Service

A. General Information

1. Title

Kyrgyzstan Electronic Invoice Note System (ETTN)

2. Implementation period of the project/service:
From
Jul-2019
To
--
3. Website
https://esf.salyk.kg
4. Geographical coverage
Global: Europe, Asia and the Pacific
Participating countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russian Federation
Hub Point: Kyrgyzstan
5. Participating agencies/entities of the project/service:
a. Development stage
Lead agencies/entities
State Tax Service of the Kyrgyz Republic (STS)
Other participating agencies/entities
World Bank (Tax Administration Modernization Project 2020-2025),
Asian Development Bank (Integrated Tax Administration System support)
b. Operational stage
Lead agencies/entities (op)
State Tax Service of the Kyrgyz Republic (STS)
Other participating agencies/entities (op)
World Bank (Tax Administration Modernization Project 2020-2025),
Asian Development Bank (Integrated Tax Administration System support)
6. Main stakeholders/beneficiaries of the service
Traders (big enterprises)
Traders (SMEs)
Transport
Customs brokers
Customs
Other Government Agencies (OGAs)
VAT-registered businesses, importers, exporters within EAEU
7. Business process category of the service
Commercial Transactions
Regulatory/official control
Tax compliance, VAT administration, goods traceability

B. Lessons Learned

8. Summary description of the project/service
Brief Summary

The ETTN is a centralized electronic invoicing platform operated by the State Tax Service enabling businesses to create, digitally sign, validate and exchange invoices in real-time for B2B transactions in Kyrgyzstan and within EAEU.

a. Objective(s)

To digitalize invoice exchange, increase tax transparency, reduce shadow economy, improve VAT control, enable real-time validation of commercial transactions, and facilitate goods traceability within the EAEU framework.

b. Business need for the service (background)

Kyrgyzstan needed to modernize its tax administration system to combat the shadow economy, reduce invoice fraud, improve VAT collection efficiency, and align with EAEU requirements for goods traceability and cross-border trade facilitation.

c. Business process covered*

Invoice registration, creation in XML format, digital signature application, real-time validation against regulatory standards, electronic exchange between suppliers and buyers, archiving for minimum 5 years, VAT compliance verification.

d. Overall architecture and functionalities*

Centralized Exchange Continuous Transaction Controls (CTC) model. Taxpayers register with the STS, obtain electronic digital signature (EDS), access the esf.salyk.kg portal, create invoices in standardized XML format, digitally sign documents, submit for real-time validation. Once validated, invoices are delivered to buyers through the system. Integration with taxpayer cabinet (cabinet.salyk.kg) for account management and debt notifications.

e. Relevant document/figure
--
9. Documents and data exchanged via the service

Electronic invoices (ESF), electronic waybills (ETTN), VAT declarations, tax reports, counterparty verification data, product/service catalogs

10. Data models/databases, proprietary solutions, hybrid approaches

Proprietary XML-based format developed by Kyrgyzstan State Tax Service for invoice data structure, integrated with taxpayer identification system using 14-digit TIN/PIN codes.

11. Main challenges faced during the service

Public protests from bazaar traders and entrepreneurs over mandatory adoption; distrust between citizens and government; complexity for small businesses managing large product catalogs; need for additional accountants; training requirements for EBL system usage; temporary rollback of requirements for most goods in January 2025.

12. Lessons learned from the service

Phased implementation is essential - starting with high-risk sectors (oil) before broader rollout; clear exemptions needed for small businesses; adequate taxpayer training and support infrastructure required; government communication about reforms must address public trust deficits; flexibility to adjust mandates based on business feedback improves adoption.

13. Main benefit(s) of the service
Enhanced regulatory compliance*
Transaction Time savings
Simplified process
13A. Elaborations/detailed description on benefits gained
--
14. Technical/financial/capacity building/other assistance

World Bank: $35 million Tax Administration and Statistical System Modernization Project (2020-2025) including $17.5 million concessional credit and $17.5 million grant. Asian Development Bank: Tax Administration Reform and Modernization Project for Integrated Tax Administration System implementation.

15. Future plan for expansion of the service

From 2025, ESF system expected to expand functionality. Mandatory ETTN usage for medicines and medical devices from January 2027. Government considering mandatory ESF usage for all individual entrepreneurs on general taxation system regardless of VAT status. Integration with national product marking/traceability systems.

16. Other information or relevant references on the service

The system operates alongside a separate product marking/traceability system for EAEU compliance using GS1 DataMatrix codes. Kyrgyzstan's tax-to-GDP ratio was 21.9% in 2023, above Asia-Pacific average of 19.5%. VAT at 12% constitutes highest share of tax revenues (49.5% in 2023). Electronic digital signatures (EDS) obtained at Public Service Centers or accredited certification centers.

17. Relevant document regarding the service
--

C. Relevant Standards

18. Name(s) of any international, national legal instrument underpinning the service
Agreement on the mechanism for the traceability of goods imported into the customs territory of the EAEU; Resolution of Cabinet of Ministers No. 220 (April 14, 2022); Tax Code of the Kyrgyz Republic (2022 edition); EAEU Treaty provisions on customs regulation and digitalization.
19. Electronic message standard
19A. Electronic message standard supporting the service
XML:
- Other XML format: Proprietary XML format developed by Kyrgyzstan State Tax Service
19B. Type of standard for electronic message applied for the service
Proprietary solution
 
Proprietary solution was applied because:
- Need to adhere to existing ones, due to such reason as complying to requirements from partners and users
20. Technical communication standard
20A. Technical communication standard supporting the service
HTTP
20B. Type of technical communication standard applied for the service
International standard
21. Security-related standards*
21A. Security-related standard supporting the service
TLS (Transport Layer Security) / SSL (Secure Socket Layer)
Digital signatures
21B. Type of security-related standard applied for the service
International standard
22. Other Technical Information
22A. Interface developed for data exchange with an internal system
Integration with taxpayer personal cabinet (cabinet.salyk.kg); integration with accounting software (e.g., 1C); API for SAP and other ERP systems through third-party providers; mobile application (Salyk.kg app).
22B. Other technical implementation information
Invoices must be registered within 5 calendar days of shipment. Businesses required to store electronic invoices for minimum 5 years. System performs automated checks for TIN/OKPO verification, VAT amount validation, rate compliance. Fines up to 40,000 KGS for data falsification. Separate product marking system (Teksher platform) operates for serialization requirements.

Last Update: 3 December 2025