Uzbekistan enforces e-commerce tax regulations as Temu falls short

The Chinese-owned marketplace Temu has failed to pay approximately 46 billion UZS in taxes to Uzbekistan. This was announced today, April 1, during a press conference at the Agency of Information and Mass Communications (AOKA) by Mubin Mirzaev, First Deputy Chairperson of the Tax Committee.

Mirzaev noted that taxing electronic commerce systems like Temu has become a global challenge. He also emphasized that all digital platforms have been issued warning letters regarding their tax obligations.

“Preliminary calculations revealed that Temu failed to pay about 46 billion UZS in taxes. A formal notice has been sent to the marketplace concerning these unpaid taxes. Once the taxes are paid, we will provide an opportunity for them to legalize their operations,” said Mirzaev.

Mirzayev added that the calculated taxes are yet to undergo verification. If the tax debts remain unpaid, a thorough investigation will be conducted, and additional information on tax compliance will be provided.

At the end of 2024, Uzbekistan introduced new regulations for electronic commerce. Starting from December 28, all international platforms operating in the country were required to register as legal entities. Initially, Temu ignored this requirement, but later, in March, it registered as a legal entity in Uzbekistan. On March 20, however, the marketplace was blocked for failing to pay Value-Added Tax (VAT) on its operations in the country.