Results for “VAT”

0100 Fixed assets

VAT

A tax levied on the value added when goods and services are sold. The seller adds it to the price, collects it and pays it to the budget. Ultimately, the consumer bears this tax.

Invoice (tax invoice)

A document that a seller issues to a buyer for goods or services. It shows the amount, VAT and the details of both parties. Nowadays it is mostly issued electronically.

Audit evidence

The information an auditor gathers to reach an opinion: documents, confirmations, recalculations, and the results of observation and inquiry.

VAT payer

A taxpayer registered with the tax authority who charges VAT, pays it to the budget and has the right to offset VAT paid on purchases.

Indirect tax

A tax that is added to the price of goods or services and is ultimately paid by the consumer. The seller collects it and transfers it to the budget. Examples: VAT and excise tax.

Input VAT

VAT that a company pays to a supplier as part of the price when it buys goods, work or services. A VAT payer under the general regime, when the conditions set by law are met, deducts it from the VAT on sales and pays only the difference to the budget.

Output VAT

VAT that a company calculates on top of the price when it sells its goods, work or services, and collects from the buyer. The general rate is 12%. The amount payable to the budget: output VAT minus deductible input VAT.

Negative VAT difference

The difference that arises when the input VAT deductible for a period exceeds the output VAT on sales: no VAT is payable to the budget for that period, and the excess input VAT remains in the taxpayer's favour. Under Decree No. PF-100, a negative difference of up to 10 mln soum is refunded automatically.

Simplified VAT regime

A voluntary regime introduced by Decree No. PF-100: companies in trade, catering and services may pay VAT at a rate of 6% from 1 June 2026 to 1 January 2030. In this case corporate profit tax is 0%, but input VAT on purchased goods and services is not deducted.

Outlier

An observation that differs sharply from the other values in a data set. It may be a measurement or data-entry error or a genuine rare event, so instead of deleting it without thinking, its cause should be established.

Conservation (mothballing) of fixed assets

Placing a fixed asset into storage in the established manner so that it is temporarily not used. A mothballed item remains the company's property, but it is transferred to a separate account 0199 "Fixed assets in conservation (mothballed)" (NAS No. 21, paragraph 22). No depreciation is charged on fixed assets placed in conservation (NAS No. 21, paragraph 26).

Grant

Money or material resources given free of charge by government, non-governmental, foreign and international organizations and funds for social purposes, economic development, and scientific, technical and innovation programmes. It is used only for its designated purpose. When notice of the grant is received: Dt 4890 – Ct 8810.

Devaluation

A fall in the value of the national currency against foreign currencies. In the narrow sense it means the state lowering the official rate under a fixed exchange rate regime; in the broad sense, any depreciation of the national currency. As a result, imports become more expensive, while exports become cheaper for foreign buyers.

Histogram

A chart showing the distribution of quantitative data by intervals: a bar is drawn for each interval; when the intervals are of equal width, its height corresponds to the number of observations (frequency) in that interval, and when widths differ, the frequency is shown by the bar's area. Unlike an ordinary bar chart, the bars touch each other, because the intervals divide a continuous scale.

Customs duty

A customs payment made when goods are imported across or exported across the customs border; under the Customs Code, customs payments include, along with duty, VAT, excise tax and customs fees. Duty rates are set by the President of the Republic of Uzbekistan. The rate may be ad valorem (a percentage of the customs value), specific (a fixed amount per unit of goods) or combined. In accounting for imported inventories and fixed assets, customs duties and fees paid are added to their cost (initial cost); only if the method of accounting for goods acquired for resale at purchase price has been chosen are such costs charged to period expenses (NAS No. 4, paragraph 30). The Customs Code lists the following types of customs duties:

Proportional tax

A tax under which the same rate applies regardless of the size of the tax base. If the base doubles, the amount of tax also exactly doubles, but its share of the base does not change. It is easy to calculate and monitor; however, because low- and high-income payers pay the same share of the base, it does not reduce income inequality. An example of a single rate is the general VAT rate: 12% regardless of the amount of the sale.

