What is a negative VAT difference and how is it refunded?
If input VAT on purchases exceeds VAT on sales, the budget ends up owing you. How a negative difference arises, the 10 million soum rule in PF-100, and the journal entries.
A VAT payer usually pays money to the budget. But in some months the calculation comes out the other way round: the budget has to pay you. This is called a negative VAT difference.
Key points
- In each tax period two amounts are compared: VAT charged on sales and VAT creditable on purchases
- If VAT on sales is larger, the difference is paid to the budget. If input VAT on purchases is larger, a negative difference arises
- A negative difference often arises in a month of large purchases: stocking up before the season, new equipment, or when goods have not yet been sold
- Under Decree PF-100, a negative VAT difference of up to 10 million soum is refunded automatically
- Larger amounts are refunded under the general procedure in the Tax Code: check the conditions and time limits in the current version
- The basis for crediting input VAT is invoices: check the requirements for how they must be issued in the current version of the Tax Code
- In the accounts, a negative difference shows up as a debit balance on account 6410: the budget owes you
Example: the "Charm Uslub" shop
Ahead of the winter season, a handbag shop bought a lot of goods in October, while sales were still low. Amounts exclude VAT, rate 12%.
| Transaction | Debit | Credit | Amount |
|---|---|---|---|
| Input VAT on purchases (goods 150 million soum) | 4410 | 6010 | 18 000 000 |
| VAT charged on sales (sales 80 million soum) | 4010 | 6410 | 9 600 000 |
| Input VAT credited | 6410 | 4410 | 18 000 000 |
| Negative difference refunded from the budget | 5110 | 6410 | 8 400 000 |
Calculation: 18 000 000 − 9 600 000 = 8 400 000 soum negative difference. This is less than 10 million soum, so it falls within the amounts refunded automatically. Once the money arrives, the debit balance on 6410 is closed.
Test yourself
5 questions on this topic: pick an option or reveal the answer.
Under Decree PF-100, up to what amount is a negative VAT difference refunded automatically, without an application?
"Ko'hna shahar savdo" LLC was reorganized by merger into another company. Under Article 79 of the Tax Code, to whom does the obligation to keep its accounting documents pass?
Goods were sold to a buyer and VAT was charged. Under NAS No. 21, what journal entry is made for the VAT amount?
"Kumush ip" LLC accrued a dividend of 40 000 000 soum to its participant Malika Rustamova, a resident of Uzbekistan, on her share in the charter capital (the LLC does not issue shares; Malika does not belong to a special category granted a tax benefit). Under the Tax Code, how much personal income tax is withheld from this dividend?
Jasur, a resident of Uzbekistan working as an employed designer, completed an order for a foreign company in 2026 and received income from a source outside Uzbekistan. Under the Tax Code, by what date must he file the annual total income declaration for this income?
Answered: 0 / 50 of 5 correct
All tests →See also
Sources
- Decree PF-100 (26 May 2026) · a negative VAT difference of up to 10 million soum is refunded automatically
- Tax Code of the Republic of Uzbekistan · general VAT rate 12%; general procedure and time limits for refunding a negative difference, check the current version
- NAS No. 21 "Chart of Accounts", paragraphs 190, 191 and 275 · 4410 / 6010 (input VAT on purchases), 6410 / 4410 (VAT offset), 4010 / 6410 (VAT on sales), 5110 / 6410 (refund of funds from the budget)
- Example and amounts · prepared by the author, hypothetical