On November 8, the Cabinet of Ministers of Uzbekistan issued a resolution according to which, from January 1, 2023, the Tax Free system - the VAT refund will be introduced an experiment to foreign citizens for purchased goods when leaving Uzbekistan, the State Tax Committee said.
What goods are subject to Tax Free
For goods included in the list approved by the decree, which are sold at retail facilities in all provinces of Uzbekistan.
These are fruits and nuts, perfumes and cosmetics, leather and fur products, wooden products, carpets, wicker baskets, silk products, clothes and accessories for it, shoes, ceramic products, knives, scissors, kitchen utensils, household appliances, telephones that record devices, watches, toys and sporting goods (a detailed list is in the resolution).
Purchase amount threshold
The total amount of the purchase of goods that fall under the Tax Free system must be at least 1 million soums, or US$ 90.
Stores selling goods under the Tax Free system will be marked with special signs with text in Uzbek and English.
The product must not be used in Uzbekistan and must be in hand luggage or accompanied luggage of foreign citizens.
How a foreign citizen can use the Tax Free
To do this, one needs to register in the Soliq mobile app and scan online cash register receipts in it with a fiscal sign for the purchases made.
The calculation of the Tax Free amount and its crediting to a bank card or bank account of a foreign citizen is carried out by the Soliq-Service State Unitary Enterprise - the operator of this system (it will receive 10% of the returned amount). All processes can be monitored online through the mobile app.
Foreign citizens will be able to get the VAT refund within three months from the date of purchase when leaving the territory of Uzbekistan through the international airports of Tashkent, Samarkand, Bukhara, Fergana and Urgench by contacting the system operator at the airport.
When will the tax paid be refunded?
The refund will be returned after the 25th day of the month following the month in which the purchase was made, after the departure of a foreign citizen is confirmed.
Based on the results of the experiment, from 2024, VAT refund points will be gradually introduced at all international airports and railway stations, as well as border checkpoints in Uzbekistan.
In this case, the system operator will either be selected under public-private partnership terms, or an international company will be involved for this.
The plans to introduce a VAT refund system were discussed back in 2017. In July 2019, a presidential decree was issued that provided for the introduction of this system.
