Starting June 1, 2026, hotels, pubs and restaurants in Uzbekistan will be permitted to accept cash payments for sales of alcohol and tobacco products, according to a presidential decree signed on May 26.
The Creating More Favorable Economic and Administrative Conditions for the Growth of Small Business Entities Decree establishes that digital tracking codes on purchased alcohol products will be officially recognized as sold for final consumption upon transaction at these establishments.
For pubs and restaurants providing catering services, the decree introduces the following measures:
- Simplified Hiring: Certain categories of employees can now be registered and paid on the same day for a specific duration through a simplified process via the labor authorities' mobile application.
- VAT Rebates: A partial refund of paid Value Added Tax (VAT) will be issued at a flat rate of 40% of the total tax paid, regardless of the share of cashless transactions in the business's overall revenue.
Furthermore, pubs, restaurants, retail, and hospitality businesses, the lease rate for utilizing areas adjacent to their buildings, structures, and land plots will be fixed. This rate will match the standard single-rate land tax as determined under the Tax Code.
Starting January 1, 2027, the fees for the right to retail alcohol and the right for pubs and restaurants to sell alcohol will be merged. The new consolidated rate will be set at 10% of the base calculating amount.
When individuals or entities lease properties with a total area exceeding 1,000 square meters to business owners, minimum rental rates for taxation purposes will no longer apply, except within the city of Tashkent. Additionally, small businesses will be permitted to deduct the costs of hiring accounting firms and tax consultants at double the actual expense amount.
Previously, on April 1, Uzbekistan banned cash payments for certain goods and services, including alcohol and tobacco. However, during an open dialogue with hospitality entrepreneurs on April 21, officials announced that the requirement for cashless-only alcohol payments in cafes, restaurants, and hotels would be reconsidered.
Earlier on May 26, President Shavkat Mirziyoyev reviewed proposals aimed at creating more favorable economic and administrative conditions for small business growth. These proposals included permitting cash sales for alcohol and tobacco, removing cashless revenue quotas for VAT refunds, and streamlining employee registration. These measures have now been approved, and starting June 1, 2026, cafes and restaurants will also be allowed to formally hire staff under a simplified system for short-term periods, such as single-day or 7-day shifts.
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