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Uzbekistan VAT Exemptions and Reverse Charge — What You Need to Know

How exemptions work (or don't) in Uzbekistan, and a plain-language explanation of reverse charge for SaaS businesses
Updated 2 months ago

Are There Exemptions for B2B or B2C SaaS in Uzbekistan?

No. There are no entity-level exemptions in Uzbekistan for businesses supporting B2B SaaS and B2C SaaS.

However, the difference between B2B and B2C is important — not because one is exempt, but because the mechanism for collecting and remitting VAT is different.

Transaction type

Who accounts for the VAT?

B2C (non-resident seller to Uzbek consumer)

The non-resident seller registers and charges 12% VAT

B2B (non-resident seller to Uzbek business)

The Uzbek business buyer self-assesses VAT via reverse charge

This is not an exemption. It is a tax collection mechanism, not a relief from tax.

What Is Reverse Charge?

Reverse charge is a VAT mechanism where the buyer — not the seller — accounts for the tax.

Under standard VAT rules:

  • The supplier charges tax on the invoice, collects it, and remits it to the government

  • The buyer may then claim it back as input tax

Under reverse charge:

  • The supplier does not charge VAT on the invoice

  • The buyer self-assesses the VAT in their own tax return and pays it directly

The tax liability has shifted from supplier to recipient. This is the default treatment for cross-border B2B digital services in Uzbekistan.

What This Means for Your Business

If you are a non-resident seller making B2B sales:

  • Do not charge Uzbekistan VAT on your invoices

  • Include a notation: "Reverse charge: VAT to be accounted for by the buyer"

  • You do not need to register in Uzbekistan for B2B-only sales

  • The Uzbek business customer will withhold and remit 12% VAT

If you are a non-resident seller making B2C sales:

  • Register for VAT in Uzbekistan from your first sale

  • Charge 12% VAT on each transaction

  • Report and remit quarterly via the tax.uz portal

If you are an Uzbek business buying SaaS from a foreign supplier:

  • You must self-assess 12% VAT on those purchases

  • You may claim the VAT back as an input tax credit if the SaaS is used for VAT-taxable business activities

  • Input VAT cannot be claimed if the service is used for exempt activities or personal use

Credit Notes and Adjustments

If you issue a credit note to a customer in Uzbekistan (for example, due to a refund or cancellation), the VAT adjustment is reported in the period the credit note is issued, not the original sale period. This applies to both B2B and B2C transactions.

Need Help?

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