Guide to VAT Taxability and Rates in Tajikistan
Updated 2 months ago
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This article explains how VAT applies to SaaS and digital service transactions in Tajikistan, including the applicable rates, how B2B and B2C transactions are treated differently, and how the reverse charge mechanism works.
Current VAT Rate
The current standard VAT rate in Tajikistan is 14%, effective from January 2024. This rate is scheduled to decrease further to 13% on January 1, 2027, under Tajikistan's ongoing tax reform roadmap.
VAT Rate History
Period | Standard Rate |
|---|---|
Pre-2022 | 18% |
2022–2023 | 15% |
2024–2026 | 14% (current) |
January 1, 2027+ | 13% (scheduled) |
How VAT Applies to SaaS Transactions
Transaction Type | VAT Rate | Who Charges the Tax |
|---|---|---|
B2B SaaS (resident seller, domestic) | 14% | Seller charges buyer |
B2C SaaS (resident seller, domestic) | 14% | Seller charges buyer |
B2B SaaS (non-resident seller, cross-border) | 0% on invoice | Buyer self-assesses via reverse charge |
B2C SaaS (non-resident seller, cross-border) | 14% | Non-resident seller must charge and remit |
Exports (seller in Tajikistan, buyer abroad) | 0% | Zero-rated |
B2B Transactions: Reverse Charge Applies
For cross-border B2B SaaS sales where the seller is a non-resident and the buyer is a VAT-registered Tajik business, the reverse charge mechanism applies. This means:
The non-resident seller does not charge VAT on the invoice.
The Tajik business buyer self-assesses the 14% VAT and reports it in their own VAT return.
The buyer may claim an input tax credit for the same amount, provided the SaaS is used for taxable business activities.
The seller's invoice should include a notation such as: "Reverse charge: VAT to be accounted for by the recipient."
How Kintsugi handles this: When a valid Tajik VAT ID (TIN) is provided, Kintsugi treats the sale as B2B and does not apply output VAT. This is the correct treatment.
B2C Transactions: Seller Must Charge VAT
For cross-border B2C SaaS sales where the seller is a non-resident and the buyer is an individual (no VAT ID), the non-resident seller is required to register and charge 14% VAT on every invoice. There is no reverse charge option for consumer sales.
What Counts as an Electronic Service?
Under Article 279 of the Tax Code of the Republic of Tajikistan, electronic services include, among other things:
Rights to use software, computer games, and databases delivered via the internet.
Online advertising services.
Hosting, domain name provisioning, and website administration services.
Cloud computing and data storage services.
Access to search engines and online content.
Streaming of audiovisual, educational, and graphical content.
Not included as electronic services:
Goods ordered online but delivered physically (not via the internet).
Software delivered on a tangible medium.
Consulting services provided by email.
Services that provide general internet access.
Marketplace / Platform Rules
Tajikistan does not have formal marketplace facilitator legislation as of the current date. However, if a digital marketplace platform controls key elements of a transaction (such as payment authorization and delivery terms) for sales to individual Tajik residents, the platform may be treated as the deemed supplier and become responsible for VAT collection and remittance.
If the platform and the original seller agree that the seller will pay VAT, the platform is not treated as the deemed supplier.
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