VAT in Uzbekistan: calculation, input credits and refunds

VAT in Uzbekistan is paid by legal entities and individual entrepreneurs whose annual income exceeds 12,000 basic calculation amounts (BCAs) (5.280.000.000 soum), by importers when goods are brought into the country, and by purchasers of services from foreign companies. The rate is 12%, while exports are zero-rated, and monthly returns must be filed by the 20th day of the following month. Input VAT may be credited, and a negative balance is refunded from the budget within 30 days.

At a glance:

• The VAT rate is 12%; exports of goods, international transportation, and listed agricultural products are taxed at 0%
• The obligation to pay VAT arises when income exceeds 12,000 BCAs (5.280.000.000 soum) from 1 June 2026; before that date, the threshold was UZS 1 billion
• From 1 June 2026, catering, trade, and service businesses may elect a simplified procedure: 6% of their entire turnover, with no input VAT credit and a zero corporate income tax rate
• A negative VAT balance is refunded within 30 days after a desk audit, within seven days for exporters and large taxpayers, and automatically for amounts of up to UZS 10 million
• Operating without VAT registration is punishable by a fine of 5% of income, but not less than UZS 5 million; businesses switching from turnover tax for the first time are not fined during their first year

Updated: 03 September 2026

What VAT is and who pays it

Value added tax is an indirect tax that a seller adds to the price of goods or services and remits to the budget, while a purchaser that is itself a VAT payer may subsequently claim it as a credit. Only the tax on the value added at each stage reaches the budget, and the final consumer bears the tax as part of the price. Persons supplying goods and services in Uzbekistan are recognized as VAT payers (Article 237 of the Tax Code):

• Uzbek legal entities whose income exceeds the turnover-tax threshold, as well as those that have elected to pay VAT voluntarily;
• individual entrepreneurs whose sales income exceeds the same threshold, or who have elected to pay VAT voluntarily;
• foreign legal entities and foreign entrepreneurs supplying goods or services for which Uzbekistan is the place of supply;
• foreign companies operating in Uzbekistan through a permanent establishment, with no revenue threshold;
• the authorized representative of an unincorporated partnership for activities under a joint-operation agreement;
• persons moving goods across the customs border, in respect of import VAT.

State authorities acting within their statutory functions and persons paying turnover tax do not pay VAT. Neither exemption applies to imports: VAT is payable at customs by every importer, including a company subject to turnover tax. An individual who does not have entrepreneur status is not a VAT payer, so neither that person's services nor the lease of that person's property is subject to VAT.

In certain cases, the obligation to calculate and pay the tax shifts to a tax agent: a purchaser of services from a foreign company, a lessee of state property, or a purchaser under a high-risk invoice. The agent pays VAT regardless of whether the agent is itself a VAT payer (Article 255 of the Tax Code).

This article covers VAT only. To learn who pays corporate income tax and turnover tax, at what rates, which expenses are non-deductible, and when a company must leave the turnover-tax regime, see our article on corporate income tax and turnover tax. It will help when choosing a tax regime: switching to VAT always entails a simultaneous switch to corporate income tax.

VAT threshold and voluntary registration

From 1 June 2026, the income ceiling for switching to the generally established taxation procedure is 12,000 BCAs (5.280.000.000 soum), as established by Presidential Decree No. UP-100 of 26 May 2026. As long as income for the calendar year does not exceed that amount, a legal entity or individual entrepreneur may pay turnover tax. Articles 237 and 461 of the Tax Code still state the former threshold of UZS 1 billion, which applied until that date.

The date of transition depends on the circumstances (Article 462 of the Tax Code):

• when the threshold is exceeded, a company, individual entrepreneur, or self-employed person becomes subject to VAT and corporate income tax on the date the income ceiling is reached;
• for a company or individual entrepreneur established during the year, the threshold is calculated proportionately: the ceiling is divided by 365 and multiplied by the number of days from registration through the end of the year; if that amount is exceeded, the transition takes place from the beginning of the following year;
• commission agents and agents under agency agreements compare the threshold against the total turnover from the transactions, rather than against their own fee.

A voluntary transition is possible at any time: a legal entity leaves turnover tax on the first day of the month following the month in which it applies for VAT registration. A business may return to turnover tax after a voluntary transition no earlier than 12 months later, and only if its income for the current year has not exceeded the threshold. The reverse transition is made by filing a notice no later than 10 working days before the beginning of the calendar year; the company ceases to be a VAT payer from 1 January.