Hedging

Entering into a transaction in the direction opposite to the main position in order to reduce the loss from changes in a price, exchange rate or interest rate. The aim is not to make a profit but to make the outcome predictable: if the main transaction makes a loss, the hedging transaction makes a profit that offsets it, and vice versa. This has a price: if the price moves in a favourable direction, the hedge also takes away the extra gain. Derivative financial instruments are often used for this; the forward contract in the example below is one of them.

Processing within the customs territory

A customs procedure under which foreign goods are brought into Uzbekistan to be processed and then taken out as finished products (processed products). On entry they are conditionally exempted from duties and taxes. The procedure is applied on the basis of a processing permit issued by the customs authority. The processing operations are listed in Article 71 (list below). Work not included in them: ensuring the preservation of the goods, preparing them for sale and transport; breeding, rearing, cloning, fattening and catching animals and obtaining their produce; growing and harvesting plants; extracting minerals; copying and reproducing information, audio and video recordings; using foreign goods (equipment, machine tools, devices) as auxiliary means in a technological process. Under Article 72 there are five conditions: identification of the imported goods in the processed products; setting the yield rate of processed products; the goods not falling under prohibitions and restrictions relating to this procedure; ensuring payment of customs payments for the imported goods (except in cases provided for by legislation); the processing operations complying with Article 71. Yield rate (Article 11): the quantity of processed product obtained from one unit of the goods used in processing (in absolute terms or as a percentage).

Tax secrecy

Information about a taxpayer obtained by the competent authorities whose disclosure is prohibited. Article 29 of the Tax Code separately lists information that does not constitute a tax secret: information that is publicly available (including information made public with the owner's consent); the taxpayer identification number; violations of tax legislation and liability measures; the tax regimes applied and registration as a VAT payer; the amounts of taxes paid and of tax arrears; participants of a legal entity; the average number of employees on the payroll; the amounts of income and expenses according to the financial statements. A tax secret may not be disclosed by state bodies, their officials, or the specialists and experts involved (except in cases provided for by law); providing information to foreign tax authorities under an international treaty is not considered disclosure.

Insurable interest

The policyholder's real financial interest in the preservation of the property or person being insured: if the property is lost or damaged, the policyholder personally suffers a financial loss. This principle keeps insurance from turning into a gamble: one cannot take out insurance "betting" on someone else's house burning down. The interest may arise not only from ownership but also from a lease, pledge or debt relationship.

Which documents are needed for an export (code 10): how does one set of documents serve customs, the tax authority and accounting?

Export documents are needed in four places: by customs, which places the goods under the procedure, by the post at the border, by the tax authority to confirm 0% VAT and by accounting to record revenue. Which document is required by which article, which one serves several purposes at once and which date determines what: the example of an export of granite slabs by rail.

Export through an intermediary (commission agent): on whose balance sheet are the goods, when is revenue recorded and which documents are needed for 0% VAT?

A small manufacturer did not enter the foreign market itself and entrusted its export to an experienced trading company. On whose balance sheet does the atlas silk handed to the intermediary remain, at which rate is revenue recorded, where does the agency fee go, and when is VAT credited if the money arrives in the intermediary's account: the principal's and the commission agent's accounting in one example.

0% VAT on export: in which month is the VAT paid on raw materials credited, how is the negative difference refunded and what is recorded in the books?

No VAT is charged on export sales, but the VAT paid on raw materials is not lost. It is credited step by step as the buyer's money arrives, and in the end a negative difference appears. The difference between the zero rate and exemption, a two-month calculation, the refund procedure and journal entries using the example of a juice company.

Statistical observation: where do the numbers come from, and do we always have to count everyone?

The second lesson of the course: how statistical data are collected, the four questions in planning an observation, the types of observation (by coverage, by timing and by the method of obtaining data) shown on one bakery, and the errors made in observation.

