Tax rate by region Uzbekistan

Select region

Understanding SaaS Sales Tax in Uzbekistan: A Comprehensive Guide for Businesses

Uzbekistan adopted a Value Added Tax (VAT) system in 1992 to streamline tax collection and strengthen public finances. The standard VAT rate for most goods and services, including SaaS (Software as a Service), is 15%. However, certain categories, like educational services, qualify for reduced VAT of 12%. Businesses must comply with specific requirements, including monthly filing and payment deadlines, and e-invoicing mandates. Consulting with tax professionals can ensure accurate compliance.

Understanding the nuances of Uzbek sales tax is crucial for SaaS businesses. This guide delves into the essential aspects, offering actionable advice for effective management.

Uzbekistan

Uzbekistan implemented a VAT system in 1992 to improve tax compliance and enhance public revenue.

Official government link: State Tax Committee

15.00%

E-products and services VAT/Sales tax rate

12.00%

Reduced tax rate

Reduced tax rate product categories

No specific digital goods or services have reduced rate

Exempted product categories

Educational services are exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

No later than 30 days after the first sale

Online registration possible

Yes

Local representative needed

Registration procedure

To register with the tax authority, a foreign legal entity must submit a registration application along with an extract from the register of foreign legal entities of its country of origin or another document verifying its legal status. The registration application must be submitted within 30 calendar days.

List of digital and electronic services liable for tax

Streaming music and video, rights to use software via the internet, and mobile applications and games are included. It also covers e-learning services, e-books, online journals, newspapers, and magazines. Additionally, it includes Software-as-a-Service (SaaS) and other cloud-based software, data storage and processing services, and online advertising services. Websites listing goods and services for sale, auction websites, internet domain name registration and hosting, automated translations, computer processing services, and consulting services provided via email are also part of this list.

Penalties

The late registration penalty for VAT amounts to 5% of the revenue subject to VAT. This penalty is applicable from the due date of VAT registration until the actual date of registration. The penalty cannot be less than UZS 5 million (approximately USD 445).

A legal entity’s official or an individual taxpayer will face administrative penalties for submitting tax returns after the deadline equal to 20% of the underpaid or belatedly paid amount.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly

Filing deadline

By the 20th day after the reporting period

E-invoicing requirements

Yes

Record keeping

Relevant records should be kept for at least 3 days

Effortless Subscription Management and Billing

E-invoicing and Professional Guidance:

Uzbekistan has embraced electronic invoicing, a modern system that facilitates efficient data exchange. Businesses can leverage e-invoicing platforms to automate VAT calculations and ensure compliance. Consulting experienced tax professionals can provide valuable insights and minimize compliance risks.

Practical Recommendations for Effective SaaS VAT Management:

1. Streamline your record-keeping: Implement a robust system to organize and manage invoices, receipts, and other VAT-related documents. This will ensure easy access during audits or compliance checks.
2. Leverage technology: Utilize e-invoicing platforms to automate VAT calculations and ensure accuracy. E-invoicing simplifies compliance and reduces manual errors.
3. Stay informed: Keep abreast of changes in VAT regulations and ensure your compliance processes are updated accordingly.
4. Seek expert advice: Consult tax professionals for guidance on complex VAT matters, ensuring your business operates within the legal framework.

Ready to get started?

We’ve been where you are. Let’s share our 18 years of experience and make your global dreams a reality.

Talk to an Expert