Certain activities are ineligible for turnover tax regardless of income, so companies engaged in them pay VAT from their first day of operation. These include producers of excisable goods and subsoil users; sellers of petrol, diesel fuel, and gas; agricultural producers with at least 25 hectares of irrigated land; lottery operators; fixed retail outlets selling alcohol; markets and shopping complexes; tax-consulting organizations; audit organizations; non-profit organizations; pharmacies and medical organizations; manufacturers and sellers of jewellery; and owners of vacant buildings and unfinished structures (Article 461 of the Tax Code). Importing goods also automatically made a company a VAT payer until May 2026. Presidential Decree No. UP-100 abolished mandatory VAT-payer status for importers, although import VAT itself remains payable at customs.

The transition is advantageous where the main customers are themselves VAT payers that can claim the tax as a credit and where costs include substantial input VAT, as in manufacturing, wholesale trade, exports, and construction. For retail sales to consumers and services involving few purchases, the transition generally increases the tax burden; a simplified 6% procedure was introduced for such companies in 2026.

VAT registration

VAT payers undergo special registration with the tax authorities and receive a certificate bearing an individual VAT number (Article 237 of the Tax Code). The registration procedure was approved by Cabinet of Ministers Resolution No. 595 of 22 September 2021. An application is filed electronically through the taxpayer's personal account: for a mandatory transition, within five working days of the month in which the obligation arose; for a voluntary transition, before the beginning of the transition month. Registration is free of charge.

Within seven days, the tax authority assesses the applicant's tax risk and assigns it to a high-, medium-, or low-risk group. It then decides within two working days whether to register the applicant or refuse registration. The high-risk indicators are exhaustive: the director has not been identified, or employment contracts are not recorded in the Unified National Labour System; information about the founder is missing; the company is absent from its registered address; it has no owned or leased real estate; its address is nominal; its transactions do not match the range of goods purchased and sold; tax returns have not been filed; the company, or a founder holding at least 50%, has tax arrears; the director concurrently manages a debtor; or the applicant has participated in a company that previously became bankrupt or has been held liable for tax evasion. An address is treated as nominal if there are less than 18 square metres of administrative space per legal entity. Several indicators do not apply to IT Park residents that have a virtual-office agreement.

Certificates are issued automatically, without a risk assessment, to persons that are ineligible for turnover tax, foreign companies whose place of supply is Uzbekistan, and permanent establishments (paragraph 9 of the Regulation). From 1 January 2026, such companies receive their certificate at the same time as state registration, under the “business in 15 minutes” principle introduced by Presidential Decree No. UP-214 of 14 November 2025.

A company is treated as registered from the first day of the month following the month in which it applies; persons ineligible for turnover tax are registered from the date the obligation arises. Until registration, VAT is payable without the right to a credit. If registration is refused, the applicant may remedy the reason and reapply, or appeal the decision to a higher tax authority or a court. Since 28 May 2026, the certificate has been issued solely for record-keeping purposes and may not serve as grounds for enforcement measures, while the former procedure for temporarily suspending a certificate has been abolished by Presidential Decree No. UP-100.

Failure to follow the registration procedure carries a fine of 5% of the income received from the date on which the company should have registered until the date of actual registration, but not less than UZS 5 million (Article 219 of the Tax Code). From 1 January 2026, the fine does not apply to businesses switching from turnover tax for the first time if they register within one year after the obligation arises. Such companies are also exempt from corporate income tax for one year and, for six months, may offset the cost of accounting services of up to 4.760.000 soum per month against their tax payments under Presidential Decree No. UP-138 of 19 August 2025.

This section covers VAT registration only. The requirements for a legal address—non-residential premises, registration of the lease agreement with the tax authority, and the prohibition of nominal addresses—and the procedure for registering the company itself are described in our article on business registration. Read it before applying for a VAT number: absence from the registered address and use of a nominal address are high-risk indicators for which a certificate may be refused.

VAT rates: 12%, 0%, and the simplified 6% procedure

The standard rate is 12% of the tax base (Article 258 of the Tax Code). Zero-rating differs from an exemption: at 0%, no output tax is charged, but input VAT on related costs may be credited and refunded from the budget; with an exemption, there is no credit, and the input tax remains part of the cost.

Simplified procedure at a 6% rate

From 1 June 2026 through 31 December 2029, business entities whose principal activity is catering, trade, or the provision of services may voluntarily elect the simplified VAT calculation procedure. It is unavailable to enterprises in which the state holds at least 50% and to large taxpayers. Under the simplified procedure (paragraph 6 of Presidential Decree No. UP-100):

• VAT is charged at 6% on all sales turnover;
• corporate income tax is charged at 0%, and no corporate income tax return is filed;
• input VAT cannot be credited, and tax incentives and partial VAT refunds do not apply;
• any accumulated negative VAT balance is written off;
• customers purchasing from such a company retain the right to credit the VAT charged to them.

