Uzbekistan will introduce VAT on e-services in 2020


The Uzbekistan tax authority has recently confirmed that local VAT will be applicable on the sale of e-services to consumers by non-resident businesses.

At present, non-resident businesses providing digital services in Uzbekistan do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Uzbekistan resident providers, the Uzbekistan tax authorities have now confirmed that VAT at 20% will be applied on these types of transactions from 1 January 2020.

This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.