The procedure for paying value added tax is changing
Tashkent, Uzbekistan (UzDaily.com) – President of Uzbekistan Shavkat Mirziyoyev signed a decree on measures to further streamline the provision of tax and customs benefits.
According to the Decree, from 1 August 2019:
- agricultural producers who are payers of the single land tax have the right to switch to payment of value added tax on a voluntary basis;
- individual entrepreneurs who provide intermediary services to operators and (or) telecommunications providers whose revenues from the sale of services exceeded 100 million soums in a calendar year, but not more than one billion soums, are transferred to the payment of a single tax payment at a rate of 25 percent of the amount of remuneration.
Also, from 1 October 2019:
legal entities selling to the final consumers of gasoline, diesel fuel and gas through gas stations are recognized as value added tax payers regardless of the amount of revenue from the sale of these goods;
- business entities - importers of goods are recognized as payers of value added tax, regardless of the amount of revenue from the sale of goods (works, services).
- Value-added tax exemptions, including upon import, are revoked in respect of:
- asbestos, coal, timber, wood and wood products, hydrocarbon raw materials;
- soybeans, sunflower seeds and sesame seeds, oilseeds and raw sugar;
- agricultural machinery, motor vehicles, components, materials and technological equipment used in the production of motor vehicles;
- Besides, privileges for exemption from corporate income tax at the source of payment received as a percentage of funds placed in commercial banks are canceled.
VAT exemptions on agricultural products of own production and food products produced in the Republic are canceled.
Single land tax payers who have a turnover (revenue) of more than 1 billion soums for the period from January to September 2019 or irrigated agricultural land covering more than 50 hectares are value added tax payers and are required to register as value added tax payers .
At the same time, starting 1 October 2019, the payers of the single land tax, reaching the established turnover threshold (revenue), will go on to pay value added tax from the 1st of the month following the month in which the established threshold is reached.
Producers of raw cotton are switching to paying value-added tax on the 2019 harvest.
Legal entities that apply value-added tax benefits in the part of food products produced in the Republic of Uzbekistan are entitled to pay value-added tax on the basis of notification of refusal to apply benefits from the 1st day of the month following the month in which the notification was submitted.
The local government bodies are authorized to provide a deferment in tax on property of legal entities, land tax on legal entities and a single land tax for a period of up to 24 months while simultaneously canceling their right to provide benefits on these taxes.
From 1 August 2019, the amount of wages and other personal incomes that are used to pay insurance premiums paid to insurance organizations for long-term life insurance are not subject to taxation.
Financial sanctions for business entities for overdue receivables for import contracts for the supply of equipment and (or) components do not apply if the terms of such contracts set the delivery time of equipment and (or) components for them for more than 180 days due to their technical characteristics and features.