#e_services #vatTax administration of foreign entities providing e-services in UzbekistanAccording to
Article 282 of the Tax Code of the Republic of Uzbekistan, the services rendered via provision of access to the global information network “Internet” in an automated way with the usage of information technologies are determined as electronic services (or e-services).
These services include various service offerings, such as:
- provision of rights for use of software (including online games);
- provision via the Internet of rights to use electronic books (publications);
- provision of advertising services on the Internet;
- provision of services for posting offers for the purchase (sale) of goods (services) and property rights on the Internet.
👉🏻 Full list of e-services according to the Tax CodeServices in electronic form do not include:
- sale of goods (services), if, when ordering via the Internet, the delivery of goods (provision of services) is actually carried out without using the Internet;
- implementation (transfer of rights to use) of programs for electronic computers (including computer games) and databases on tangible media;
- provision of consulting services by e-mail;
- provision of services for providing access to the Internet.
According to
Article 278 of the Tax Code, foreign legal entities providing e-services, place of supply of which is the Republic of Uzbekistan, shall be recognized as taxpayers with respect to such services rendered to individuals.
The procedure for registration (deregistration) of such foreign legal entity with the tax authority shall be carried out by submitting of an application for registration (deregistration) and certain other documents according to the list approved by the Tax Committee. Such application should be submitted to the tax authority electronically via a dedicated website
within 30 calendar days from the date the non-resident started providing e-services.
👉🏻 The official website for registration of foreign entities – www.tax.uzA total of
62 foreign legal entities providing e-services were registered as VAT payers as at December 1, 2024.
In CIS countries foreign legal entities providing e-services are also registered as VAT payers, totaling to
90 in Kazakhstan, 66 in Kyrgyzstan, 2,669 in Russia,48 in Armenia, and 121 in Belarus.
According to
the Article 280 of the Tax Code turnover derived from the sales of the e-services to individuals is considered as taxable object for VAT purposes. The tax period is a quarter. The tax base for each quarter should be determined as value of e-services sold to Uzbek individuals calculated based on the actual sale price.
VAT returns should be submitted on a
quarterly basis in electronic form through a personal account of the taxpayer on the official website of the tax authorities
no later than 20th of the month following the reporting quarter.
The
VAT rate for e-services is 12%, and payment of tax by foreign legal entities shall be made not later than the deadline for submission of tax reports.
In comparison, the VAT rates for such services comprises:
10% in South Korea, 16.67% in Russia, 7% in Thailand, 10% in Australia, 20% in Belarus, and 10% in Japan.In the first 10 months of this year, foreign legal entities
paid VAT in the amount of 106.0 billion soums, resulting in a
1.4% increase in the tax revenue compared to the previous year.
The majority of taxes paid by foreign entities providing e-services come from
Meta Platforms, Google, and Apple, which account for
85% of the total.
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