Uzbekistan Sets Rules for Offsetting Excess VAT Against Import Customs Payments

Uzbekistan has set a procedure for offsetting value added tax (VAT) paid on imported goods against VAT paid on their sale, the Ministry of Justice reported. The regulatory document was registered on October 31 under No. 3966.

Under the new rules, taxpayers can use excess VAT balances from sales of goods and services to cover VAT payable at customs on imported goods. To do so, a taxpayer declares the VAT offset through a customs declaration. The Customs Committee then asks the Tax Committee to confirm the overpayment.

The Tax Committee provides information on the amount that can be offset, and an offset act is generated automatically. The Customs Committee then reflects the sum in the taxpayer's personal account with customs and processes the customs declaration. According to the ministry, the procedure aims to make importing easier for entrepreneurs, with tax and customs processes carried out automatically. Earlier, it was reported that more than 16 trillion soums in VAT had been refunded to enterprises in nine months.