Government introduces VAT rebates to boost hospitality and tourism sectors

The government of Uzbekistan has approved a temporary regulation offering partial refunds on value-added tax (VAT) payments for businesses in the hospitality, tourism, and food service industries. Effective from October 1, 2024, the decision aims to support and stimulate these sectors by reimbursing a portion of the VAT paid to the state budget.

Under the new measure, tourism operators and hotels are eligible for a 20% refund on VAT paid to the budget. Starting January 1, 2025, businesses in the food service industry will also benefit, with the level of VAT refund linked to the proportion of non-cash transactions within their total monthly sales. Food service businesses with at least 60% of their monthly turnover from cashless transactions will receive a 40% refund on VAT paid. Those below this threshold will be eligible for a 20% refund.

To receive the VAT rebate, businesses must submit a tax report and apply for the refund within three months of filing. Automatic refunds will be granted only if the following conditions are fully met:

• The tax due for the reporting period is paid in full.
• The total turnover from eligible services (food service, tourism, or hotel services) accounts for at least 90% of the business’s total sales.
• Invoices and receipts reflect the specific goods or services provided, along with activity-specific codes in accordance with business type.

This temporary regulation is set to remain in effect until January 1, 2028.

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