The main 2026 tax changes for businesses in Uzbekistan: from 1 January, individual entrepreneurs and self-employed persons with income up to UZS 1 billion pay a single 1% turnover tax, VAT and turnover tax returns are generated automatically by the tax authority, and electronic invoices are risk-rated. From 1 June 2026, the threshold for small businesses to move to VAT rose from UZS 1 billion to 12,000 BCU (about UZS 5 billion), and trade, catering and services gained a voluntary 6% VAT regime with zero profit tax.
Below is an overview of the 2026 tax changes in Uzbekistan: what changed, who is affected and what your accounting team should do. The main sources are Law No. ZRU-1108 of 25 December 2025, which amends the Tax Code from 1 January 2026, and Presidential Decree No. UP-100 of 26 May 2026 on support for small business.
Uzbekistan tax changes 2026 at a glance
| What changed | Who it affects | What to do |
|---|---|---|
| 1% turnover tax on income up to UZS 1 billion; fixed personal income tax for entrepreneurs abolished (from 1 January) | Individual entrepreneurs and self-employed persons | Confirm which rate you pay from 2026 and track your income |
| Payment organisations and legal entities became tax agents for the turnover tax of entrepreneurs and self-employed persons | Companies paying self-employed persons; entrepreneurs selling via platforms | Set up tax withholding on payments to self-employed persons |
| Returns generated automatically by the tax authority; 5 days to correct | Payers of VAT, turnover tax, personal income tax, social tax, corporate property and land tax | Reconcile generated returns with your books every month, not on the last day |
| Risk rating of electronic invoices | VAT payers and their suppliers | Vet counterparties; VAT on a high-risk invoice can be credited only after the tax is paid to the budget |
| Threshold for the general regime set at 12,000 BCU (from 1 June) | Small businesses on turnover tax | Re-forecast turnover and the timing of a possible switch |
| Voluntary 6% VAT with 0% profit tax (1 June 2026 to 1 January 2030) | Trade, catering, services (excluding large taxpayers and companies with 50%+ state ownership) | Compare the tax burden at 12% and 6% before filing the notice |
| Reduced rates for e-commerce abolished | E-commerce businesses | Recalculate taxes at base rates: 15% profit tax or 4% turnover tax |
Changes from 1 January 2026 (Law ZRU-1108)
1% turnover tax for entrepreneurs and self-employed persons
Individual entrepreneurs and self-employed persons whose sales income for the tax period does not exceed UZS 1 billion pay turnover tax at a single rate of 1%. At the same time, the fixed personal income tax for entrepreneurs was abolished, and the exemption for self-employed persons earning up to UZS 100 million was removed. Rate reductions under turnover tax incentives do not apply to 1% payers. If an entrepreneur's income exceeds UZS 1 billion, they move to VAT and profit tax; a voluntary switch is also possible. For how to compare regimes, see Turnover tax vs VAT.
Tax agents for turnover tax
When an entrepreneur or self-employed person earns income through payment organisations' digital platforms, the payment organisation withholds the tax. When a legal entity pays a self-employed person, it withholds the tax at source based on a notice from the tax authority. Both rules apply within income of UZS 1 billion. For companies this is a new duty: tax must be withheld correctly when paying self-employed contractors and reflected in the books.
Automatically generated returns
Returns for corporate property and land tax, personal income tax, social tax, VAT and turnover tax are generated electronically by the tax authority from the data it holds. If a return differs from your records, you must correct it within five days, and no later than the filing deadline. If no corrections are filed, you are deemed to agree with the return. In practice, automation does not replace bookkeeping — errors in source documents now reach your returns faster.
Risk rating of electronic invoices
From 1 January 2026, every electronic invoice receives a risk level. For high-risk invoices, the buyer can credit VAT only after the tax has been paid to the budget. This raises the cost of choosing the wrong supplier.
Other changes from 1 January
- A 0% VAT rate for listed agricultural produce grown by the seller (excluding cotton and grain) and an accelerated 3-day VAT refund for agricultural producers.
- Reduced rates for e-commerce abolished: base rates of 15% profit tax and 4% turnover tax apply from 2026.
- Turnover taxpayers that switch to profit tax for the first time from 1 January 2026 are exempt from that tax for one tax period (except dividends and interest). Check the conditions in advance.
- Liability for breaching VAT registration rules does not apply to first-time switchers from turnover tax if they register within one year of the obligation arising.
Changes from 1 June 2026 (Decree UP-100)
General-regime threshold of 12,000 BCU
The threshold above which a small business moves from turnover tax to VAT and profit tax rose from UZS 1 billion to 12,000 BCU (base calculation value). Because it is tied to the BCU, it changes when the BCU changes: at a BCU of UZS 412,000 it is about UZS 4.944 billion, and at UZS 440,000 (from 1 September 2026) it is UZS 5.28 billion. How the new threshold interacts with the 1% rule for entrepreneurs (income up to UZS 1 billion) is worth confirming for your situation.
Simplified 6% VAT
Companies whose main activity is catering, trade or services may voluntarily switch to 6% VAT on their entire turnover. Profit tax under this regime is 0% and no profit tax return is filed, but input VAT cannot be credited. Buyers keep their right to credit VAT. The regime runs until 1 January 2030; entry and exit take effect from the first day of the month after the month the notice is filed. See our VAT guide for Uzbekistan for details.
VAT refunds and inspections
- Negative VAT balances up to UZS 10 million are refunded automatically, with no application and no audit.
- Temporary suspension of VAT payer certificates and mandatory VAT registration for importers were abolished.
- Until 1 January 2028, if a business fixes violations flagged by the risk system on its own, no tax audit is ordered where the risk amount is up to UZS 500 million, and no on-site inspection up to UZS 100 million. Correcting before an audit also lowers the risk of penalties.
- From 1 January 2027, small businesses may deduct the cost of accounting firms and tax advisers at double the amount.
What businesses should do in 2026
- Choose your regime for the rest of the year: turnover tax, general regime or 6% VAT.
- Build a monthly turnover forecast against the 12,000 BCU threshold.
- Set up a monthly reconciliation of auto-generated returns with your books.
- Check key suppliers for invoice risk.
- If you pay self-employed persons, set up tax withholding.
If you need help with calculations or a regime switch, see our tax advisory service or book an accountant consultation.
Frequently asked questions
What is the turnover tax threshold in 2026?
From 1 June 2026, the threshold for moving to the general regime is 12,000 BCU — about UZS 5 billion depending on the current BCU. Before 1 June it was UZS 1 billion. For entrepreneurs and self-employed persons, the 1% rate in the Tax Code is tied to income up to UZS 1 billion.
Do I still have to prepare my VAT return myself?
The return is generated automatically by the tax authority, but you remain responsible for the data: discrepancies must be corrected within five days and no later than the filing deadline.
Who benefits from 6% VAT?
Usually trade, catering and service businesses with a small share of purchases subject to VAT. If you buy a lot with VAT, losing input VAT credit can make the regime unprofitable. Base the decision on a net profit calculation.
Did the VAT rate change in 2026?
The standard VAT rate remains 12%. What changed is the threshold and administration, plus a voluntary 6% regime for certain activities.
Information current as of October 2026. Tax rules change — check the current rules and confirm with a specialist before making decisions.