Gov’t to simplify VAT refunds for restaurants, allow 40% reimbursement regardless of cashless payments

The proposal was presented to President Shavkat Mirziyoyev on May 5 as part of a review of measures to support businesses and resolve issues facing entrepreneurs.

Aziz Umrzakov, head of taxation methodology at the State Tax Committee, told local media that the president had instructed officials to remove obstacles to entrepreneurship, ease administrative pressure on businesses, and create more favorable conditions for private companies.

Under the current system, restaurants and cafes can reclaim between 20% and 40% of the VAT they have paid, depending on the share of cashless payments in their turnover. Businesses where cashless transactions account for at least 60% of revenue qualify for the maximum 40% refund, while those with lower shares receive smaller reimbursements.

“As part of the president’s initiative, this procedure will be simplified. All public catering businesses, regardless of the share of cash or cashless revenue, will be eligible for a 40% VAT refund,” Umrzakov said.