Uzbekistan Senate Approves New VAT Rules for E-Commerce

Tashkent, Uzbekistan (UzDaily.com) — The Senate of the Oliy Majlis of Uzbekistan on May 18 approved a law aimed at improving the regulation of electronic commerce and the taxation of digital trade, the upper chamber said.

The document introduces amendments to the Tax Code and the Law “On Electronic Commerce” and has now been submitted to the President for consideration.

A key provision of the law establishes an obligation to pay value-added tax (VAT) for foreign legal entities selling goods and services in Uzbekistan through electronic trading platforms. Such companies will be recognized as VAT payers and required to register with the tax authorities under the established procedure.

During the session, lawmakers said the main objective of the reform is to prevent losses in tax revenues from cross-border e-commerce, improve VAT administration, and ensure equal competitive conditions for domestic and foreign market participants. It was emphasized that taxation should follow the principle of place of consumption when goods and services are effectively sold within the country.

In cases where foreign companies operate through local partners, dealers, or representative offices, VAT agent responsibilities may be assigned to Uzbek residents. For direct online sales, tax calculations will be based on the value of goods and services sold.

The discussions highlighted rapid sector growth: over the past eight years, the volume of e-commerce in Uzbekistan has increased 20-fold, reaching US$1.3 billion. More than 90 e-commerce platforms currently operate in the country, including international services and domestic companies.

Among international players, Yandex, Ozon, and Wildberries were named, all of which already have legal structures or representative offices in Uzbekistan.

More than 70 local platforms are also active, including Uzum, Sello, and Zood Mall. According to data presented in the Senate, goods worth US$167.5 million were imported into the country via international courier shipments in 2024, while 400,000 citizens placed millions of online orders.

The law also introduces new legal definitions, including “electronic trading platform,” “order aggregator,” and “digital streaming service,” and sets requirements for platform operators regarding user data verification, personal data protection, and payment cybersecurity.

It also stipulates that payments in e-commerce must be processed through separate bank accounts, a measure expected to increase financial transparency and strengthen oversight of digital trade in the country.