Uzbekistan expands Tax Free system to boost tourist spending

Foreign visitors will be able to receive value-added tax refunds for purchases made in Uzbekistan within three working days, following new measures approved by President Shavkat Mirziyoyev to improve the country’s Tax Free system.

The reforms are aimed at expanding the use of VAT refunds for foreign citizens, increasing transparency in the retail sector, and reducing the shadow circulation of goods. The corresponding presidential resolution has been published on Lex.uz.

Under the new rules, restrictions on the types of goods eligible for VAT refunds will be removed. In addition, the minimum purchase amount required to qualify for a refund will be reduced from UZS 1 million to UZS 300,000.

Authorities expect the reforms to stimulate spending by international visitors. By the end of 2027, the government plans to increase the total volume of purchases made by foreign tourists in Uzbekistan tenfold.

Tax Free counters to operate at all international airports

Starting from April 1, the Tax Free system will operate at all international airports in Uzbekistan.

At present, Tax Free counters are available at nine airports – Tashkent, Samarkand, Bukhara, Fergana, Urgench, Karshi, Navoi, Nukus, and Termez.

The updated system will significantly speed up the refund process for foreign tourists.

Currently, VAT refunds transferred to bank cards are paid only after the 25th day of the month following the registration of the refund request. Under the new procedure, payments will be processed within three working days.

Foreign visitors will also have the option to receive VAT refunds in cash. In such cases, they will be able to reclaim 85 percent of the tax amount, while refunds made to bank cards will reach up to 90 percent. The remaining 15 percent will be charged as a service fee by the Tax Free system operator.

Digital identification and pilot project at border crossing

Within one month, the State Tax Committee is required to introduce email-based identification in the Soliq mobile application. The new function will be used to register purchases and process VAT refunds for foreign tourists.

In addition, after reconstruction is completed, a Tax Free service point will be opened on a pilot basis at the Gishtkuprik border customs post.