Uzbekistan has established a procedure for refunding part of the value-added tax (VAT) to entrepreneurs engaged in jewelry activities. This is reflected in a Cabinet of Ministers resolution dated April 9 (No. 154), which amends the government resolution of November 7, 2024 (No. 745).

The new Cabinet resolution approves a temporary regulation "On the procedure for refunding part of the value-added tax paid to the budget to business entities engaged in jewelry activities and determining the value-added tax base." This regulation is effective until January 1, 2028, and aims to regulate tax incentives in the jewelry sector.

Entrepreneurs involved in the production and/or retail sale of jewelry items will receive an 80% refund of the paid VAT from the republican budget starting January 1, 2026. The refund process must be carried out after submitting tax reports, but no later than 3 months, providing entrepreneurs with an opportunity to recover funds more quickly.

Applications for VAT refunds will be processed through an automated program, designed to simplify the procedure and reduce corruption. The tax portion is refunded automatically upon meeting the following conditions: the tax base is determined based on the positive difference between the sale price of jewelry items and semi-finished products and the cost of precious metals and stones in their composition.

This development targets the growth of the jewelry industry in Uzbekistan's economy and incentivizes entrepreneurs, yet practical concerns arise about the complexity of the refund process and the effectiveness of automation. The government's resolution is adopted to stimulate economic growth, but the long-term impact on the budget and tax incentives remains unclear.

Source: www.gazeta.uz