Election of, and withdrawal from, the simplified procedure take effect on the first day of the month following the month in which notice is submitted. When returning to the general procedure, the company may claim a credit for VAT embedded in its remaining inventories and long-term assets at their carrying amount. The Tax Committee was required to implement electronic invoices and receipts calculating VAT at 6% within one month after the Decree was issued.

The simplified procedure is attractive to restaurants, retailers, and service companies whose costs contain relatively little input VAT: 6% of turnover without a credit is often lower than 12% less input VAT credits, while corporate income tax is eliminated. For wholesalers and manufacturers with substantial purchases, the general procedure will usually produce the better result.

What is subject to VAT: taxable object, turnover, and place of supply

The taxable objects are turnover from the supply of goods and services for which Uzbekistan is the place of supply, and the importation of goods into the country (Article 238 of the Tax Code). The sale by an entrepreneur of personal property, the transfer of property to a legal successor during a reorganization, the transfer of property into trust management and its return, and foreign-currency transactions are not treated as taxable objects.

Turnover from the supply of goods means the transfer of title for consideration, including a commodity loan, leasing, and instalment sales, as well as a gratuitous transfer unless it is economically justified (Article 239 of the Tax Code). A gratuitous transfer is economically justified if it is intended to generate income, is necessary to preserve or develop the business, or is required by law. Turnover from the supply of services means any activity other than the sale of goods, including the gratuitous use of property. The Tax Code also treats the following as turnover:

• contributions of goods or services to charter capital;
• transfers of property to a participant upon withdrawal from the company, redemption of an ownership interest, or liquidation;
• the provision of goods in lieu of salary or dividends;
• the use of a company's own goods and services for purposes whose costs are non-deductible for corporate income tax;
• the transfer of property to employees and members of management bodies for personal purposes, where the tax on that property was credited;
• tolling raw materials and returnable packaging not returned by the due date;
• the sale or gratuitous transfer of vouchers for goods and services.

The place of supply of goods is Uzbekistan if the goods are located here and do not leave the country, or were located here when shipment began (Article 240 of the Tax Code). Services are generally taxed by reference to the customer: the place of supply is Uzbekistan if the customer conducts business or is located in Uzbekistan by virtue of state registration, its place of management, a permanent establishment, or residence (Article 241 of the Tax Code). Special rules deem Uzbekistan the place of supply for services connected with real estate situated here, including construction, design, and leasing; services physically performed here on movable property, including installation, repair, and storage; catering, tourism, hotel, education, and event services physically provided here; transportation beginning or ending in Uzbekistan; advertising within the country; short-term vehicle hire—up to 90 days for vessels and railway rolling stock and up to 30 days for other vehicles—and electronic services purchased by persons in Uzbekistan.

For goods, the turnover date is the invoice date or, if earlier, the shipment date; for real estate, it is the date of the transfer and acceptance certificate; and for services, it is the date of the invoice or another document confirming performance (Article 242 of the Tax Code). For continuous supplies of electricity, water, gas, utilities, telecommunications, and financial services, as well as construction and long-term contracts, turnover is recognized on the last day of each month. For exports, it is the date the goods actually cross the customs border.

VAT-exempt turnover and imports

An exempt supply is not taxed, but related input VAT cannot be credited. A taxpayer cannot waive a VAT exemption: the right to suspend or decline a tax incentive does not extend to VAT-exempt supplies (Article 75 of the Tax Code). The following supplies are exempt (Article 243 of the Tax Code):

• childcare services in preschool organizations and care services for sick and elderly persons;
• funeral services, religious articles, and rites performed by religious organizations;
• prosthetic and orthopaedic products and equipment for persons with disabilities, prosthetic services, and products made by therapeutic-production workshops;
• goods and services supplied by companies whose only participants are public associations of persons with disabilities, provided persons with disabilities account for at least 50% of both headcount and payroll;
• pension and benefit payment services;
• education at all levels, supplementary education, testing and examinations, supervision and childcare under preschool programs, and clubs and activities for minors;
• health-resort and wellness services supplied under vouchers, and physical-education and sports services supplied by budget-funded organizations;
• housing-stock maintenance and repair services for the public and services supplied by apartment-building management organizations;
• bank bullion bars and measured bullion bars, investment coins, and precious stones;
• goods placed under the duty-free trade customs procedure;
• services of citizens' self-governing bodies and authorized bodies for which a state duty is charged, and land-cadastre work funded from the budget;
• goods and services transferred free of charge under a decision of the President or Cabinet of Ministers or as philanthropic support, and goods and services purchased using loans from international financial institutions;
• state property, including vacant non-agricultural land plots, when sold into private ownership;
• financial services under Article 244 of the Tax Code: banking transactions other than fixed-fee services, processing, sales of ownership interests and securities, factoring and forfaiting, assignments of claims under loans, interest on credits, loans, and leases, and securities transactions;
• insurance, co-insurance, and reinsurance services of professional insurance-market participants (Article 245 of the Tax Code), and Islamic finance transactions (Article 480-4 of the Tax Code).

