Frequently asked questions about Uzbekistan VAT
What is VAT?
VAT is the abbreviation of Value Added Tax and is in general due when goods and/or services are sold. It is generally chargeable on all taxable goods and services supplied (i.e., consumed or otherwise utilized) in Uzbekistan. It is a consumption tax because it is ultimately borne by the final consumer.
Who must pay VAT?
Where a non-resident supplier (such as Zoom) provides electronically supplied services to individuals (including individual entrepreneurs) in Uzbekistan, the non-resident supplier is required to collect VAT from customers and remit the VAT charged to the tax authorities in Uzbekistan. The responsibility to collect and remit VAT depends on whether the customer is a business customer or an individual consumer.
If you are a business customer, you should provide Zoom with your VAT registration number and a declaration that you are a business customer for Uzbekistan tax purposes. If your VAT registration number is valid and you confirm that you are a business customer for Uzbekistan tax purposes, then no VAT will be charged on the supplies made to you by Zoom. If you are not a business customer or if you are a business customer but do not provide a valid VAT registration number or declaration that you are a business customer for Uzbekistan tax purposes to Zoom, VAT will be charged on the supplies made to you.
Why am I being charged VAT?
Due to specific legislation in Uzbekistan, Zoom is required to collect and remit VAT in relation to supplies to individual consumers (including individual entrepreneurs) in Uzbekistan. If a customer has a “Sold To” location in Uzbekistan and has not provided a valid VAT registration number and declaration that it is a business customer for Uzbekistan tax purposes, Zoom will charge VAT on the supplies made to you.
The Sold To country entered by you is subject to cross-referencing against other data to verify that the Sold To country is accurate.
What is a VAT registration number?
A VAT registration number is a unique 12-digit number issued to identify VAT-registered persons in Uzbekistan by the State Tax Committee of the Republic of Uzbekistan.
How do I enter my VAT registration number?
To provide your VAT, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.
Zoom performs periodic validation checks of customer VAT numbers to ensure that the VAT number remains valid. If, during these periodic validations, it is identified that your VAT number is no longer valid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid VAT number is provided.
You are required to notify us if there is a change to your VAT registration status.
- Sign in to the Zoom web portal.
- In the navigation menu, click Plans and Billing then Billing Management.
- In the Contact Information section, click Edit.
- Select the Tax Exempt check box.
- Enter your VAT Number.
- Click Save.
- Sign in to the Zoom web portal.
- In the navigation menu, click Account Management then Billing.
- Click the Billing Information tab.
- To the right of Sold To Contact, click Edit.
- Select the Tax Exempt check box.
- Enter your VAT Number.
- Click Save Changes.
Does Zoom have a VAT registration number?
Yes, Zoom is registered for VAT in Uzbekistan as a non-resident supplier of electronically supplied services and will show its VAT registration number on invoices issued to customers with a “Sold To” in Uzbekistan.
Will Zoom issue Uzbekistan VAT invoices?
No, the Uzbekistan Tax Code explicitly provides that non-resident suppliers providing electronically supplied services to customers in Uzbekistan are not required to issue Uzbekistan VAT invoices (unlike other VAT payers that are required to issue VAT invoices of a specific format established by the Tax Code). Instead, Zoom will issue a commercial invoice showing Zoom’s Uzbekistan VAT registration number as well as the VAT charged, if applicable.
Is there a minimum threshold purchase amount before VAT is applied?
No, where a customer in Uzbekistan has not provided a valid VAT registration number and declaration that it is a business customer for Uzbekistan tax purposes, Zoom will charge VAT on all supplies made to you.
Are there any special exemptions or zero-rating applicable for charities or other business organizations under which VAT may not be charged?
No, where a customer in Uzbekistan has not provided a valid VAT registration number and declaration that it is a business customer for Uzbekistan tax purposes, Zoom will charge VAT on all supplies made to you.
Are there any VAT obligations for me as a customer?
If you have provided a valid VAT registration number and declaration that you are a business customer for Uzbekistan tax purposes to Zoom, no VAT will be charged on the supplies made to you. However, you may be required to report the purchase and self-assess for the VAT under the “reverse charge” mechanism in your VAT return. There is no VAT obligation for a customer who is not a business customer, i.e., individual consumers or individual entrepreneurs, but Zoom will charge VAT on supplies made to you.
What if I have a VAT registration number and forget to enter it?
A valid VAT registration number and declaration that you are a business customer for Uzbekistan tax purposes may be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If a valid VAT registration number and declaration that you are a business customer for Uzbekistan tax purposes are not entered at the time the next invoice is issued, VAT will be charged until a valid VAT registration number / declaration is provided. No retrospective adjustments will be made where you have not provided a valid VAT registration number and declaration that you are a business customer for Uzbekistan tax purposes to Zoom at the time of invoicing.
Decision tree – My “Sold To” address is Uzbekistan; will I be charged VAT?
Disclaimer
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant VAT rules in Uzbekistan. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.