12% VAT Calculator: How to Add and Extract the Tax

VAT rates in Uzbekistan

The rate depends on the type of transaction, not on the size of the deal. The zero rate and an exemption are different regimes: at 0% input VAT can be credited, because such supplies are taxable (Article 266 of the Tax Code; for exports of goods — as a rule, in proportion to the foreign currency proceeds received), whereas VAT on goods and services used for exempt supplies is not creditable (Article 267 of the Tax Code).

• 12% — the general rate, unless Chapter 36 of the Tax Code provides otherwise (Article 258); in effect since 1 January 2023;
• 15% — the rate under Article 258 from 1 January 2020, when the new version of the Tax Code came into force, until 1 January 2023: Law No. ZRU-812 of 30.12.2022 replaced «15» with «12» in Article 258. It is needed only to check and correct documents for 2020–2022;
• 0% — exports of goods under the customs export procedure, transport of foreign goods in customs transit, services directly related to international transport and other cases in Chapter 36 of the Tax Code (Articles 260–264);
• no VAT — supplies exempt from tax (Chapter 33 of the Tax Code, Articles 243–246): for example, childcare services in pre-school educational institutions, care for the sick and elderly, educational services, and certain financial and insurance services.

VAT calculation formulas

The tax base is the value of goods (services) at the transaction price excluding VAT (Article 248 of the Tax Code), and the tax itself is the percentage of the base corresponding to the rate (Article 265). In a VAT-inclusive price, the tax makes up 12 parts out of 112, i.e. about 10.71%, so you cannot take 12% of an amount that already includes the tax. Formulas for the 12% rate:

• add VAT: VAT = amount excluding VAT × 12 / 100;
• amount including VAT = amount excluding VAT × 1.12;
• extract VAT from a tax-inclusive amount: VAT = amount including VAT × 12 / 112;
• amount excluding VAT = amount including VAT / 1.12 (or amount including VAT − extracted VAT).

Worked examples in UZS

Results are rounded to two decimal places. The check is simple: the amount excluding VAT × 1.12 should return the VAT-inclusive amount (allowing for rounding).

• UZS 100,000 excluding VAT: VAT 12,000, total UZS 112,000;
• UZS 100,000 including VAT: VAT included 10,714.29, excluding VAT UZS 89,285.71;
• UZS 1,120,000 excluding VAT: VAT 134,400, total UZS 1,254,400;
• UZS 1,120,000 including VAT: VAT included 120,000, excluding VAT UZS 1,000,000;
• UZS 5,000,000 excluding VAT: VAT 600,000, total UZS 5,600,000;
• UZS 5,000,000 including VAT: VAT included 535,714.29, excluding VAT UZS 4,464,285.71.

«VAT included» in a contract and an e-invoice

The wording «VAT included» means that the tax is already in the price and is extracted using the 12/112 formula. If the price is stated «excluding VAT» or «plus VAT», the tax is added on top using the 12/100 formula; a seller that is not a VAT payer (for example, one that pays turnover tax) does not charge VAT at all (Article 237 of the Tax Code). When there is no wording at all, the parties often understand the price differently, so it is worth fixing it explicitly in the contract.

On a sale, the seller issues an invoice to the buyer — as a rule, in electronic form in the e-invoice (ESF) information system; this rule does not apply if the buyer is given a cash receipt or another document of the prescribed form (Article 47 of the Tax Code). For the buyer, a separate tax line matters: input VAT can be credited only if there is an invoice or another supplier document for the goods (services) received in which the tax amount is shown separately, and the supplier itself is registered as a VAT payer (Article 266).

If the price changes or the quantity is clarified after shipment, the seller must issue an additional or corrected invoice (Article 47); VAT on the difference is calculated using the same formulas.

Rounding VAT

Extracted VAT is almost always fractional: 100,000 × 12 / 112 = 10,714.2857… The Tax Code contains no separate rounding rule for the VAT amount, so consistency is what matters: choose one method (tax on the document total or on each line), fix it and apply it the same way in all documents.

With line-by-line calculation, the sum of the tax by line may differ slightly from the tax calculated on the document total. This is rounding arithmetic, not a rate error, but discrepancies between invoices and the books are best avoided: VAT returns include data from the purchase and sales ledgers (Article 273 of the Tax Code).

Who pays VAT

The range of VAT payers is set by Article 237 of the Tax Code. Taxpayers are persons who sell goods (services) and/or carry on business activity in Uzbekistan:

• legal entities of the Republic of Uzbekistan — except those paying turnover tax;
• individual entrepreneurs (IE) — if income from sales of goods (services) for the tax period exceeds UZS 1 billion or they have switched to VAT voluntarily;
• foreign companies — when selling goods (services) whose place of supply is Uzbekistan, and when operating through a permanent establishment;
• the participant of a simple partnership entrusted with managing its common affairs — for activities under the simple partnership agreement;
• persons moving goods across the customs border — in accordance with customs legislation.

The UZS 1 billion threshold and reporting deadlines

Legal entities with total income for the tax period of no more than UZS 1 billion may apply a special regime — turnover tax — instead of VAT and profit tax (Articles 461 and 462 of the Tax Code); they may voluntarily opt out by applying for registration as a VAT payer (Article 462). Turnover tax does not apply to certain companies regardless of income — for example, importers, producers of excisable goods, audit organizations and tax consultancy organizations (Article 461). If income exceeds UZS 1 billion during the tax period, the switch to VAT and profit tax takes effect from the day that amount is reached (Article 462) — so income should be tracked on a cumulative basis.

The VAT tax period is one month (Article 259 of the Tax Code); a different procedure applies only to foreign companies providing electronic services (Chapter 39). Returns are filed no later than the 20th day of the month following the tax period, and the tax is paid no later than the filing deadline (Article 273).

Common VAT calculation mistakes

Most VAT mistakes are arithmetical or documentary, and they can be spotted before the return is filed:

• extracting VAT as 12% of the tax-inclusive amount: for UZS 5,000,000 you get 600,000 instead of 535,714.29 — the tax is overstated by UZS 64,285.71;
• adding 12% on top of a price that already includes VAT: tax is charged on tax, and the price for the buyer is overstated;
• applying 15% to transactions from 1 January 2023 onwards, or 12% to corrections for 2022 and earlier periods;
• charging VAT on exempt supplies or, conversely, not charging it on taxable ones: exemptions are listed in Chapter 33 of the Tax Code;
• confusing 0% with an exemption; for exports, documents confirming the right to the zero rate are submitted together with the VAT return (Article 260);
• crediting input VAT on a document without a separately stated tax amount, from a supplier not registered as a VAT payer, or on entertainment expenses (Articles 266 and 267);
• crediting input VAT on goods (services) from a supplier whose VAT payer certificate has been suspended, terminated or cancelled (Article 266¹);
• from 1 January 2026 — crediting input VAT on an invoice classified as high-risk: such tax is credited only if the buyer has paid it to the budget as a tax agent (Articles 266¹ and 267);
• missing the moment income exceeded UZS 1 billion and continuing to issue documents without VAT (Article 462).