An exemption applies only if the supplier holds a licence where the activity is licensable. Medical services, passenger transport at uniform tariffs, and sales of residential property are absent from the current version of Article 243: their exemptions have been abolished, and those supplies are taxed at 12%. Instead of an exemption, medical organizations, catering businesses, hotels, tour operators, jewellers, and livestock farms receive a refund of part of the VAT paid under the temporary rules approved by Cabinet of Ministers Resolution No. 745 of 7 November 2024: 80% for jewellers from 1 January 2026, 50% for livestock farmers, and all VAT paid for producers of children's content. An application must be submitted through the personal account within three months after the return is filed.

The following imports are exempt (Article 246 of the Tax Code): goods imported by individuals within duty-free allowances; humanitarian aid and charitable assistance under decisions of the Cabinet of Ministers; goods for diplomatic missions; cultural property of exceptional value for state cultural institutions; technological equipment not manufactured in Uzbekistan included in the list approved by Cabinet of Ministers Resolution No. 352 of 4 June 2021; printed publications and films supplied to state libraries and museums under international exchange programs; currency and securities; goods financed by loans from international financial institutions; and technical equipment for operational-search activities. The equipment exemption applies under the rules established by Cabinet of Ministers Resolution No. 750 of 27 November 2020, with the year of manufacture confirmed during customs clearance.

A taxpayer that makes both taxable and exempt supplies must keep separate records and may credit only the tax attributable to taxable turnover (Article 268 of the Tax Code).

This section lists only exemptions from VAT itself. Industry-specific incentives covering all taxes—for exporters, education, healthcare, IT Park residents, special economic zones, and foreign investments—are collected in our article on tax incentives. It explains the conditions that must be met and the period for which each incentive is granted. Consult it when looking for an incentive for a particular industry rather than for a particular type of supply.

How to calculate VAT: the tax base and formula

The tax base is the transaction price of the goods and services sold, including excise tax but excluding VAT (Article 248 of the Tax Code). Discounts and bonuses granted on the turnover date reduce the base. For barter transactions, gratuitous transfers, and the personal use of company property, the base is determined at market value under the procedure approved by Cabinet of Ministers Resolution No. 489 of 14 August 2020. The tax authority may adjust the base if the price is below or above market value; the taxpayer may challenge the adjustment by substantiating the arm's-length nature of the price. When imported goods are resold, the base may not be less than the value on which import VAT was paid.

Special rules apply when determining the base:

• for construction and long-term contracts, it is the value of work actually completed by the end of each month, excluding materials supplied by the customer (Article 248 of the Tax Code);
• for toll manufacturing, it is the value of the processing services;
• for goods supplied in lieu of salary or dividends and for vouchers, it is the tax-inclusive value;
• for vehicles and residential property purchased from individuals for resale, it is the positive difference between the sale price and purchase price, inclusive of tax;
• for leasing, it is the total of all payments, including the purchase-option payment, less the lessor's interest income (Article 249 of the Tax Code);
• under commission and agency arrangements, the intermediary's base is its fee, while the principal's base is the value of the goods sold; an exemption for the goods does not extend to the intermediary's services (Article 250 of the Tax Code);
• for the sale of an enterprise as a property complex, the base is determined for each asset using an adjustment factor and a consolidated invoice (Article 251 of the Tax Code);
• foreign-currency revenue is converted at the Central Bank exchange rate on the turnover date; exchange differences arising when payment is made in soum at an equivalent value do not change the base (Article 247 of the Tax Code).

At the end of each month, tax is calculated by applying the relevant percentage rate to the base, taking all adjustments into account (Article 265 of the Tax Code). The base may be adjusted for returned goods, cancelled services, changes in price or quantity, and discounts provided for by the contract or pricing policy. The adjustment must be made within one year, or within the warranty period for warranted goods, on the basis of an additional invoice in the period in which the event occurs (Article 257 of the Tax Code). Writing off a purchaser's bad debt also reduces the base under the rules of Cabinet of Ministers Resolution No. 489.

Formula and calculation example

VAT added to a net price: tax = price excluding VAT × 12%. VAT included in a gross price: tax = price including VAT × 12 / 112. Amount payable to the budget = output VAT on sales − creditable input VAT on purchases.

