Uzbekistan to Cut VAT Refund Time to Three Days for Low-Risk Taxpayers

Tashkent, Uzbekistan (UzDaily.com) — President of Uzbekistan Shavkat Mirziyoyev signed a decree on 19 May aimed at comprehensively improving the operations of tax authorities and introducing modern approaches to tax administration. The document, numbered UP-95, outlines a large-scale reform focused on digitalization, greater transparency, and strengthening taxpayer trust.

According to the decree, Uzbekistan plans to double tax revenues by 2030 while halving the share of high-risk taxpayers. Another key target is to increase the level of voluntary tax compliance to 98 percent and improve the country’s position in the World Bank’s Business Ready ranking in the area of tax administration to the top level.

As part of the reform, starting from 1 July, taxpayers classified as medium-risk will receive official notifications regarding detected violations. If issues are corrected within one month, tax audits will not be initiated.

From the same date, the requirement to submit additional documents in cases of discrepancies identified during pre-audit analysis will be abolished. Previously, such cases often required revised reporting or supporting documentation.

Starting from 1 January 2027, a mechanism for automatic refund of negative value-added tax balances will be introduced for low-risk taxpayers. Refunds will be processed within three days in cases related to zero-rated supplies or property purchases. A separate procedure will remain in place for certain categories of taxpayers.

From the beginning of 2027, loan agreements, financial assistance arrangements, and warehouse storage contracts will also be subject to mandatory registration with tax authorities.

The State Tax Committee will be required to develop tax risk assessment and monitoring systems by November 1, including “Risk Differentiation” and “Risk Review” tools, based on international standards and recommendations from the International Monetary Fund and the Organisation for Economic Co-operation and Development.

According to the decree, the new systems are designed for early detection and prevention of tax risks. Implementation will begin in January 2027 with large taxpayers in the chemical sector and will expand to all major enterprises nationwide from July 2027.