VALUE ADDED TAX IN UZBEKISTAN: THEORETICAL FOUNDATIONS AND CURRENT PRACTICE
DOI:
https://doi.org/10.5281/zenodo.19694770Keywords:
value added tax, VAT, Uzbekistan, tax reform, tax base, invoice credit method, revenue productivity.Abstract
Value added tax (VAT) constitutes one of the central revenue instruments of the Uzbek fiscal system, as established in Article 17(1) of the Tax Code of the Republic of Uzbekistan (2019). This article examines the structural features of the Uzbek VAT system, including its tax base, rate structure, exemption categories, and invoice-based credit mechanism. Drawing on the provisions of the Tax Code and comparative VAT literature, the study analyzes the economic efficiency implications of the current design, identifies potential distortions arising from exemptions and special treatments, and proposes reforms to enhance revenue productivity and reduce compliance costs. The paper finds that while the Uzbek VAT broadly conforms to international best practices in its general structure, targeted reforms in exemption policy and digital administration could significantly improve the system's performance.
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