Part of VAT will be refunded to jewelry entrepreneurs

In Uzbekistan, entrepreneurs engaged in the jewelry business will be eligible for a partial VAT refund. Under amendments introduced to Government Resolution No. 745 of November 7, 2024, a temporary regulation titled “On the Procedure for Refunding Part of the Value Added Tax Paid to the Budget to Business Entities Engaged in Jewelry Activities and for Determining the VAT Base” has been approved.

According to the regulation, beginning January 1, 2026, 80 percent of the tax paid will be refunded from the state budget to entrepreneurs engaged in the production of jewelry items and/or their retail sale.

After submitting a tax report, but no later than three months thereafter, an entrepreneur has the right to apply for a refund of part of the tax paid. Applications for a partial tax refund will be reviewed through an automated system.

Part of the tax will be refunded automatically if all of the following conditions are fully met:

• the tax calculated in accordance with the tax report submitted for the reporting period has been paid in full to the budget between the 1st and the 20th day of that reporting period;
• the total revenue earned during the tax period from the production and/or sale of self-manufactured jewelry items accounts for at least 80 percent of the income derived from the sale of goods and services;
• the invoices or receipts issued through cash register equipment include the nomenclature of the goods and services sold, as well as identification codes corresponding to the specific nature or type of activity carried out.

Manufacturers of jewelry items will determine the tax base based on the positive difference between the sale price of jewelry items and semi-finished products and the value of the precious metals and gemstones contained in them.