Tashkent, Uzbekistan (UzDaily.uz) — Repaying overdue receivables from an export transaction with an entrepreneur’s own funds does not qualify for the application of a zero VAT rate, Uzbekistan’s Tax Committee said.
Under Presidential Decree No. UP-176, “On measures to support business entities based on new approaches,” funds independently deposited by an entrepreneur into a bank account are not recognised as export revenue.
At the same time, the deposited funds reduce the outstanding debt recorded in the E-kontrakt system and allow the uncollected portion of a penalty to be proportionally cancelled.
However, such funds do not provide grounds for applying the zero VAT rate.
Therefore, repayment of debt using an entrepreneur’s own funds does not replace the receipt of export revenue and, by itself, does not give the right to apply the zero VAT rate.
