Zero VAT rate introduced for agricultural products

In Uzbekistan, a zero value-added tax (VAT) rate has been introduced for the sale of agricultural products starting from January 1. This is stipulated in the presidential decree “On Measures to Introduce a Simplified Procedure for Calculating Value-Added Tax in the Agricultural Sector,” adopted on September 4, 2025.

According to the document, starting from January 1, 2026:

– a zero VAT rate will be applied to the sale of agricultural products grown by agricultural producers, with the exception of cotton and grain;
– the list of agricultural products subject to the zero VAT rate will be approved by the Ministry of Agriculture and the Tax Committee and published on their official websites;
– VAT paid on goods and services purchased for the production of listed agricultural products will be subject to reimbursement (refund);
– VAT refunds to agricultural producers (excluding cotton and grain) will be carried out automatically within three days;
– a system will be introduced to automatically analyze electronic invoices (E-invoices) in real time based on risk levels when offsetting VAT amounts along a single supply chain, developed jointly with experts from the International Monetary Fund.

For E-invoices classified as high-risk, the following conditions will apply:

– their share must not exceed 10 percent of the total number of E-invoices issued during the reporting period;
– the VAT amount will be credited only after it has been fully paid to the state budget by the seller (supplier) or the buyer (customer).

It is worth noting that earlier it was reported that electric vehicle charging stations in Uzbekistan have been exempted from customs duties until January 1, 2028.