Worldwide VAT, GST and Sales Tax Guide
Tashkent GMT +5
EY
Inconel Business Center
3rd Floor
75 Mustaqillik Avenue
Tashkent 100000 Uzbekistan
Indirect tax contacts
Doniyorbek Zulunov
+998 78 140 6482 (resident in Almaty, Kazakhstan) +7 727 258 5960 doniyorbek.zulunov@kz.ey.com
Sergey Bachmanov +998 78 140 6482 sergey.bachmanov@uz.ey.com
Maryna Tarnavska +998 78 140 6482 maryna.tarnavska@uz.ey.com
A. At a glance
Name of the tax
Value-added tax (VAT)
Local name Qo’shilgan qiymat solig’i (QQS)/Налог
стоимость (НДС)
Date introduced 1992
Trading bloc membership
None. Observer status at Eurasian Economic Union (EAEU); currently negotiating WTO accession with WTO members
Administered by State Tax Committee (www.soliq.uz) Ministry of Finance (www.mf.uz)
VAT rates
Standard
Other
VAT number format
VAT return periods
Thresholds
Registration
12%
Zero-rated (0%) and exempt
12-digit number (XXXXXXXXXXXX), where X is a digit between 0-9
9-digit number (XXXXXXXXX) for nonresident VAT payers supplying electronic services, where X is a digit between 0-9
Monthly/Quarterly (nonresident VAT payers supplying electronic services)
None (nonresident providers of electronically supplied services)/UZS1 billion (other businesses)
Recovery of VAT by non-established businesses No
B. Scope of the tax
VAT is levied on turnover derived from the supply of goods and services in Uzbekistan (based on place of supply rules), including imports, unless they are zero-rated or specifically exempt. Any excise taxes and customs duties paid are included in the taxable base for VAT purposes.
Nonresident providers of electronically supplied services for B2B supplies are not required to register and account for VAT on supplies in Uzbekistan. Instead, the customer is required to selfaccount for the VAT due by way of the reverse charge (or withholding (depending on contractual terms) (see the Reverse charge subsection above).
The import of goods is subject to import VAT at customs. There are no other specific e-commerce rules for imported goods in Uzbekistan.
Online marketplaces and platforms. The definition of digital services includes rendering services on provision of technical, organizational, informational and other opportunities, via the internet, carried out with the implementation of information technologies and systems for the purposes of establishing contacts and deals between sellers and purchasers (including the provision of a trade platform or marketplace, operating online where potential customers bid their price through the automated procedures, and parties are informed about sales by automatically generated messages).
Hence, services of online marketplaces and platforms may be subject to Uzbek VAT (if rendered to Uzbek private individuals, i.e., B2C). If digital services are provided by a non-established business to Uzbek private individuals through intermediary nonresidents that are collecting money from Uzbek private individuals based on commission, assignment, agency and other similar agreements with the supplier, then such foreign intermediary organization may be considered as a taxable person for Uzbek VAT purposes, and it would have an obligation to independently calculate and pay the VAT due.
Registration procedures. For Uzbek-established businesses, registration for VAT is completed by submitting an online application. In special circumstances, registration for VAT can be carried out by filing a paper application.
For non-established business supplying B2C digital services, the relevant notice for registration for VAT should be submitted to the tax authorities via the online platform (website http://tax.uz/ en) or by an application in a written form. Based on using the platform, the following information is required to be filled in the application form for VAT registration:
• Company’s name
• Address
• Website
• Official email address
• Country of registration
• Other identifying information
• Information about the services provided
• Information about the authorized person
An application must also include an extract from the register of legal entities of the respective country where the non-established business is registered (or another document confirming the legal status of the non-established business in its home country).
There are no established rules for the process of registration for non-established businesses that do not supply B2C digital services. As outlined in the subsection, Non-established businesses above, B2B supplies of services made by a non-established business are subject to the reverse charge or withholding (depending on contractual terms), and there is no requirement for the nonestablished business to register. Import of goods is subject to import VAT at customs.