Example. A wholesale company sold goods for UZS 100,000,000 excluding VAT. Output VAT is UZS 12,000,000, and the purchaser receives an invoice for UZS 112,000,000. During the same month, the company purchased goods and services from VAT payers for UZS 70,000,000 excluding tax and received invoices showing UZS 8,400,000 of VAT. VAT payable for the month is UZS 12,000,000 − UZS 8,400,000 = UZS 3,600,000. If a contract states a price of UZS 112,000,000 “including VAT,” the tax is extracted by reverse calculation: UZS 112,000,000 × 12 / 112 = UZS 12,000,000. A restaurant with the same turnover that has elected the simplified procedure pays 6% of UZS 100,000,000, or UZS 6,000,000, but claims no input tax credits.

VAT on imported goods and services

For imported goods, the tax base is the customs value plus excise tax and customs duty (Article 254 of the Tax Code). The rate is 12%, and the tax is paid to the customs authorities under the procedure and within the time limits established by customs law (Article 273 of the Tax Code). The base is calculated separately for each group of goods of the same description, type, and brand. Treatment depends on the customs procedure (Article 277 of the Tax Code): the tax is charged in full upon release for free circulation; it is not paid under transit, customs warehousing, re-export, duty-free trade, free customs zone, or destruction procedures; inward processing is exempt provided the processed products are exported; temporary admission qualifies for full or partial exemption; and on re-import, amounts previously relieved on export become payable. VAT paid at customs may be credited once it has actually been paid (Article 266 of the Tax Code). Since 15 September 2021, special economic zone participants have received an interest-free, unsecured deferral of up to 120 days for VAT and duties on imported raw materials and components under Presidential Resolution No. PP-5243 of 14 September 2021.

Imported services are taxed differently. If a foreign company that is not registered in Uzbekistan supplies services whose place of supply is Uzbekistan—consulting, legal, marketing, software, the lease of real estate situated here, or any other service under Article 241—the purchaser calculates, withholds, and remits VAT as tax agent (Article 255 of the Tax Code). Uzbek legal entities, individual entrepreneurs, and permanent establishments of foreign companies act as agents; where settlement is made through an intermediary, the intermediary is the agent. The base is the foreign person's income inclusive of tax. If the contract was concluded without VAT, the agent charges VAT on top of the service price at its own expense. The payment document confirming remittance gives the agent the right to a credit. This rule does not apply to services exempt under Articles 243–245, such as interest on foreign loans. An agent that is not itself a VAT payer files the tax-agent return no later than the 20th day of the month following the month of payment.

A separate regime applies to electronic services—software, subscriptions, advertising, hosting, and marketplace services—sold online by foreign companies. For sales to individuals, the foreign company registers itself within 30 days after it begins supplying services and pays VAT quarterly (Articles 278–281 of the Tax Code); for sales to legal entities, the purchaser pays the tax as agent.

This is only an overview of imported services. The full list of electronic services under Article 282 of the Tax Code, the foreign-company registration procedure, quarterly reporting, and exceptions to the regime are covered in our article on VAT on foreign electronic services. If a foreign company operates in Uzbekistan not remotely but through an office, construction site, or personnel, see our article on permanent establishments: such an establishment pays VAT itself, with no revenue threshold.

Input VAT credits

A VAT payer reduces its output tax by VAT paid or payable on goods and services actually received, provided all of the following requirements are met (Article 266 of the Tax Code):

• the goods and services are used in activities generating VAT-taxable turnover, including zero-rated turnover;
• an invoice or other supplier document has been received showing the tax separately, and the supplier is registered as a VAT payer;
• on imports, the tax has been paid to the budget;
• for tax-agent transactions and high-risk invoices, the tax has been paid to the budget;
• for exports, there is a bank statement confirming payment by the foreign purchaser.

Exporters credit input tax in proportion to the foreign-currency proceeds received. Compliant exporters with no overdue receivables may claim the credit regardless of whether the proceeds have been received under Presidential Resolution No. PP-5231 of 24 August 2021; however, if payment is not received within 180 calendar days after the goods are released under the export procedure, the credit is reversed. Companies supplying services whose place of supply is outside Uzbekistan retain the right to a credit, as that turnover is treated as taxable. VAT on fixed assets, intangible assets, real estate, and construction in progress, including imported equipment, is credited in full at the time of acquisition.

Upon VAT registration, a company may credit the tax embedded in the carrying amount of remaining inventories and long-term assets as at the registration date: for inventories, based on the actual cost of purchases made during the preceding 12 months attributable to the stock on hand; and for long-term assets, based on depreciated carrying amount without revaluation (Article 266 of the Tax Code). This is the main reason to carry out an inventory count and collect the preceding year's invoices before changing regimes.

