The key facts

  • The procedure for automatic VAT offset on import was approved by the Ministry of Economy and Finance and the Tax Committee, registered with the Ministry of Justice on October 31
  • It applies to four categories of enterprises, including large taxpayers and electrical equipment manufacturers
  • It takes effect on January 1, 2027; the offset is not carried out during tax audits or when there is tax debt

Procedure for automatic VAT offset approved

The Ministry of Economy and Finance and the Tax Committee have approved a joint regulation on the procedure for automatic offset of value added tax on the import and sale of goods. The document was registered with the Ministry of Justice on October 31 and published on Lex.uz, reports Spot.uz. The regulation governs the offset of excess VAT paid by a taxpayer on the sale of goods and services against the tax accrued on the import of goods. To this end, data exchange between tax and customs authorities is being established.

Who can use the offset

The procedure applies to four categories of enterprises: companies supervised by the Interregional Inspectorate for Large Taxpayers; manufacturers of electrical products importing raw materials and components for production; participants in foreign economic activity — low-risk VAT payers; as well as enterprises with a sustainability rating of at least BBB (except for the public sector).

How the procedure will be processed

To arrange the offset, the taxpayer must declare it in the cargo customs declaration, entering the letter code VZ in box 47 (calculation of customs payments), in the TU column (method of payment). The Customs Committee will send an electronic request to the Tax Committee to confirm the excess VAT payment from which the tax payable on the import of goods will be compensated. If the amount is confirmed, the Tax Committee will respond to the customs authorities and automatically draw up an offset act; after that, the customs authorities will process the declaration and enter the payment data into the taxpayer's personal customs account.

Restrictions and effective date

The offset is not carried out when a tax audit of the taxpayer is underway. In addition, if the enterprise has tax debt (including deferred debt), the remaining amount after the offset cannot be less than its size. The new procedure takes effect on January 1, 2027; it is expected to automate VAT offset-related procedures and create conveniences for importers. Earlier, Spot reported that in Uzbekistan it is proposed to put tax benefits into effect before their inclusion in the Tax Code.