Uzbekistan plans to recognize foreign legal entities selling goods through e-commerce platforms as value-added tax (VAT) payers. The relevant law was approved on May 18 at the fifteenth plenary session of the Senate of the Oliy Majlis.
The document introduces amendments and additions to the Tax Code and the Law 'On Electronic Commerce' as part of the law 'On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan Aimed at Improving the Sphere of Electronic Commerce'.
The main goal of the law is to prevent tax revenue losses in cross-border e-commerce, improve VAT administration, and create a level playing field for local and foreign sellers.
It is noted that over the past 8 years, the volume of e-commerce in Uzbekistan has grown 20-fold (to $1.3 billion), and the number of e-commerce platforms has exceeded 90.
According to the amendments to the Tax Code, foreign legal entities selling goods to the republic through e-commerce platforms are recognized as VAT payers.
It was reported that in 2024, goods worth $167.5 million were imported through international courier shipments, with 400,000 individuals placing a total of 3,294,200 orders. Of these, 1,994 people had more than 100 orders worth about $2 million.
At the plenary session, it was announced that Wildberries established LLC 'WB INT EXPORT' in Uzbekistan and paid taxes totaling 51.2 billion soums (including 42.8 billion soums in VAT) for 2022-2024.
Amendments and additions are also being made to the Law 'On Electronic Commerce' related to digitalization and improvement of the e-commerce system.
In particular, new concepts are introduced: 'electronic trading platform', 'order aggregator operator', 'order aggregator', 'digital streaming service', 'digital streaming service operator', and 'cross-border e-commerce'.
The operator of an electronic trading platform is assigned duties and responsibilities, including verifying data accuracy, ensuring personal data confidentiality, complying with information and cybersecurity requirements when making payments, and others.
Additionally, specific features of cross-border e-commerce and payment procedures are being introduced. E-commerce participants will only make settlements through separate bank accounts.
The law was approved by senators.
Source: www.gazeta.uz