2024, Taobao and its related platform Tmall, which focuses on business-to-consumer (B2C) online retail, together formed the world’s largest digital retail business in terms of gross merchandise volume (GMV).

Over recent years, Taobao has expanded its presence in global markets, gaining significant popularity in places like Singapore and Malaysia. The Taobao app is available for free download in both the Apple App Store and Google Play Store.

A new Kazakhstan tax code proposes banning any foreign marketplace that is not registered in Kazakhstan as a value-added tax (VAT) payer or has not resolved violations identified during control inspections, as Minister of National Economy Serik Zhumangarin said on March 31. He also reported that foreign companies paid $68.5 million in VAT in 2024, compared to $47.6 million in 2023.

Foreign companies are supposed to apply a 12% VAT when selling goods and offering online services in the country, the minister noted, although the new tax code proposes increasing VAT to 16%. In 2022, foreign entities paid $20.3 million in VAT, $45.8 million in 2023, $68.5 million in 2024 and $26 million as of March 1.

According to Zhumangarin, there are 105 foreign companies registered in Kazakhstan, including Apple, Amazon, Alibaba, Aliexpress, Adobe, eBay, Google, iHerb, Huawei, Meta (Facebook, Instagram), Netflix, Nintendo, Pinduoduo, Taobao, TikTok, Temu, Samsung, Sony and Zoom.

In February, Kazakhstan’s authorities revealed that online trade, in which more than 100,000 entrepreneurs are engaged, generates $705.3 million in annual tax revenue, compared to $470.2 million in tax revenue from offline stores, and this gap doubles each year.