Uzbekistan operates a value added tax regime that applies to the supply of goods and services within the country and to the importation of goods, with the standard rate set at twelve per cent. Following a comprehensive reform of the Uzbek Tax Code that came into force in 2020, the indirect tax system was consolidated and the rules governing foreign companies were materially clarified. For foreign investors and companies supplying digital services or goods into Uzbekistan, understanding how VAT and indirect taxes are structured is a practical threshold question before market entry or cross-border contracting.
H2: The legal framework
Indirect taxation in Uzbekistan is governed by the Tax Code of the Republic of Uzbekistan, which is administered by the State Tax Committee. VAT applies at the standard rate of twelve per cent on domestic supplies and on imports, with a zero rate applying to exports of goods. A limited range of supplies – including certain medical goods, educational services, and financial services – benefit from exemptions under the Tax Code. Excise duties apply to a defined list of goods, principally tobacco, alcohol, petroleum products, and certain manufactured items, and are charged at rates specific to each category. Customs duties and fees apply to the importation of goods, administered separately under customs legislation.
For foreign legal entities supplying electronic or digital services to Uzbek consumers or businesses, a registration obligation exists under the Tax Code even without a physical presence in Uzbekistan. This obligation is sometimes described as an Uzbek equivalent of the European reverse-charge or digital services VAT mechanism, and it has been enforced by the State Tax Committee since 2020. Foreign companies in this position are required to register for VAT purposes, charge VAT on covered supplies, and file periodic returns.
Companies operating through a representative office or permanent establishment in Uzbekistan are subject to the full domestic VAT compliance regime, including invoicing requirements, input VAT recovery, and regular reporting to the State Tax Committee.
H2: What this means in practice for foreign companies
The 2020 Tax Code reform brought greater structural predictability, but the administrative rules – particularly around input VAT recovery, invoicing formats, and the treatment of cross-border transactions – continue to evolve and are interpreted differently depending on the activity type and entity structure used. Foreign investors should note that Uzbekistan is a member of the Commonwealth of Independent States but is not a member of the Eurasian Economic Union, which means that the EAEU's harmonised indirect tax rules do not apply. Cross-border supplies between Uzbekistan and Russia, for example, are governed by bilateral arrangements and by each country's domestic rules rather than by any single supranational framework.
Vetrov & Partners advises on the Russian-law dimension of cross-border arrangements involving Uzbekistan, including the Russian VAT and customs treatment of supplies from or through Uzbekistan, and the structuring of Russia–Uzbekistan commercial arrangements. For advice on Uzbek domestic tax law, the firm works with trusted local counsel in Tashkent.
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— Nodira Yusupova Contributing Regional Analyst — Uzbekistan, Vetrov & Partners vetrovpartners.com/contributions/
Nodira Yusupova advises on Uzbek law aspects of cross-border transactions and inbound investment. She contributes regional analysis to Vetrov & Partners on market entry, tax, and regulatory matters in Uzbekistan.
This publication is provided for informational purposes only and does not constitute legal advice under Russian or any other applicable law. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Vetrov & Partners is a Russian-qualified law firm. For matters governed by foreign law or requiring local admission in another jurisdiction, we collaborate with trusted counsel in the relevant jurisdiction. For advice regarding your particular situation, please contact info@vetrovpartners.com.