Uzbekistan VAT on digital services

VAT obligations for non-resident providers of e-services

Uzbekistan introduced VAT obligations in its Tax Code on non-resident providers and intermediaries for B2C digital or electronic services from 1 January 2020. There is no VAT registration threshold, and returns must be filed monthly. There is av obligation to appoint a local tax agent. B2B transactions are excluded and reported under the reverse charge mechanism.

The current VAT rate in Uzbekistan is 15%, but an Uzbek VAT rate cut is scheduled for 2023. VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

What digital services are liable to Uzbek VAT?

Fees and income from the following digital services are liable to VAT when provided to an Uzbek consumer:

• Streaming music and video
• Rights to the use of software via the internet
• Apps
• E-learning
• E-books and online journals or newspapers
• SaaS and cloud-based software, data storage or processing
• Advertising and online listing of goods or services
• Auction websites
• Internet domain name acquisition and support
• Gaming
• Automated translations
• Consulting services via e-mail

Follow VAT Calc’s global VAT and GST on digital services tracker for live updates on worldwide reforms.

Determining if Uzbek VAT is due

Under the destination principle adopted by Uzbekistan requires the provider to establish that their consumer is resident and/or consuming the services in the country. Providers may rely on the following evidence:

• Postal / billing address of the customer
• IP address of the device used to access the services
• Country dialling code
• Payment source – bank or credit card address

VAT registration and compliance

Non-residents must apply for an Uzbek VAT number immediately as there is no VAT registration threshold. A local tax representative is required to coordinate with the tax office. Once registered, returns should be filed monthly. Filings and any VAT payment must be submitted by the 20th of the following month.

Marketplaces and intermediaries VAT liabilities

The Tax Code includes any online introduction or intermediary services for digital services – and therefore non-resident marketplaces will become responsible for the VAT of their third-party sellers of services on their platforms.

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