Sunday, 14, July, 2024

On August 24, the President of Uzbekistan signed the Improving administration of value added tax Decree. The Decree was adopted to help "bona fide taxpayers to perform their tax obligations." It takes into account the proposals voiced in the framework of the President's open dialogue with business leaders on August 20.

From October 1, 2021 the procedure will be established for offsetting the amount of value added tax payable on actually received goods and services used for exported goods, regardless whether foreign exchange earnings were received the taxpayer's accounts in the onshore bank in Uzbekistan or not.

This opportunity applies only to disciplined bona fide taxpayers who ensure the timely receipt of foreign exchange earnings for the past year and do not have overdue receivables under export contracts.

In case of non-receipt of foreign exchange earnings or part of it to the exporter's account in onshore banks of Uzbekistan within 180 calendar days from the date of release of goods in the export customs regime, the amount of value added tax attributed for the offset or its corresponding part shall be excluded from the offset in accordance with the established procedure.

From January 1, 2022, the mandatory requirement for a separate application to the tax authorities for the refund of the negative amount of value added tax will be canceled.

When submitting tax reports for the relevant tax period, a taxpayer has the right to apply for a refund of a negative amount of value added tax, notifying the tax authorities.

By the end of 2021, a procedure will be developed for offsetting the amounts of value added tax paid on the import of goods and the sale of goods and services. It will be implemented on an experimental basis until December 31, 2022.

Latest in Business