eBay, the world’s largest online marketplace, has officially registered for tax purposes in Uzbekistan, as per UzDaily. As part of the registration process, eBay will now be required to pay value-added tax (VAT).
eBay joins a growing list of global companies, including Netflix, Amazon, Google, Apple, and Zoom, that have registered with Uzbekistan's special tax office for foreign internet companies. To date, 64 foreign firms are currently paying VAT in the country.
According to Uzbekistan's Tax Committee, from January to September 2024, 61 foreign companies offering electronic services in the country contributed UZS 101.9bn (about $8.3mn) to the national budget. This represents a 2.1-fold increase compared to the same period last year.
In December 2024, Uzbekistan introduced new regulations requiring all companies providing e-commerce services to establish a legal entity in the country.
While major players such as eBay and Amazon have yet to set up representative offices in Uzbekistan, the new rules raise questions about their long-term strategy and operations in the local market.
Earlier it was reported that at the end of 2024, Uzbekistan's tax authorities issued notifications to international companies in e-commerce, IT, and entertainment sectors, requiring them to pay value-added tax (VAT) on electronic services provided to individuals and entrepreneurs in the country. The notifications were sent to both companies already registered as VAT payers and those not yet registered.
As stated on the government's official tax website, more than 60 Internet companies are currently registered to pay VAT on electronic services. The tax authorities are reviewing transactions made through bank cards and cross-checking them with VAT reports on services provided to Uzbek clients. This has heightened attention on VAT regulations for electronic services and the registration process for foreign Internet companies.
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