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Uzbekistan Clarifies Representative Offices are Not VAT Payers — Orbitax Tax News & Alerts

The State Tax Committee of Uzbekistan recently issued a clarification on the VAT obligations of representative offices in Uzbekistan of foreign companies. The clarification explains that, in accordance with Uzbekistan law, representative offices are not recognized as payers of VAT or payers of turnover tax, which replaces income tax and VAT for small businesses with turnover below UZS 1 billion. However, it is also explained that if a foreign company sells goods or services in the territory of Uzbekistan, the foreign company will be recognized as a VAT payer for such transactions, regardless of the total income amount.