Deregistration. Taxable persons may deregister for VAT if their turnover falls below the registration threshold (only for those taxable persons to whom the threshold may apply). Taxable persons for whom the threshold does not apply (such as foreign legal entities with a permanent establishment in Uzbekistan or rendering B2C digital services) may deregister only in the course of liquidation.
Changes to VAT registration details. When there is a change in the name of a taxable person, reregistration for VAT purposes is made automatically by the tax authorities based on the changes in the database of Center of State Services (where re-registration of the business name is applied for by the business) with subsequent notification to the taxable person.
Where there is a change in other details of a taxable person (e.g., address, bank details), the taxable person is required to file special forms to the tax authorities (generally online) informing them about the respective changes.
The procedure of notification can be done online via the personal portal of the taxable person (https://my.soliq.uz), by attaching and submitting the changing registration data of a taxable person. Alternatively, the forms can also be submitted manually, on paper.
A change of location (postal address) must be reported within 10 days from the date of change; other changes generally must be reported within 30 days from the date of the change.
D. Rates
The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of VAT, including the zero rate.
The VAT rates are:
• Standard rate: 12%
• Zero-rate: 0%
The standard rate of VAT applies to all supplies of goods or services unless a specific measure provides for the zero rate or an exemption.
The standard rate of VAT was reduced from 15% to 12% with effect from 1 January 2023.
Examples of goods and services taxable at 0%
• Exports of goods
• International transportation services
The term “exempt” refers to supplies of goods and services that are not liable to VAT and do not qualify for input tax deduction.
Examples of exempt supplies of goods and services
• Financial services (e.g., certain types of banking and insurance services)
• Sale of state property, including vacant non-agricultural land plots based on ownership rights. Accordingly, buyers of state property are exempt from the functions of a tax agent when purchasing such property
• Sale of prosthetic and orthopedic products, inventory for persons with disabilities, as well as services provided to persons with disabilities in orthopedic prosthetics, repair and maintenance of relevant products and inventory
• Educational services
• Turnover on the sale of goods and services purchased by state-funded organizations, stateowned enterprises and companies with a state share of 50% or higher within the framework of projects that are fully or partially implemented at the expense of public external debt from international financial institutions and foreign government financial institutions (excludes borrowed funds refinanced or refinanced through banks). Financing of such projects should be related to infrastructure projects (projects related to electricity, gas, and heat supply, water supply and sewage, water management, road and transport infrastructure, communications and telecommunications, etc.). It is also specified that this benefit applies to the project participants as well (until 1 January 2028)
Option to tax for exempt supplies. The option to tax exempt supplies is not available in Uzbekistan.
E. Time of supply
The time when VAT becomes due is called the “time of supply” or “tax point.”
The basic time of supply for goods is the earlier of when the goods are shipped, the invoice is issued, or the ownership title is transferred to the purchaser.
The basic time of supply for services is the earlier of the issuance of the invoice or other document confirming the delivery of the service. There is no payment or performance tax point for services. When services are rendered on a free-of-charge basis (i.e., no payment), the tax point is determined as per the general rule – earlier of the issuance of a VAT invoice or other document.
Deposits and prepayments. There are no special time of supply rules in Uzbekistan for deposits and prepayments (that are deductible from the total consideration for the supply). As such, the general time of supply rules apply (as outlined above).
Continuous supplies of services. The time of supply rule in Uzbekistan for the supply of continuous supplies of goods and services (e.g., sale of electricity, heating, water, gas, utilities, communication services, goods transported through pipes and other continuous supplies), as well as for long-term construction projects, is the last day of the month in which supplies are provided.
Goods sent on approval for sale or return. There are no special time of supply rules in Uzbekistan for supplies of goods sent on approval for sale. As such, the general time of supply rules apply (as outlined above).
Reverse-charge services. There are no special time of supply rules in Uzbekistan for supplies of reverse-charge services. As such, the general time of supply rules apply (as outlined above).
Leased assets. The time of supply rule in Uzbekistan for the supply of leased assets (i.e., transferring assets on financial leasing) is the date of transfer of the assets to the lessee as per the act of acceptance signed by the lessor and lessee.
Imported goods. The time of supply rule in Uzbekistan for the supply of imported goods is the date of formalization of the import cargo custom declaration.
