VAT on foreign digital services

Foreign legal entities providing services to individuals in digital form, if the place of service is recognized as the territory of Uzbekistan, must register with the tax authorities of Uzbekistan.

Registration with the tax authority is carried out based on the application of a foreign legal entity submitted at tax.uz. The application should be filed no later than 30 calendar days from the date of commencement of services in digital form.

The place of service in digital form is recognized as the territory of Uzbekistan if:

• the purchaser's place of residence is Uzbekistan
• the bank account used by the purchaser to pay for services is opened, or the payment system operator through which the purchaser makes payment for services is located, in the territory of Uzbekistan
• the purchaser's network address used to purchase services is registered in Uzbekistan
• international country code of the telephone number used to purchase or pay for services is Uzbekistan

Foreign legal entities providing services to individuals in digital form are required to pay value added tax (VAT) in Uzbekistan at the rate of 12% on such services.

Foreign legal entities do not issue invoices and do not maintain registers of purchases and sales related to the provision of digital services.

Tax reporting and payment of tax should be made no later than the 20th day of the month following a calendar quarter.

List of digital services

Services in digital form include automated services provided via the Internet using information technologies. In particular, such services include:

1. provision of rights to use software (including games delivered via the Internet), as well as databases, their updates and additional functional capabilities via the Internet, including by providing remote access to them
2. provision via the Internet of rights to use electronic books (publications) and other electronic publications, informational, educational materials, graphic images, musical works with or without text, audiovisual works, including by providing remote access to them for viewing or listening via the Internet
3. provision of advertising services on the Internet, including the use of programs for electronic computers and databases operating on the Internet, as well as the provision of advertising space and time for advertising on the Internet
4. provision of services for posting offers for the purchase (sale) of goods (services) and property rights on the Internet
5. provision of services via the Internet to provide technical, organizational, informational and other capabilities, implemented using information technologies and systems, to establish contacts and conclude transactions between sellers and buyers. In particular, such services include the provision of a trading platform operating on the Internet in real time, where potential buyers offer their price through an automated procedure and the parties are notified of the sale by means of an automatically generated message
6. ensuring and (or) maintaining a presence on the Internet for personal purposes or for the purpose of carrying out economic activities, supporting electronic resources of users (sites and (or) pages of sites on the Internet), ensuring access to them for other users of the Internet, providing users with the opportunity to modify them
7. automatic support of programs at a distance and online, provision of services for the administration of information systems, websites and (or) website pages on the Internet
8. storage and processing of information provided that the person who submitted this information has access to it via the Internet
9. providing real-time computing power for placing information in the information system
10. provision of domain names, provision of hosting services
11. supply of information generated automatically when the buyer enters data via the Internet, provision of automated services for data retrieval, selection and sorting according to requests, provision of the specified data to users via information and telecommunications networks. In particular, such information supplies include real-time stock exchange reports, real-time automated translation of texts
12. provision of services for searching and (or) providing the customer with information about potential buyers
13. providing access to search engines on the Internet
14. providing statistics on websites via the Internet

Exceptions

Services in digital form do not include:

• if ordering via the Internet, the delivery of goods or provision of services is actually carried out without using the Internet
• sale of programs for computers (including computer games) and databases on physical devices
• provision of consulting services by e-mail
• provision of services for procuring access to the Internet