VAT that cannot be credited

Under Article 267 of the Tax Code, no credit is available for tax on fixed assets, real estate, and intangible assets used for exempt turnover, or on goods used to construct or repair them; goods and services used for exempt turnover; purchases from non-VAT payers; entertainment expenses; goods received free of charge where the recipient has not paid the tax; or goods used for a company's own needs where the relevant costs are non-deductible for corporate income tax. Passenger cars, motorcycles, helicopters, motorboats, aircraft, their fuel, and alcoholic and tobacco products qualify for a credit only if the purchase is connected with the business activity. The Supreme Court has explained that the connection may be evidenced by a licence, an order assigning a driver, an insurance policy, and operating records (Supreme Court Plenum Resolution No. 4 of 20 February 2023). Non-creditable tax is included in the cost of the goods or in deductible expenses (Article 314 of the Tax Code).

For mixed turnover, the credit is calculated using either the separate or proportional method, based on the taxable proportion of turnover cumulatively from the beginning of the year. If the taxable proportion for the period does not exceed 5%, all input tax may be included in cost (Article 268 of the Tax Code). A previously claimed credit must be reversed when goods are used for exempt turnover; where spoilage or loss exceeds natural-loss norms; when an invoice is invalidated; when VAT-payer status is lost; or where goods are stored at leased premises under agreements not registered with the tax authorities (Article 269 of the Tax Code). For fixed assets, the adjustment is proportional to depreciated carrying amount, except for fully depreciated assets and those commissioned more than 10 years earlier (Article 270 of the Tax Code). If a payable to a supplier is written off as bad debt, the related credit is reversed and may be reinstated when payment is subsequently made (Article 271 of the Tax Code).

High-risk invoices

From 1 January 2026, the tax authorities analyze electronic invoices in real time for risk throughout the supply chain under Presidential Decree No. UP-153 of 4 September 2025; high-risk invoices must not exceed 10% of invoices issued during the period. Tax shown on an invoice classified as high risk cannot be credited by the purchaser until it has been paid to the budget (Article 267 of the Tax Code). The purchaser may pay the tax to the budget as tax agent and claim it as a credit in the payment period (Article 266-1 of the Tax Code); the resulting overpayment of the supplier is credited or refunded. Classification of an invoice as high risk does not deprive the supplier itself of the right to claim input VAT on its purchases. For low-risk invoices, the tax authority may cancel a credit only if it proves a fictitious or sham transaction. A taxpayer must exercise due diligence when selecting counterparties by checking their registration, reputation, facilities, and personnel (Article 15 of the Tax Code); expenses from transactions with unscrupulous suppliers are disallowed where due diligence was not exercised.

This section covers only the conditions for claiming a credit. To learn how and when to issue an electronic invoice, what to do if the system fails, and how to prepare an additional or corrected invoice or a unilateral export document, see our article on invoicing procedure. Accountants need this guidance every month: without a properly issued invoice, VAT on a purchase cannot be credited.

VAT reimbursement (refund) from the budget

If creditable tax exceeds output tax for a month, the negative balance is credited against future VAT payments or refunded to the taxpayer's account (Articles 272 and 274 of the Tax Code). No separate application has been required since 1 January 2022: the taxpayer gives notice of the refund when filing its return. Without issuing an order, the tax authority conducts a desk audit of the validity of the amount within 30 days from the date of notice (Article 138 of the Tax Code), decides to reimburse the amount or issues a reasoned refusal, and makes the refund no later than 30 days from the notice date. The detailed procedure is set out in the Reimbursement Regulation approved by Cabinet of Ministers Resolution No. 489 of 14 August 2020. Since 28 May 2026, amounts of up to UZS 10 million are refunded automatically, without an application or audit.

If a desk audit following an accelerated refund finds the amount unjustified, it must be repaid to the budget with late-payment interest accruing from the refund date. Reimbursement may be refused where supporting documents are missing; invoices were issued outside the electronic invoicing system; abuse of rights or sham transactions are identified; due diligence was not exercised; counterparties in the chain failed to calculate VAT; there are no documents proving the lawful origin of the goods; or participants in the supply chain are related. These grounds appear in the Reimbursement Regulation as amended by Cabinet of Ministers Resolution No. 1 of 7 January 2021. Applying a tax-gap ratio when reimbursing VAT is prohibited under Presidential Resolution No. PP-292 of 4 September 2023. A reimbursement desk audit is the only type of desk audit during which the tax authority may inspect premises, demand documents, and summon the taxpayer.

Refunds are becoming automatic. The Tax Committee was instructed to implement automatic reimbursement based on real-time invoice risk assessments by 1 October 2026. From 1 January 2027, manual reimbursement for low-risk taxpayers will be abolished, while low-risk taxpayers will receive negative balances arising from zero-rated turnover and real-estate purchases within three days under Presidential Decree No. UP-95 of 19 May 2026. From 1 April 2026, foreign citizens may obtain tax-free VAT refunds at all international airports on purchases of at least UZS 300,000: the purchaser receives 85% of the tax rate and the system operator receives 15%, under Presidential Resolution No. PP-78 of 5 March 2026.