F. Recovery of VAT by taxable persons
Input tax is VAT charged on goods and services acquired by an entity for business purposes. A taxable person generally recovers input tax by deducting it from output tax (VAT charged on supplies made). Input tax consists of VAT charged on goods and services purchased in Uzbekistan, VAT paid on imports of goods and reverse-charge VAT paid.
VAT payable to the budget is generally determined as output tax charged less allowed input tax paid on purchases.
The time limit for a taxable person to reclaim input tax in Uzbekistan is the reporting month for which the invoice is dated.
Nondeductible input tax. Input tax incurred on purchases used to make supplies of exempt goods and services and on nonbusiness costs cannot be offset against output tax.
Examples of items for which input tax is nondeductible
• Input tax incurred in connection with the purchase of goods, services and fixed assets used to make exempt supplies
• Input tax incurred by nontaxable persons
• Input tax incurred from representation and nonbusiness expenses
• Input tax incurred from the purchase of cars, motorcycles, helicopters, ships, airplanes and fuel for those vehicles, as well as alcohol and tobacco products, unless the purchase of those goods is related to the taxable person’s core business activity
issued in the domestic currency, which is the Uzbekistan so’m (UZS). If supplies are made within Uzbekistan, the invoices must be issued only in UZS. The Central Bank exchange rates must be used for the conversion, which are published daily.
Supplies to nontaxable persons. In certain cases, such as retail B2C sales, taxable persons are required to issue unilateral electronic VAT invoices (i.e., an invoice issued by the taxable person in the system that does not have to be accepted by the counterparty of supply), to record such cases for VAT reporting purposes.
Records. Examples of records that must be held for VAT purposes include accounting records and supporting documents, invoices, contracts and transportation documents. Generally, all business transactions conducted by Uzbek legal entities should be supported by documents (e.g., agreements, VAT invoices, acts of acceptances).
Record retention period. Records must be retained for at least three years.
Electronic archiving. Electronic archiving is not allowed in Uzbekistan. Archiving must be made in paper form. However, as electronic invoicing is mandatory for all taxable persons in Uzbekistan, new rules may be issued by the tax authorities for electronic archiving. At the time of preparing this chapter, no rules on the implementation of electronic archiving have been issued. As such, physical records must be kept for now.
I. Returns and payment
Periodic returns. The filing of VAT returns is on a (calendar) monthly basis in Uzbekistan. Nonresident providers of electronically supplied services for B2C supplies are required to file VAT returns quarterly. Filing is due before the 20th day of the month following the reporting period.
Tax reports (including returns and calculations) must be compiled and submitted by the taxable person to the local tax authority with which the entity is registered.
Periodic payments. Taxable persons must make VAT payments before 20th day of the month following the reporting period. Taxable persons must make VAT payments in UZS via wire transfer from their bank accounts to special treasury accounts of the budget. Non-established business registered for VAT in Uzbekistan can pay VAT in any foreign currency from a bank account.
Electronic filing. Electronic filing is mandatory in Uzbekistan for all taxable persons. VAT returns must be filed electronically, via the tax authority’s website (https://my.soliq.uz). To file VAT returns electronically, the taxable person must have an electronic signature from the tax authority’s website to submit files online. However, if there is no possibility to submit VAT returns electronically, paper filing is still allowed (in special cases).
To file all applicable tax returns and tax reports electronically using the tax authorities’ online system, the taxable person should obtain an electronic digital key (i.e., an “electronic digital signature” or “e-key”).
Payments on account. Payments on account are not required in Uzbekistan.
Special schemes. No special schemes are available in Uzbekistan.
Annual returns. Annual returns are not required in Uzbekistan.
Supplementary filings. VAT invoice register. A VAT invoice register must be submitted with the VAT return by the same deadline (see the Periodic returns subsection above). The VAT invoice register must include details of all VAT invoices issued and received in the VAT reporting period.
Correcting errors in previous returns. To correct errors in previously filed returns, a taxable person is required to file an additional VAT return correcting such errors, including any omissions in the original returns. Additional VAT returns are normally submitted online, in the same manner as a normal VAT return (as outlined under the subsection Electronic filing above).