Understanding VAT Registration Triggers and Thresholds in Uzbekistan

What causes a VAT registration obligation in Uzbekistan, including thresholds, nexus types, and differences between resident and non-resident businesses

Updated 2 months ago

Registration Triggers Overview

Whether and when you need to register for VAT in Uzbekistan depends on two things: where your business is based and what type of sales you are making.

Physical Nexus

Physical presence in Uzbekistan creates a VAT obligation regardless of your sales volume in some cases. The following presence categories are relevant:

Creates a registration obligation (from any sale):

Permanent establishment (PE) — A foreign business with a branch, office, or fixed place of business in Uzbekistan must register for VAT and is treated the same as a resident taxpayer
Dependent agent or temporary sales presence — Employees or contractors who visit Uzbekistan to close deals, or a local agent who closes deals on your behalf, also create an obligation

Does not create a nexus on its own:

Attending trade shows or conferences without making taxable supplies
Using a third-party warehouse or fulfillment center for logistics
Maintaining servers or IT infrastructure in Uzbekistan

Economic Nexus: Resident Businesses

For businesses based in Uzbekistan, the VAT threshold is:

Detail	Value
Threshold	UZS 1,000,000,000 (approximately UZS 1 billion)
Measurement period	Calendar year (resets January 1)
What counts toward threshold	All taxable sales, including B2B, B2C, zero-rated, and exempt supplies

Once your annual turnover exceeds UZS 1 billion, you must transition to the standard VAT and Corporate Income Tax (CIT) regime starting the following calendar month. Below this threshold, resident businesses may use the simplified turnover tax regime instead.

Economic Nexus: Non-Resident Businesses

For non-resident businesses selling digital or electronic services to Uzbek customers, the rules are different:

Detail	Value
Threshold	None — UZS 0
What triggers registration	Your first B2C sale to an Uzbek individual
Measurement period	N/A
B2B sales	No registration needed; Uzbek buyer handles VAT via reverse charge

There is no revenue threshold for non-resident e-service providers. Registration is required from the date you make your first B2C digital service sale to a customer in Uzbekistan.

Marketplace and Platform Rules

Uzbekistan does not have specific marketplace facilitator legislation, but platforms that act as payment intermediaries for digital services are also required to register.

Key points:

If a marketplace collects payment on your behalf, it must register for VAT and remit it
If the marketplace handles VAT for those sales, you are relieved of the obligation for those specific transactions
Marketplace-facilitated sales do not count toward the underlying seller's own registration threshold

Collected Tax Nexus

Like the US, Kintsugi also tracks collected tax nexus for Uzbekistan. If your business collected tax in Uzbekistan without having met physical or economic nexus, you still have a nexus obligation.

When Does Liability Begin?

Scenario	Liability starts
Resident business exceeds UZS 1 billion	From the month following the month of threshold breach
Non-resident making B2C digital sales	From the very first B2C transaction
Foreign entity with permanent establishment	From any first taxable sale

Need Help?

For further concerns, we're always here to help. If you can't find the answer you're looking for, just reach out to us using the chat in the bottom right corner of your screen.