Registration on GAZT for VAT does not affect the competitive advantage against non-taxable enterprises and persons within the same sector.

When registering in VAT, the taxable person pays VAT on the inputs to the suppliers within the supply chain, and 5% VAT should be charged on the taxable supplies provided to the customers, with the ability to deduct/refund the tax due on the inputs from the tax collected on the output. In comparison, non-taxable enterprises bear VAT on inputs where they cannot deduct/refund this tax, and therefore pass on this cost to their customers, as a part of the cost of supplies.