RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of September 22, 2021 No. 595

About measures for further enhancement of registration of taxpayers and simplification of procedure for compensation of the value added tax

 For the purpose of ensuring execution of the Presidential decree of the Republic of Uzbekistan of February 3, 2021 No. UP-6155 "About the State program on strategy implementation of actions in five priority directions of development of the Republic of Uzbekistan in 2017-2021 in "Year of support of youth and strengthening of health of the population", and also for the purpose of support of activities of the disciplined taxpayers, enhancement of management system the value added tax by means of restriction of impact of human factor, creation of equal competitive conditions for all business entities, holding preventive actions for restriction of implementation of transactions (transactions) with partners with high tax risk the DECIDES: Cabinet of Ministers

1. Take into consideration that:

according to the resolution of the Cabinet of Ministers of August 19, 2021 No. 529 "About measures for provision of data on taxpayers to the third parties" provides implementation of system of provision to legal entities and physical persons of the data which are not tax secret and accounting data;

according to the resolution of the President of the Republic of Uzbekistan of July 10, 2019 No. PP-4389 "About additional measures for enhancement of tax administration" the taxpayer on value added for emergence of the right of offsetting of tax amount to value added on actually received goods (services) in accordance with the established procedure is subject to special registration accounting in tax authorities;

concerning the taxpayers on value added who submitted in tax authorities the application for statement on special registration accounting in accordance with the established procedure and terms, responsibility measures, stipulated in Article 219 Tax codes of the Republic of Uzbekistan, are not applied.

2. Agree with offers of the State Tax Committee of the Republic of Uzbekistan:

about expansion of practice of application of the approach based on risk by application to procedures of special registration accounting of taxpayers on value added in tax authorities;

about implementation in the accelerated procedure for return to the disciplined taxpayers of the tax amount on value added which is subject to compensation;

about forming by the State Tax Committee of the list of the disciplined taxpayers based on the risk analysis program, and also its publication on the official website.

3. Establish procedure according to which:

a) in case of special registration accounting of taxpayers on value added in tax authorities it is provided:

consideration in the 7-day time of statements for special registration accounting on the value added tax;

automatic issue of the certificate on special registration accounting, in case of non-presentation by tax authorities to the taxpayer on value added of results of consideration of the application at the scheduled time;

b) since March 1, 2023 for taxpayers on value added and legal entities with the state share in authorized fund (capital) in the amount of 50 percent and more is obligatory:

reflection in the automated information system of the state tax authorities "E-aktiv" of all transactions connected with registration (acquisition (construction), start, revaluation, the order) by business entities of fixed assets, intangible assets and commodity material resources, and also forming and decrease in own authorized fund (authorized capital);

reflection in the automated information system of the state tax authorities "E-aktiv" of removal from accounting of inventory stocks by business entities in the course of economic activity because of loss as a result of unfitness after the expiration of storage, physical and obsolescence, and also identification of shortage, loss or damage (breaking, separation) in time no later than three working days.

To the State Tax Committee till January 1, 2023 to introduce in the Cabinet of Ministers of the Republic of Uzbekistan reasonable offers on establishment of obligation of these procedures for all business entities;

c) since January 1, 2022:

agreements on provision (obtaining) in lease or free use by real estate by legal entities are subject to registration in bodies of the State Tax Service. At the same time registration in electronic systems of bodies of the State Tax Service of agreements on provision in lease or free use by real estate by physical persons and legal entities is performed remotely only electronically;

remaining balance of the inventory stocks which are stored on real estate units, leased or gratuitously used based on the agreements which are not registered in bodies of the State Tax Service is not subject to inventory count and for the purpose of the taxation is estimated as nonexistent in warehouse of the taxpayer.

4. Determine that:

registration or re-registration of legal entities by the centers of the state services is allowed only in case of confirmation of accessory of real estate to the applicant through the database of the state inventory, and also in the presence of the lease agreement or the agreement of free use in the database of tax authorities, at the same time strict use of these databases is also provided;

the applicant in case of state registration or re-registration of the subject of entrepreneurship on the Single portal of interactive state services of the Republic of Uzbekistan through the world information Internet for specifying of the place of implementation of business activity without fail uses bases of the tax and inventory data provided by the paragraph the second this Item;

again registered legal entities are registered based on data of the provisional agreement of lease or the free use by real estate registered in bodies of the State Tax Service. At the same time legal entities in ten-day time from the date of state registration shall register in bodies of the State Tax Service the agreement specified in the statement or other lease agreement or free use by other real estate, failure to carry out of this condition is the basis for recognition of the legal entity which is absent in the location (postal address) specified to them.

5. Approve:

a) Regulations on procedure for special registration accounting of taxpayers on value added in tax authorities according to appendix No. 1, providing:

the sequence and operations procedure on special registration accounting of taxpayers on value added;

the list of the taxpayers on value added who are subject to statement on special registration accounting without fail according to requirements of the Tax code of the Republic of Uzbekistan including terms of the direction to tax authority of the statement for special registration accounting of taxpayers on value added;

the list of the taxpayers on value added who are subject to statement on special registration accounting in voluntary procedure according to requirements of the Tax code of the Republic of Uzbekistan including terms of the direction to tax authority of the statement for special registration accounting of taxpayers on value added;

procedure and terms of consideration of the applications about statement on special registration accounting of taxpayers on value added, and also procedure for inclusion of taxpayers in risk groups (high, average and low level of tax risk) on analysis results of data;

procedure and terms of decision making about statement on special registration accounting of the taxpayer on value added based on inclusion in one of groups of tax risk;

the bases and procedure for suspension of action, cancellation, the cancellation of the certificate confirming statement on special registration accounting on the value added tax, issued to the taxpayer by tax authority;

b) The plan of practical actions for enhancement of administration of the value added tax according to appendix No. 2, directed to creating favorable conditions to the disciplined taxpayers and support of their activities by minimizing participation of human factor.

6. To the State Tax Committee of the Republic of Uzbekistan:

a) in a month:

create separate special structural divisions according to the analysis of tax risk and accounting of tax benefits in case of special registration accounting of taxpayers on value added within the general extreme number of staff of supervision manpower of the State Tax Committee;

introduce in the Cabinet of Ministers regulations of rendering the state services in obligatory registration in tax authorities of agreements of provision (obtaining) in lease and free use by real estate by legal entities and physical persons;

b) in two-month time to develop and implement the automated information system "E-aktiv" providing accounting of movement of fixed assets, intangible assets and commodity material resources in practice;

c) in three-months time:

together with the Ministry of Finance to introduce to the Cabinet of Ministers of the Republic of Uzbekistan the bill on modification and amendments in the Tax code of the Republic of Uzbekistan, having provided at the same time unification of submission of reports on the receipts tax and the value added tax and the due dates for tax payment;

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