Uzbekistan VAT and Turnover Tax Rules for Medical Device Businesses 2026

1. Key takeaways

The standard VAT rate in Uzbekistan is 12% and the profit tax rate is 15%; from June 1, 2026, the mandatory VAT registration threshold rises to 12,000 BCV (about 5 billion soums); and from January 1, 2026, businesses dealing in medicines and medical devices may not apply the turnover tax and must instead apply VAT and profit tax. The direct effect of this combination on medical device businesses is that even where turnover is modest, VAT must be handled on a general taxpayer basis, with full invoice discipline. The turnover tax regime was historically attractive to smaller businesses because it is charged on revenue without input invoice management; losing access to it removes that simplification entirely. Device importers and distributors now need functioning VAT accounting, electronic invoicing and input tax documentation from the first month of operation. The threshold change also matters for planning: 12,000 BCV at 412,000 soums per BCV corresponds to roughly 4.944 billion soums, a level that many small importers would previously have stayed under, but which no longer offers them a lighter regime because the sector exclusion applies regardless of turnover. Tax planning for a device business should therefore start from the premise that the general regime applies, budget at the standard rates, and treat any exemption as something to be confirmed item by item with the tax authorities rather than assumed in the financial model. Operationally, the change also has a data dimension: VAT accounting in Uzbekistan runs on electronic invoices, and the same invoice flow now carries marking code transfers, so the tax and traceability stacks are no longer separable projects. Building them together — one invoice process, one product master data set, one reporting calendar — is materially cheaper than building them twice and reconciling afterwards. Finally, the BCV linkage deserves attention in long-term contracts: a distribution agreement spanning multiple years should state that fee and threshold amounts are expressed in BCV multiples or include an indexation clause, so that future BCV adjustments do not require renegotiation of the commercial terms.

2. Legal basis

3. Expert insights

Insight 1: the closure of the turnover tax channel for devices is an underestimated change. From January 1, 2026, businesses dealing in medicines and medical devices are excluded from the turnover tax. The advantage of the turnover tax was assessment on revenue with no input invoice management; after exclusion, device businesses must build VAT accounting and electronic invoice processes. For small importers this measurably increases compliance cost, and it changes the comparison between importing directly and working through a local distributor, since whoever holds the goods now carries the full VAT compliance burden.

Insight 2: the 12,000 BCV threshold corresponds to about 5 billion soums. At a BCV of 412,000 soums, 12,000 BCV is approximately 4.944 billion soums. Businesses below the threshold could continue applying the turnover tax — but device businesses have been excluded from that regime, so the threshold has limited significance for device entities. Its practical use is in assessing whether other business lines within a group touch the mandatory registration threshold and need their own VAT compliance.

Insight 3: VAT exemption must be confirmed case by case. Channel information suggests that a VAT exemption may apply to registered medical devices supported by a valid registration certificate. This practical estimate is not traced back to specific provisions of the Tax Code, and GRZAN does not use it as a working conclusion. The correct approach is to budget at the 12% standard rate and confirm exemption applicability for specific product items with the competent tax authority before relying on it in pricing.

Insight 4: tax, registration and traceability are connected at the data level. The electronic invoice is both the carrier of VAT accounting and the vehicle for code ownership transfer in the Asl belgisi marking system (wholesale transfers run through electronic invoices, and retail exits run through receipts). Tax compliance and traceability compliance therefore share the same data flow, and a break at one point affects both ends simultaneously. Designing the two data streams together avoids maintaining parallel systems that can drift apart.

4. Practical recommendations

1. Prepare budgets at 12% VAT and 15% profit tax, without assuming exemption.
2. Confirm VAT exemption applicability for specific product items with the competent tax authority or a local tax adviser, case by case.
3. Build VAT accounting and electronic invoice processes on a general taxpayer basis for device businesses.
4. Check whether other business lines within the group touch the 12,000 BCV mandatory VAT registration threshold.
5. Design the electronic invoice process and the marking system data flow as one integrated architecture, to avoid two parallel datasets.

5. Verification checklist

• □ Budget prepared at 12% VAT and 15% profit tax
• □ VAT exemption applicability for specific product items confirmed with the competent tax authority
• □ VAT accounting and electronic invoice processes established for the device business
• □ 12,000 BCV threshold checked for other business lines in the group
• □ Electronic invoice process and marking system data flow designed as one architecture
• □ BCV value and applicable date confirmed (412,000 soums, from August 1, 2025)

GRZAN supports manufacturers, importers and authorized representatives with medical device registration, tax and fee planning and market access in Uzbekistan. For assistance with your product portfolio, contact info@grzanglobal.com.

Regulatory information verified as of October 29, 2026.