Major 2-Billion-Soum VAT Fraud Uncovered in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) — A large-scale scheme involving the illegal refund of value-added tax (VAT) amounting to 2 billion soums has been exposed in Chirchiq. The operation was conducted jointly by the State Security Service departments of Navoi, Tashkent, and Andijan regions, alongside the Department for Combating Economic Crimes.

According to the investigation, an employee of a Tashkent-based limited liability company (LLC) with a prior criminal record gained the trust of a private enterprise head in the Navoi region. Between 2025 and 2026, he proposed a scheme to reclaim 2 billion soums from the state budget using forged documentation. The fee for this "service" was set at 340 million soums.

An accomplice—an individual entrepreneur from Andijan born in 1971—executed the fictitious operations to credit the VAT to the enterprise’s settlement account. He drafted electronic contracts between a known LLC and the Navoi private enterprise, allegedly confirming the completion of construction and installation work worth 18.67 billion soums, as well as the provision of transport services and construction materials. Based on these fraudulent documents, ten forged electronic invoices were issued, facilitating the 2-billion-soum VAT refund.

The funds were subsequently collected by accomplices—previously convicted individuals from the Kibray district (born in 1973) and Andijan (born in 1996). The investigation established that the 340-million-soum "fee" was intended to be distributed among the participants of the scheme.

Criminal proceedings have been initiated against the four individuals under the relevant articles of the Criminal Code. Investigative actions are ongoing, including an inquiry into the potential involvement of associates within the tax authorities in this illegal activity.