All Pharmaceutical and Medical Service Companies Will Become VAT Payers
Uzbekistan
Starting from April 1, 2025, all legal entities engaged in the sale of pharmaceutical products or providing medical services in Uzbekistan will be required to pay Value Added Tax (VAT). This decision was made to simplify the tax system and increase state budget revenues.
Under the new regulation, tax authorities will automatically generate VAT reports based on data from online cash registers, electronic invoices (EHF), and other external and internal sources. This will significantly ease the tax reporting process for businesses.
This rule will take effect after the relevant amendments are made to the Tax Code. Currently, the taxation system for pharmaceutical and medical service providers is as follows:
Companies with an annual income of up to 1 billion soums pay a turnover tax.
Companies with an income exceeding 1 billion soums must pay VAT and corporate income tax.
Now, all legal entities operating in the pharmaceutical and medical sectors, regardless of their income, will be required to pay VAT. The corporate income tax rate for taxpayers in the social sector is set at 0%.
The tax rates for pharmacies are as follows:
In cities with a population of over 100,000 – 3%
In other settlements – 2%
In remote and mountainous areas – 1%
Additionally, taxpayers will have the option to pay turnover tax at a fixed amount.
These changes aim to establish a clearer taxation framework for the pharmaceutical and medical industries while increasing state budget revenues. The new system is expected to ensure greater transparency in business operations within the healthcare sector.
This rule will take effect after the relevant amendments are made to the Tax Code. Currently, the taxation system for pharmaceutical and medical service providers is as follows:
Companies with an annual income of up to 1 billion soums pay a turnover tax.
Companies with an income exceeding 1 billion soums must pay VAT and corporate income tax.
Now, all legal entities operating in the pharmaceutical and medical sectors, regardless of their income, will be required to pay VAT. The corporate income tax rate for taxpayers in the social sector is set at 0%.
The tax rates for pharmacies are as follows:
In cities with a population of over 100,000 – 3%
In other settlements – 2%
In remote and mountainous areas – 1%
Additionally, taxpayers will have the option to pay turnover tax at a fixed amount.
These changes aim to establish a clearer taxation framework for the pharmaceutical and medical industries while increasing state budget revenues. The new system is expected to ensure greater transparency in business operations within the healthcare sector.
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