Tashkent, Uzbekistan (UzDaily.com) —  On 7 November 2024, the Cabinet of Ministers approved the procedure for refunding part of the value-added tax (VAT) paid by catering establishments, tour operators, and hotels.

The benefits for the hospitality industry were announced by the President during an open dialogue with entrepreneurs in August. The Tax Committee has been tasked with launching an automated program to refund VAT to these businesses by November 20.

Hotels and tour operators will be able to reclaim 20% of the VAT paid since October 1. For restaurants, the VAT refund will be 20% if the share of cashless transactions in their turnover is below 60%, and 40% if it exceeds 60%.

To qualify for the benefit, income from these activities must account for at least 90% of the entrepreneur’s total revenue. Additionally, for tour operators, at least 80% of revenue must be in foreign currency.

The share of cashless transactions will be determined based on the ICP codes indicated in receipts and electronic invoices. Tax authorities will issue conclusions based on data from the automated program.

The conclusion will be sent to the Treasury within one business day of the entrepreneur’s application, after which the funds will be transferred to the main bank account.

This procedure will be in effect until 1 January 2028.

Moreover, catering businesses that have switched to VAT are allowed to purchase agricultural products from individuals for cash. In this case, the buyer must issue an electronic purchase act via the taxpayer’s personal account or the Soliq app, indicating the ICP codes, quantity, price of goods, and the date of purchase. Failure to issue the act will be considered a violation and may result in consequences such as concealment or underreporting of the tax base.