VAT reporting and payment

The tax period is one month (Article 259 of the Tax Code). A return must be filed at the place of tax registration no later than the 20th day of the following month, and the tax must be paid by the same deadline (Article 273 of the Tax Code). The return includes information from the purchase and sales ledgers; intermediaries and freight forwarders also submit information from their received- and issued-invoice journals. Foreign companies supplying electronic services to individuals file quarterly by the 20th day of the following month through their personal account (Article 281 of the Tax Code).

When making a supply, legal entities, individual entrepreneurs, and self-employed persons must issue invoices electronically through the electronic invoicing system; no invoice is required if the purchaser receives a cash-register receipt (Article 47 of the Tax Code). The forms and completion procedure were approved by Cabinet of Ministers Resolution No. 489. The VAT number must appear on all invoices, transport documents, and payment documents (paragraph 7 of the Regulation). A seller that is not a VAT payer, or a seller of exempt goods, that states VAT on an invoice must pay a fine equal to 20% of the stated tax and remit that tax to the budget (Article 225 of the Tax Code). Documents used to calculate tax must be retained for three years after the year of payment (Article 22 of the Tax Code).

An error in a filed return is corrected by submitting an amended return. If it is submitted before the tax authority identifies an understatement or orders an audit, and the arrears and late-payment interest are paid beforehand, no liability arises (Article 83 of the Tax Code). In response to a desk-audit demand, an amended return or explanation of the discrepancies must be submitted within five days (Article 138 of the Tax Code). From 1 July 2026, account transactions are unblocked automatically once explanations are submitted.

VAT penalties and liability

Where there is a mitigating circumstance, or where the offender admits liability and voluntarily pays the fine within 10 days after the decision, the financial penalty is reduced by half; it is doubled for a repeat violation (Article 218 of the Tax Code). Until 1 January 2028, small businesses may remedy on their own violations identified by the tax-risk assessment program: no tax audit is ordered for a risk amount of up to UZS 500 million, and no on-site inspection is ordered for an amount of up to UZS 100 million.

This section lists only VAT-related penalties. Our article on tax offences and audits explains desk and on-site audits, tax audits, conduct treated as evasion under the Criminal Code, and how to challenge a tax-authority decision. It will be useful if you have already received a desk-audit demand.

VAT on leases, intermediaries, and special regimes

The place of supply for a lease of real estate situated in Uzbekistan is always Uzbekistan (Article 241 of the Tax Code). A VAT-paying company that leases premises charges 12% on the rent. An individual landlord without individual-entrepreneur status does not pay VAT: the corporate tenant withholds only personal income tax as tax agent. An individual entrepreneur pays personal income tax at the rate applicable to individuals, rather than turnover tax, on rental income (Article 465 of the Tax Code). A lease agreement must be registered with the tax authority: goods stored at premises under an unregistered agreement cause the tenant to lose its right to a credit (Article 269 of the Tax Code). For a lease of state property, the authorized body calculates and pays the lessor's tax as tax agent; for a purchase of state property, the purchaser does so (Article 256 of the Tax Code).

An intermediary under a commission, agency, or freight-forwarding agreement pays VAT only on its fee, while the principal pays VAT on the full value of goods sold (Article 250 of the Tax Code). If the principal is a foreign person not registered in Uzbekistan, the intermediary becomes the tax agent (Article 255 of the Tax Code). Under joint-operation, trust-management, and concession arrangements, the VAT-payer obligations rest with the authorized representative, trustee, or concessionaire, which issues invoices and keeps separate records for each agreement (Article 275 of the Tax Code). Upon reorganization, uncredited tax passes to a VAT-paying legal successor; if the successor is not a VAT payer, the reorganized company reverses the credit (Article 276 of the Tax Code).

Exports of services are not zero-rated: if the place of supply under Article 241 is outside Uzbekistan, no VAT is charged at all, while related input tax remains creditable. Services connected with international transportation and customs transit are taxed at 0% (Article 263 of the Tax Code). Goods placed under the free customs zone procedure are imported without VAT (Article 277 of the Tax Code); special economic zone participants receive VAT incentives under the Code and qualify for accelerated refunds (Article 473 of the Tax Code). From 1 April 2026, payment organizations, payment-system operators, marketplaces, and microfinance organizations are not eligible for IT Park resident tax incentives under Presidential Resolution No. PP-388 of 26 December 2025.

