VAT in Uzbekistan

Standard VAT rate — 12% (no increase before 2028)

The standard VAT rate in Uzbekistan is 12%, and under Presidential Decree No. UP-229 dated 27 December 2024 it will not be increased before 1 January 2028. VAT is levied on: the supply of goods and services in Uzbekistan by VAT-registered taxpayers; the import of goods into Uzbekistan; and the receipt of services from foreign suppliers where the place of supply is deemed to be Uzbekistan. The rate has been 12% since 1 January 2023.

VAT registration threshold

All legal entities with aggregate annual income exceeding UZS 1 billion are required to register for VAT under the standard tax regime. Entities at or below the UZS 1 billion threshold may use the simplified turnover tax regime (Tax Code, Art. 461, as amended from 1 January 2026), which is closed to importers, excise producers, subsoil extractors and certain other businesses — under which turnover tax replaces both CIT and VAT. Permanent establishments of foreign legal entities in Uzbekistan are subject to VAT registration regardless of turnover. Bond Stone advises on VAT registration obligations for foreign investors establishing operations in Uzbekistan.

Import VAT

Goods imported into Uzbekistan are subject to VAT at the point of importation — 12% on the customs value plus customs duties. Import VAT is generally recoverable by VAT-registered importers as input VAT. Some goods have time-limited customs duty and VAT exemptions on importation, so check the current list before relying on one. Bond Stone advises on import VAT planning for investors importing equipment, components, and raw materials into Uzbekistan.

Reverse charge — services from foreign suppliers

Services received from foreign suppliers are subject to reverse charge VAT where the place of supply is deemed to be Uzbekistan — the Uzbek recipient accounts for output VAT on the service value. Common affected services include management services, technical advisory, IT services, and licences received from foreign group entities. Note: in addition to VAT, payments to foreign entities for services (including management and consulting services), royalties, and rents are subject to WHT at 20% under the Uzbek Tax Code — DTT access may reduce this rate. The reverse charge output VAT is deductible as input VAT by the Uzbek recipient (subject to normal input VAT deduction rules). Bond Stone advises on reverse charge VAT obligations for foreign-invested Uzbek entities receiving intercompany services.

VAT exemptions — key categories

The Uzbek Tax Code provides VAT exemptions for: exports of goods (0% rate); certain financial and insurance services; educational services (specific categories); and goods and services within certain government programmes. From 1 April 2024, VAT exemptions for medical services, medicines, and veterinary products were abolished — these are now subject to VAT at the standard 12% rate. Bond Stone advises on the VAT treatment of specific supply categories as part of investment structuring mandates.

SEZ — VAT treatment of goods

SEZ participants may defer import VAT for up to 120 days, and excess input VAT is refunded by a simplified procedure (Law No. ZRU-604, Art. 39). Where a special customs regime applies, VAT can arise when goods move from the SEZ to the domestic market. Bond Stone advises SEZ residents on managing VAT compliance under the SEZ customs procedure and on the VAT implications of goods flows between the SEZ and the domestic market.