Uzbekistan Introduces VAT Refund Procedure for Jewelers

Tashkent, Uzbekistan (UzDaily.com) — The Cabinet of Ministers of Uzbekistan has approved amendments and additions to several government resolutions, while simultaneously nullifying a portion of previously effective norms.

Among the innovations is the implementation of a temporary mechanism for the refund of part of the value-added tax (VAT) for entrepreneurs engaged in the production and retail sale of jewelry. The relevant provisions are established in the updated version of Government Resolution No. 745 dated 7 November 2024.

The document approves a regulation governing the procedure for returning a portion of the VAT paid to the budget by business entities in the jewelry industry, as well as the mechanism for determining the tax base for this specific levy. This procedure is set to remain in effect until 1 January 2028.

According to the document, starting from 1 January 2026, entrepreneurs engaged in the production and/or retail sale of jewelry products will be eligible for a refund of 80% of the VAT paid from the national budget. The right to a refund arises after tax reports are filed, and applications for compensation must be submitted no later than three months from the date of tax payment. Applications will be processed through an automated system.

The partial VAT refund is executed automatically provided several conditions are met. Specifically, the tax must be paid in full to the budget between the 1st and the 20th of the reporting month. Furthermore, income from the production and/or sale of jewelry must account for at least 80% of the total revenue. Correct reflection of the product nomenclature and identification codes in invoices or cash register receipts is also required.

For jewelry manufacturers, a special procedure for determining the tax base has been established. The base is calculated based on the positive difference between the selling price of the products and the cost of the precious metals and stones they contain.