What changed in 2025–2026

• From 1 January 2026, listed agricultural products other than cotton and grain are zero-rated, with automatic reimbursement within three days, and electronic invoices are analyzed for risk in real time under Presidential Decree No. UP-153 of 4 September 2025; the list was approved by Order No. 3905 of the Ministry of Agriculture and Tax Committee dated 21 July 2026.
• From 1 January 2026, businesses switching from turnover tax for the first time pay no corporate income tax for one year, are not fined for late VAT registration during that year, and may deduct accounting costs of up to 4.760.000 soum per month under Presidential Decree No. UP-138 of 19 August 2025 and Article 219 of the Tax Code.
• From 1 April 2026, accelerated refunds for large taxpayers apply only to those on the approved list, while the tax-free scheme for foreign visitors operates at every international airport for purchases of at least UZS 300,000 under Presidential Resolution No. PP-388 of 26 December 2025 and Presidential Resolution No. PP-78 of 5 March 2026.
• From 1 June 2026, the VAT threshold is 12,000 BCAs, a simplified 6% procedure applies to catering, trade, and services, certificate suspension and automatic recognition of importers as VAT payers have been abolished, and amounts of up to UZS 10 million are refunded automatically under Presidential Decree No. UP-100 of 26 May 2026.
• From 1 January 2027, low-risk taxpayers will receive negative balances from zero-rated turnover and real-estate purchases automatically within three days, and manual reimbursement for low-risk taxpayers will be abolished under Presidential Decree No. UP-95 of 19 May 2026 and Presidential Decree No. UP-100.

Frequently asked questions

Does an individual entrepreneur pay VAT?

Yes, if annual income from the sale of goods and services exceeds 12,000 BCAs (5.280.000.000 soum), or if the entrepreneur voluntarily registers for VAT (Article 237 of the Tax Code). Below the threshold, an individual entrepreneur pays turnover tax at 1% and may not sell goods or services with VAT: tax stated on an invoice by a non-payer must be remitted to the budget, along with a 20% fine. Self-employed persons that exceed the threshold become subject to tax under the procedure established for individual entrepreneurs. The threshold is based on income for the calendar year; for a person registering for the first time, it is prorated by the number of days from registration.

How can a company switch from VAT back to turnover tax?

A company may return if its aggregate income for the current year has not exceeded the threshold and at least 12 months have passed since a voluntary transition to VAT (Article 462 of the Tax Code). Notice must be filed through the personal account no later than 10 working days before the beginning of the calendar year, and the company ceases to be a VAT payer from 1 January. Before leaving, it must reverse VAT credits for inventories on hand and for the depreciated carrying amount of fixed assets, because loss of VAT-payer status is a ground for adjustment (Article 269 of the Tax Code). Companies ineligible for turnover tax because of their activity cannot switch back.

Is VAT charged when a company rents housing for its employees from an individual?

No. An individual without entrepreneur status is not a VAT payer, so rent is paid without VAT; the company merely withholds personal income tax as tax agent. VAT arises if the landlord is a legal entity under the general taxation procedure or a VAT-paying individual entrepreneur: 12% is then added to the rent, and the corporate tenant may claim it as a credit if the housing is used in taxable activities. In both cases, the lease agreement must be registered with the tax authority.

How is VAT at 12% added to an amount or extracted from a VAT-inclusive price?

To add VAT to a net amount, multiply the price excluding VAT by 0.12: on a price of UZS 5,000,000, the tax is UZS 600,000 and the purchaser pays UZS 5,600,000. To extract VAT from a price that already includes it, multiply the amount by 12 and divide by 112: of UZS 5,600,000, VAT is UZS 600,000 and the price excluding VAT is UZS 5,000,000. The tax base is the transaction price including excise tax and excluding VAT, so for excisable goods, excise tax is added to the price before VAT is calculated.

What should a purchaser do if a supplier's invoice is classified as high risk?

VAT shown on that invoice cannot be credited until the tax is paid to the budget (Article 267 of the Tax Code). The purchaser may remit the tax itself as tax agent and claim it as a credit in the month of payment; the supplier may apply the resulting overpayment against future payments or obtain a refund (Article 266-1 of the Tax Code). The alternative is to wait for the supplier to pay the tax on the invoice. Risk is assigned automatically through real-time analysis of the supply chain, so counterparties should be checked in advance through the Tax Committee's services. This is the due diligence required by Article 15 of the Tax Code.

Does a company subject to turnover tax pay VAT on imports?

For imported goods, yes. Every importer pays VAT at customs because persons moving goods across the border are recognized as taxpayers regardless of their tax regime (Article 237 of the Tax Code). The base is the customs value plus customs duty and excise tax, and the rate is 12%. A company subject to turnover tax cannot claim the tax paid as a credit; it is included in the cost of the goods. Until May 2026, an import automatically moved the company to the general taxation procedure. Presidential Decree No. UP-100 of 26 May 2026 abolished that rule, so a single import shipment no longer requires VAT registration unless the income threshold has been exceeded.