Tashkent, Uzbekistan (UzDaily.com) - The Commissioner for the Protection of the Rights and Legal Interests of Entrepreneurs (Business Ombudsman) has begun to study the legality of VAT notifications sent to entrepreneurs. This was reported by the press service of the business ombudsman.

The State Tax Committee announced a list of 396 business entities that committed suspicious transactions in order to illegally reduce VAT.

The entrepreneurs who entered into a contractual relationship with the aforementioned entrepreneurs have been notified of the change in the VAT amount and the provision of updated reports.

“For organizations that had financial transactions with unscrupulous taxpayers who carry out dubious transactions (engaged in“ cash-in ”), on the basis of Article 266 of the Tax Code, the VAT offset amount was adjusted or canceled, since this offset was carried out on the basis of sham transactions. In this case, each case will be considered individually,” the State Tax Committee notes.

"In the event that the taxpayer submits documents confirming the legality and reality of the transaction (operation), as well as evidence that they showed due diligence in choosing a counterparty and the supplier's ability to fulfill the obligations under the transaction, the amount of VAT offset will be immediately restored," the committee’s message reads.

“Considering that these actions of the tax authorities cause strong protests from entrepreneurs, the Office of the Business Ombudsman is studying the legality of these actions with the participation of officials of the State Tax Committee,” the press service of the Business Ombudsman said.