Tax rate by region Uzbekistan

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

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 12%. Businesses must comply with specific requirements, including quarterly 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.

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Uzbekistan

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

Official government link: State Tax Committee

12.00%

E-products and services VAT/Sales tax 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

No

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

Quarterly

Filing deadline

By the 20th day after the reporting period

E-invoicing requirements

Yes

Record keeping

Relevant records should be kept for 3-5 years

How-To Guides: Uzbekistan SaaS VAT

Step: 1 Threshold

Effective January 1, 2020, Uzbekistan requires non-resident vendors (including online platforms) of digital services to consumers (B2C) in Uzbekistan to register for and collect VAT, regardless of the sales amount.

Step: 2 Business Registration

Foreign suppliers must register via the VAT Office for Internet Companies on the official tax portal (tax.uz).

Step: 3 Obtain TIN

Upon registration, the foreign entity is assigned a Taxpayer Identification Number (TIN) used for VAT reporting and payment.

Step: 1 Standard VAT Rate

Apply the standard VAT rate, which is currently 12% (reduced from 15% in 2023).

Step: 2 Determine if you need to register.

To calculate your tax amount, use the following formula:

 

VAT Amount = Net Price x 12%

Step: 3 Reverse Charge (B2B)

Yes. The supply of electronic services to registered Uzbek legal entities (B2B) is subject to the Reverse Charge Mechanism. The foreign seller does not charge VAT; the local business buyer is responsible for declaring and paying the tax.

Step: 1 Selling B2C

You are required to charge 12% VAT on all digital service sales to individual consumers in Uzbekistan once registered.

Step: 2 Selling B2B

Do not charge VAT if the customer is a registered Uzbek legal entity. The buyer is liable for the tax locally.

Step: 3 Invoice Requirements

Foreign providers registered via the VAT Office are generally exempt from issuing formal Uzbek electronic tax invoices (E-Factura). However, for commercial purposes, you should issue a receipt/invoice containing:

 

• Supplier Name & TIN
• Buyer Name
• Service Description
• Transaction Value & Currency
• Tax Amount (for B2C)

Step: 1 Filing Interval

File the VAT return Quarterly.

Step: 2 Filing Deadline

Returns must be submitted by the 20th day of the month following the reporting quarter (e.g., April 20 for Q1).

Step: 3 Submission

Submit returns electronically via the tax.uz VAT Office portal. Payments can be made in foreign currencies (USD, EUR, etc.) to the Tax Committee’s accounts.

Step: 4 Record Keeping

Maintain accurate records of sales and customer location evidence for a minimum of 3-5 years (standard limitation period).

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Uzbekistan’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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