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

Presidential Decree No. PF-100 of 26 May 2026 ("On creating more favourable economic and administrative conditions for the growth of small businesses") eases the tax regime for small businesses. The main novelty: businesses in trade, catering and services can opt for a simplified VAT regime at 6%. Paragraph ii of sub-item "a" of item 3 of the Decree was amended by Decree No. PF-175 of 27 August 2026; the summary below follows the amended wording.

The Decree was adopted in May, so many of its deadlines have already arrived.

Which changes apply from when?

Date	What changes
From 1 June 2026	Threshold for moving to the general tax regime: 12,000 times the BCA
From 1 June 2026 to 1 January 2030	Simplified 6% VAT regime (optional)
From 1 June 2026	Relief for hotels and catering
From 1 July 2026	Fully automatic reactivation of bank account operations after replying to a desk tax audit
By 1 October 2026	Automatic refund of negative VAT differences based on real-time risk assessment
From 1 January 2027	Alcohol fees merged; relief on rent and on adviser costs
Until 1 January 2028	Small businesses may correct tax-risk indicators themselves; some audits are not held

Who can use the simplified 6% VAT regime, and how does it work?

It is open to businesses whose main activity is catering, trade or services. Enterprises with a state share of 50% or more and large taxpayers cannot choose it. The regime is optional and applies from 1 June 2026 to 1 January 2030.

Terms:

VAT is charged at 6% on the entire turnover from sales of goods (services).
The corporate profit tax rate is 0%, and the obligation to file profit tax returns is abolished.
VAT paid on purchased goods and services cannot be credited.
VAT exemptions and preferences of the general regime, and the partial refund of tax paid, do not apply.
Any existing negative VAT difference is written off.
A customer who buys goods or services from such a business has the right to credit the VAT.

Switching in and out: moving to the simplified regime or leaving it takes effect from the first day of the month following the month in which the notice was sent. On returning to the general regime, the taxpayer may, in the established manner, credit the VAT on the carrying amount of inventories and long-term assets on its balance sheet at the switching date.

The Tax Committee has been instructed to introduce, within one month, a system for calculating 6% VAT in electronic invoices and purchase receipts and for keeping separate records of it.

Example (prepared by the author): most of the "Bahor" teahouse's costs are market produce bought without VAT. It has little input VAT to credit, so the 6% regime may suit it. A building-materials shop, by contrast, buys large volumes from VAT payers: losing the right to credit input VAT could cost it a lot. So it is worth doing the numbers under both regimes before choosing.

What changed for hotels and catering?

From 1 June 2026:

Businesses providing hotel and catering services are allowed to accept cash when selling alcohol and tobacco products.
When they buy alcohol, beer and tobacco products, as well as water and soft drinks, the digital marking codes are treated as sold for final consumption at these businesses (as amended by PF-175).
For catering businesses, a simplified procedure is introduced for registering certain categories of staff the same day and for a fixed term via the labour authorities' mobile app, and for paying their wages.
The partial refund of VAT paid by catering businesses is made at 40% of the tax paid, regardless of the share of non-cash revenue.
Rent for using land plots adjacent to the buildings of catering, trade and service businesses is set at one times the land tax determined under the Tax Code.

What changes from 1 January 2027?

The fees for the right to retail alcohol and for the right of catering businesses to sell alcohol are merged, at a rate of 10% of the BCA.
When individuals and legal entities rent property with a total area over 1,000 square metres to businesses, minimum rent rates for tax purposes do not apply. Tashkent city is an exception.
Small businesses may deduct the costs of engaging bookkeeping firms and tax advisers at double the amount.

What got easier in VAT administration and audits?

A VAT payer certificate is issued only for taxpayer registration purposes and is not a basis for enforcement measures.
The procedure for temporarily suspending a VAT payer certificate has been abolished.
Mandatory VAT registration of legal entities, individual entrepreneurs and self-employed persons importing goods has been abolished.
Negative VAT differences of up to 10 million soums, whether arising before the Decree took effect or later, are refunded automatically without an application. No tax audits are held in connection with these refunds.
From 1 January 2027, human involvement in refunding negative differences is dropped where tax risk is low.
The Tax Committee and the Ministry of Economy and Finance were instructed to introduce, by 1 October 2026, automatic refunds of negative differences based on real-time risk assessment of e-invoices and tax returns.
Until 1 January 2028, small businesses may themselves correct indicators of violations flagged by the automated "Tax risk identification, analysis and assessment" program. If the tax risk amount is up to 500 million soums, no tax audit is held; if up to 100 million soums, no field tax audit is held.
From 1 July 2026, reactivation of bank account operations is fully automated when explanations and/or corrections are submitted in response to a desk tax audit request.

What else should you know?

Provisions of the Decree without a later date took effect immediately. The Ministry of Economy and Finance, together with the Tax Committee, was to submit proposals on legislative amendments to the Cabinet of Ministers within one month. So keep an eye on the related changes to the Tax Code and other acts as well.