Standard VAT rate — 12% (stable until 2028)

The standard VAT rate in Uzbekistan is 12% — stable until 1 January 2028 under Presidential Decree No. UP-229 dated 28 December 2024. This rate stability provides investors with certainty for investment planning and financial modelling. 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 standard rate has remained at 12% following the 2019 tax reform.

VAT registration threshold

All legal entities with annual turnover exceeding UZS 1 billion are required to register for VAT under the standard tax regime. Entities below the UZS 1 billion threshold may opt for the simplified turnover tax regime — 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. Certain goods benefit from customs duty and VAT exemptions on importation — including equipment imported for hotel, business centre, and retail store construction and renovation projects (until 1 March 2026), and textile production raw materials (until 1 January 2027). 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

Goods imported into Uzbekistan’s Special Economic Zones are subject to specific VAT treatment — SEZ residents may benefit from VAT deferral or exemption on goods within the SEZ perimeter under the applicable SEZ operating conditions. When goods are transferred from the SEZ into the Uzbek domestic market, VAT becomes payable. 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.

VAT Registration — Foreign Investor

VAT · Uzbekistan · Corporate

Advising a foreign investor establishing an Uzbek subsidiary on VAT registration — turnover threshold analysis, standard vs simplified tax regime decision, VAT registration procedure, and ongoing quarterly filing obligations.

Import VAT — Equipment Importation

VAT · Uzbekistan · Manufacturing

Advising on import VAT for equipment imported into Uzbekistan — recovery of import VAT as input VAT, available equipment import VAT exemptions, and interaction with SEZ goods procedures as an alternative to outright importation.

Reverse Charge — Intercompany Services

VAT · Uzbekistan · Corporate

Advising on reverse charge VAT on management fee and technical services payments to a foreign parent — output VAT accounting, input VAT recovery, and net VAT position for the Uzbek subsidiary.

Medical Services — VAT Change 2024

VAT · Uzbekistan · Healthcare

Advising a pharmaceutical and healthcare investor on the abolition of the VAT exemption for medical services from 1 April 2024 — impact on pricing, VAT registration obligations, and restructuring supply arrangements to manage the VAT cost.

SEZ Goods — VAT Compliance

VAT · Uzbekistan · SEZ

Advising an SEZ resident on VAT compliance for goods imported into the SEZ — VAT treatment within the SEZ perimeter, VAT trigger on transfer to the domestic market, and documentation requirements for SEZ goods flows.

Simplified Tax Regime — Threshold Planning

VAT · Uzbekistan · Corporate

Advising a small foreign-invested Uzbek entity on the VAT registration threshold — comparing the standard CIT and VAT regime against the simplified turnover tax regime, and threshold monitoring as the entity grows.