The government of Uzbekistan has introduced a new measure allowing foreign tourists to receive refunds of the value-added tax (VAT) in cash for purchases made within the country. This initiative, set to launch on April 1st at all international airports, is part of a broader strategy to boost tourism and retail trade, aiming to enhance the country's economic appeal to international visitors.

According to a presidential decree dated March 5th, as reported by the Norma.uz portal, when VAT is refunded, 85% of the tax amount will be returned to the foreign purchaser, while the remaining 15% will go to the Tax free system operator for service provision. Refunds to foreign citizens' bank cards must be processed no later than three working days from the date the goods are exported.

The minimum purchase amount to qualify for a refund has been set at 300,000 Uzbek soums, inclusive of VAT. Additionally, the limited list of goods eligible for the Tax free system has been abolished, except for food products, thereby expanding the range of items available for refunds and making the process more accessible to foreigners.

The Tax Committee is tasked with enabling identification via email in a special mobile application of the tax authorities to facilitate VAT accounting and refunds for foreign citizens. Furthermore, by April 1st of this year, Tax free service points are planned to be established at all international airports in the republic, with an experimental point also to be set up at the "Gishtko‘prik" border customs post on the border with Kazakhstan.

The decree also sets a goal to increase the volume of purchases made by foreign citizens in Uzbekistan tenfold by 2026–2027 and to ensure transparency in retail trade calculations, reflecting efforts to stimulate economic growth and attract foreign investment through improved fiscal policies.

Source: kun.uz