STC reveals 1,500 cases of VAT fraud

In January-May this year, the State Tax Committee (STC) of Uzbekistan identified 1,500 cases of VAT fraud worth 77 billion soums, the newspaper Soliq plus writes.

Reportedly, the cases of VAT fraud have become more frequent, when both parties in collusion received unjustified benefits and reduced their tax liabilities.

“In just five months of this year, 1,500 cases were identified worth 77 billion soums, when business entities did not pay VAT, but at the same time they indicated in their invoices the amount of tax, which subsequently referred to the offset against the buyer of goods (works, services). This, respectively, led to a decrease in tax revenues to the state budget,” deputy head of the STC VAT administration department Aziz Umirzakov said. 

He notes that from now onwards, if such facts are revealed, the buyer of goods (work, services) will have to recalculate VAT, excluding from the offset the amount of tax attributable to the false VAT payer. Innovations in this field, as Umirzakov states, will improve the legal culture of business entities and ensure the completeness of tax collection.