From law to standard: how have Uzbekistan's accounting rules taken shape from 1996 to today?

An accountant's daily work rests on a two-tier set of rules: at the top, the Law "On Accounting", and beneath it, the national standards (NAS, BHMS). The Law was adopted in 1996 and issued in a new version in 2016, while the standards were renewed in several waves from 1998 to 2024. A table of dates, official documents and the rules by which to read an archived report.

The seven elements of a tax: which questions do you need to answer to understand any tax?

The second lesson of the course: the seven elements of a tax under the Tax Code (object, base, rate, period, and the procedures for calculation, reporting and payment), and the concepts of taxpayer, tax agent and tax benefit, shown on the VAT of one furniture workshop.

What is a tax: the state's share hidden in the price of a coffee, and the word «tax» that came from "to assess"

The first lesson of the course: what a tax is in plain words, how it differs from a fine and from charity, which Latin verb the English word «tax» comes from, and how much VAT there is in the price of a cup of coffee.

VAT base adjustment: what is done if goods are returned, the price changes or a service is cancelled?

When Article 257 of the Tax Code allows the VAT base to be reduced or increased, which document to use and in which month, what the one-year term means: a month-by-month calculation using the example of a print shop.

Processing outside the customs territory (code 61): if raw material is processed abroad and brought back, what is formalised and how is it reflected in the accounts?

Fabric went abroad to have a pattern printed on it and came back as printed chintz. Which permit is needed, on which value are duty and VAT calculated, what happens if the product does not come back, and through which accounts does the fabric pass in the books: the example of a textile company.

How audit evidence is gathered: 7 procedures (ISA 500)

Inspection, observation, external confirmation, recalculation, reperformance, analytical procedures and inquiry: what each one proves well and where it is weak. A table using a hypothetical leather goods factory, sufficiency and appropriateness of evidence, and reliability factors.

How to keep track of goods and materials received and issued: turnover register, goods report and Excel template

Two registers that an accountant of a trading company keeps month by month: a quantity-and-amount turnover register and a goods report at selling prices. Cost of issues by the weighted average method, how the markup and VAT columns relate, and journal entries from the NAS No. 21 table — with a worked example. An Excel template with formulas and a completed example.

How should you check your VAT accounts before closing the month: do 4410, 6410 and the invoices match?

The VAT payable to the budget comes from the difference between two accounts. If one of them does not match the documents, the error passes into the return as well. A short month-end checklist and one discrepancy that was found.

Why does subtracting 12 percent give the wrong answer when finding the VAT included in a price?

The menu price includes VAT. If you subtract 12 percent from it, VAT goes up and income goes down. The correct formula and a simple check, using a café as an example.

Mirzo Ulugh Beg: the Samarkand observatory and the star table

Gathering the positions of nearly a thousand stars into a single table was a great achievement not only of astronomy but also of collecting, checking and preserving data. Ulugh Beg's observatory, the "Zij-i Sultani" and the lessons it left for today's accountant.

How was VAT invented: from France's 1954 reform to more than 170 countries

Value added tax, which today applies almost all over the world, appeared in France a little over seventy years ago. Its history in short key points and one calculation example.

Who benefits from the simplified 6% VAT regime? A calculation for two businesses

6% is less than 12%, but input VAT on purchases is not credited. Using a café and an electronics shop as examples, we work out which regime is cheaper and calculate the "break-even point".

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.

How should a new business partner be checked before signing a contract?

A cheap offer may have a sham company behind it. Such a partner puts your VAT and expenses at risk. A checklist and one cautionary story.

What journal entries are made when goods are sold?

A shop sold goods: in which accounts revenue, VAT, cost of goods and payment are recorded. A four-step example with a table.

Should you register as a VAT payer? Advantages and drawbacks

What being a VAT payer gives a business and what it demands. The story of two entrepreneurs and a comparison table.

Our bakery workshop sells its products to employees and we withhold the money from their next salary. Which account holds the employee's debt: 4710 or 4790? How are the sale and the withholding recorded?

