Uzbekistan has issued Presidential Decree No. UP-100 of 26 May 2026, introducing a comprehensive tax reform package for small businesses that includes a simplified 6% VAT option, a dynamic turnover threshold, and the abolishment of mandatory VAT registration for importers, with key measures taking effect between June 2026 and January 2030.
Uzbekistan has issued Presidential Decree No. UP-100 of 26 May 2026, which outlines a comprehensive reform package designed to modernise and simplify the tax environment for small businesses in Uzbekistan.
Scheduled for implementation between 2026 and 2030, the legislation introduces a simplified value-added tax option set at a fixed 6% rate for eligible service and trade sectors.
Other key provisions are:
Dynamic turnover threshold for general tax regime
Starting 1 June 2026, the maximum income level before a business is forced to transition to the generally established taxation system (including standard VAT) is set to 12,000 times the base calculated amount. Previously set at a fixed annual turnover of UZS 1 billion, the threshold is currently approximately UZS 4.94 billion and will increase to about UZS 5.28 billion from 1 September 2026 following an increase in the basic calculation amount.
Abolishment of mandatory VAT for importers
The decree actively removes a significant hurdle for cross-border trade by cancelling the mandatory recognition of importers as VAT payers. Previously, bringing goods across the customs border automatically triggered this status. Now, legal entities, individual entrepreneurs, and self-employed persons importing goods are free from this automatic VAT registration requirement.
The simplified VAT procedure (June 2026 – January 2030)
To stimulate growth in specific sectors, the decree introduces a highly streamlined, voluntary tax corridor available from 1 June 2026 to 1 January 2030. It is available to businesses whose primary activities are public catering, trade, or services. It specifically excludes large taxpayers and enterprises where the state holds a 50% or greater share.
- The 6% flat rate: The VAT rate is aggressively reduced to 6% on all turnover from the sale of goods and services.
- Income tax and reporting exemption: To drastically reduce administrative burdens, the income tax rate is dropped to 0%, and the obligation to even submit tax reports is completely abolished.
- No input deductions: The trade-off for this simplicity is that these businesses cannot offset the VAT paid on their own purchases (input tax), and they cannot utilise current procedures for VAT refunds; any negative VAT difference is simply written off.
