A Tax-Free system is being launched in Uzbekistan

From 1 January 2023, foreigners will be able to reclaim VAT (Value Added Tax) for purchases made in Uzbekistan.  This was reported by the State Tax Committee.

In this regard, on 8 November, the decision of the Cabinet of Ministers was adopted "On the introduction of the system of refund of value added tax for goods previously purchased by citizens of foreign countries when leaving the territory of Uzbekistan."

According to the decision, from 1 January 2023, a tax-free system will be introduced as an experiment to refund the amount of value-added tax paid to citizens of foreign countries when they purchase certain types of goods from entrepreneurs engaged in retail trade in the territory of Uzbekistan.

This system is applied to goods included in the list approved by decision in retail trade facilities in all regions of the republic.  For this, it is necessary to purchase goods subject to the Tax-Free system with a total value of at least 1 million soms.

To use Tax-Free, foreign citizens will need to register in the "Tax" mobile application and scan the online NKT fiscal receipts provided for their purchases.

It is noted that the calculation of the amount and its transfer to the bank card or bank account of a citizen of a foreign country is carried out by the system operator "Saliq-servis" State Unitary Enterprise.

Also, it will be possible to follow these processes online in the "Tax" mobile application.

When citizens of foreign countries leave the territory of Uzbekistan through the international airports of Tashkent, Samarkand, Bukhara, Fergana, and Urganch, they can apply for a refund of the value-added tax amount within 3 months from the time of purchasing the product by contacting the system operator.

The Tax-Free amount will be returned after the 25th day of the month following the month in which the purchase was made, after the confirmation of the departure of the citizen of a foreign country from the territory of the republic.