Uzbekistan to introduce trade-in program from October 1

From October 1, trade-in program will be introduced in Uzbekistan, which provides people with the opportunity to purchase a new vehicle of local production by handing over the used one to an authorized dealer and paying the difference in its value.

It should be recalled that in July of this year, Shavkat Mirziyoyev signed a decree “On additional measures for the accelerated development of the automotive industry of Uzbekistan”.

According to the document, from October 1, a trade-in program is being introduced in Uzbekistan, which provides customers with the opportunity to purchase a new vehicle of local production by giving the old one to an official dealer that sells new domestic vehicles. The customer needs to pay the cost difference.

Within the framework of the trade-in program, when an authorized dealer sells used motor vehicles to individuals, the tax base for calculating VAT is defined as the positive difference between the sale price and the book value of disposal facilities, including the VAT amount.

The decree states that the followings are not subject to mandatory notarization of a contract for the sale by official dealers:

- used motor vehicles with the introduction of the procedure for issuing to the customer reference accounts in the established form;

- new vehicles purchased from authorized dealers of domestic manufacturers;

In addition, the official dealer does not pay a fee for the purchase of used vehicles when they are registered with the Interior Ministry bodies of the Republic of Uzbekistan.

The Ministry of Interior, in the prescribed manner, was instructed to provide official dealers of domestic manufacturers with blanks of reference accounts of appropriate security for the sale of used vehicles purchased under the trade-in program.