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Alert on the introduction of a simplified vat regime and additional support measures for small and medium-sized businesses

11 June 2026
On  26 May  2026, the President of the Republic of Uzbekistan signed a decree aimed at stimulating entrepreneurship, simplifying VAT administration and reducing the tax burden on small businesses (individual entrepreneurs, micro firms and businesses with revenue of up to UZS 10 billion аnd the respective number of employees).

In this alert, we have summarized what we consider to be the key developments related to the adoption of this decree.


Decree No. UP-100 of the President of the Republic of Uzbekistan “On Creation of More Favorable Economic and Administrative Conditions for the Growth of Small Businesses” dated 26 May 2026 has introduced the following changes:



INCREASED THRESHOLD FOR MANDATORY VAT REGISTRATION

  • Before 1 June 2026:

    > US$ 1 billion
    Total annual income
  • From 1 June 2026:

    > 12,000 BCV
    ~ US$ 4,9 billion
INTRODUCTION OF A SIMPLIFIED VAT AND CIT REGIME

During the period from 1 June 2026 to 1 January 2030, trade, catering and service enterprises (excluding large taxpayers and companies with a state share of 50% or more) are granted the right to voluntarily apply a simplified procedure for calculating and paying VAT and CIT.

The regime has the following specific features:
  • Reduced VAT rate of 6%
  • CIT rate of 0%
  • Filing of CIT reports canceled
  • Negative VAT difference written off
  • VAT not offset
  • Counterparties retaining the right to offset VAT
  • Current VAT incentives not applied
  • VAT refund mechanism canceled
To transition to the simplified regime, a taxpayer is required to submit a notification via its personal account on my3.soliq.uz. The regime will be applied from the first day of the month following the submission of the notification.
TEMPORARY MORATORIUM ON TAX AUDITS
  • Until 1 January 2028

    Small businesses are permitted to independently rectify tax violations identified by the tax authorities' automated program “Determination, analysis and assessment of tax risk" (Autocameral). At the same time, the following types of tax audits will not be conducted:


    • Tax audits (comprehensive review of business activities)  — where the amount of tax obligations is less than UZS 500 million
    • Field tax audit (conducted at the taxpayer’s premises) — where the amount of tax obligations is less than UZS 100 million
ADDITIONAL SUPPORT FOR SMALL AND MEDIUM-SIZED BUSINESSES

From 1 June 2026
  • Simplified registration (via a mobile app) for certain categories of employees in the catering business, including for payment of their wages
  • Refundof 40% of VAT for catering businesses regardless of the proportion of non-cash receipts
  • Rent for catering, trade and service enterprises is equal to the amount of land tax
From 1 January 2027
  • Unified fee introduced for the right to retail and sell alcohol, amounting to 10% of BCV
  • Deduction of twice the amount of expenses for engagement of audit firms and tax consultants by small businesses
  • Minimum rental rates canceled for tax purposes for real estate with an area of over 1,000 m² leased to business entities (except in Tashkent)
IMPROVEMENT OF VAT ADMINISTRATION
    • Legislators abolished (i) the procedure for temporary suspension of a VAT certificate and (ii) its use as a tool for applying enforcement measures
    • The automatic recognition of importers as VAT payers is abolished
    • From 1 January 2027, the negative VAT differences of low-risk companies will be refunded (reimbursed) without human involvement
    • The amount of a negative VAT difference (up to UZS 10 million) is reimbursed automatically without submission of an application and performance of a tax audit
HOW BEONE CAN HELP

We would be pleased to assist in the following areas:

  • Consulting on the applicability of new legislative provisions to your company
  • Assessing the impact of legislative changes on existing business structures, including taxation of both current and planned transactions
  • Reviewing and updating your company’s tax accounting policy to reflect legislative changes
  • Preparing inquiries to regulatory authorities regarding the application of new legislative provisions requiring clarification

We hope you find this information useful, and will be happy to give more detailed advice on the changes and discuss them if you have any questions.

CONTACTS


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Address: 23 T. Shevchenko Street, Mirabad District, Tashkent, 100060, Republic of Uzbekistan
www.beone-uz.com