Our export cargo left the factory at the end of October but crossed the border at the beginning of November. In the books we recorded the revenue in October. In which month do we show this export turnover in the VAT return?

A customer from Turkmenistan sends us steel sheet; we make shelving units from it, ship them back and receive only a fee for the work. At what VAT rate is this service of ours taxed, and what is recorded in the books?

Our export canned food was carried to Almaty by a road haulage firm from Uzbekistan, and it showed VAT at 0% on its invoice. The firm is local, though — is that right? What should we check?

A CCD was cleared for an export consignment and the accountant recorded the revenue the same day. Before the cargo reached the border, the buyer withdrew from the contract and the furniture went back to the warehouse. What do we do now in the accounts and for VAT?

We have prepared a consignment of cable for export, but the buyer wants to collect it in parts. May we keep the consignment in a customs warehouse, is any tax payable in that case, and what changes in the books?

We want to supply a large batch to a new buyer on deferred payment. Can we find out whether it has tax arrears and which tax regime it operates under, or is this a tax secret?

We are liquidating our LLC. What happens if the money from selling the property is not enough to fully cover the tax arrears? We also had an overpayment of one tax — will it be lost?

Our coffee shop joined a chain under a franchise: for using the brand and recipes we pay the brand owner 4 percent of revenue every month. In which accounts is this payment recorded?

We export dried fruit and want to charge VAT at 0 percent. Which documents confirm this, and when do we submit them?

Do tax benefits apply under the simplified VAT procedure? The international treaty exception

The Tax Service has explained that under the simplified procedure for calculating and paying VAT, the tax benefits and preferences of the general procedure do not apply. However, if a VAT benefit is established by an international treaty of the Republic of Uzbekistan, it can be used when the conditions are met.

4 state-owned banks are being prepared for privatisation: Uzpromstroybank, Asakabank, Aloqabank and Turonbank

The Ministry of Economy and Finance's fiscal strategy for 2027–2029 sets out the transformation and privatisation of four state-owned banks. Which document was adopted for each bank and what stage the process is at.

Draft resolution on supporting the jewelry industry discussed: zero duty on imported precious stones, extension of VAT exemptions

The Public Council for Supporting Entrepreneurship under the President discussed a draft Presidential resolution on the jewelry industry. The draft provides for a zero customs duty rate on imported precious stones, extension of VAT exemptions, lower customs fees and a digital control system. The document has not yet been adopted.

Fiscal Strategy 2027–2029: tax incentives to be reviewed, VAT exemptions cut, oversight to go digital

The Ministry of Economy and Finance has drafted a Fiscal Strategy for 2027–2029. It plans to review incentives under corporate profit tax, personal income tax and VAT, cut VAT exemptions, raise excise, property and resource tax rates step by step in line with inflation, and further digitalize tax and customs administration.

Presidential meeting: tax revenue tops 130 trillion soums, but loss-making companies and those only claiming input VAT are in focus

At a meeting on 21 July 2026 it was noted that tax revenue had grown by 27% since the start of the year to more than 130 trillion soums, while the annual plan for additional revenue was only 40% fulfilled. Using Bukhara region as an example, 162 companies with losses for three years in a row and 1,500 companies that only claimed input VAT were criticized.

Export currency proceeds are now filled in automatically in the VAT return

Lines 060 and 070 of Appendix 3 and line 01042 of Appendix 6 of the VAT return are now generated automatically from customs data. A new return package, No. 10006_47, has been released for this.

Partial refund of paid VAT no longer depends on the sustainability rating

Under Decree PF-175, businesses in catering, tour operating, hotels and several other sectors get part of their paid VAT refunded regardless of their sustainability rating.

New tax relief for small businesses: a simplified 6% VAT regime and other changes (Decree PF-100)

Presidential Decree PF-100 of 26 May 2026 lets businesses in trade, catering and services opt for a simplified 6% VAT regime, eases VAT administration and cuts back some tax audits.