Uzbekistan deprives number of imported goods of VAT benefits

Business Materials 12 July 2019 12:38 (UTC +04:00)

Baku, Azerbaijan, July 12

By Fakhri Vakilov - Trend:

As follows from the decree of the President of Uzbekistan on the further streamlining of tax and customs benefits, importers of a number of goods to Uzbekistan lose their value-added tax (VAT) benefits, Trend reports via Uzbek media.

The decree determined, in particular, that from October 1, 2019, business entities that import goods are recognized as payers of value added tax, regardless of the amount of revenue from the sale of goods (work, services).

After three months, the value-added tax exemption will be canceled in case of importing: asbestos, coal, timber, wood and products from it, hydrocarbons, soybeans, sunflower seeds and sesame, oilseeds and raw sugar, agricultural machinery , motor vehicles, components, materials and technological equipment used in the manufacture of motor vehicles, read the message.

As noted in the decree the measures taken are intended to eliminate the existing disproportions in the current procedure for calculating and paying the value added tax, providing for the provision of a significant amount of benefits and preferences to business entities in certain sectors of the economy.

The measures will allow creating a full value chain for value added tax to ensure equal conditions for all economic entities and increase the competitiveness of the economy.

VAT is the most significant tax for the budget. In Uzbekistan, it is 20 percent.


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