Uzbekistan abolishes the VAT exemption on jewellery sales from 1 January 2026, with a margin base and 80% refund to 2028

What changed in detail

Resolution of the President of Uzbekistan No. PQ-207 of 26 June 2025, “On additional measures to support the jewellery manufacturing sector”, was published in the National Database of Legislation on 30 June 2025. Its paragraph 6, under the heading on reducing the shadow economy in the jewellery sector, sets the following from 1 January 2026:

• (a) abolished: (i) the VAT exemption for sales of jewellery and semi-finished products made of precious metals and precious stones; and (ii) the fee on retail sales of gold jewellery;
• (b) businesses producing or selling jewellery are VAT payers regardless of their income;
• (c) until 1 January 2028, jewellery producers calculate the VAT base as the positive difference between the sale price and the price of the precious metals and stones contained. Only metals bought from Navoi MMC, Almalyk MMC or on exchange trading, and imported stones, may be deducted, at prices published by the Tax Committee;
• (d) until 1 January 2028, businesses producing or selling jewellery automatically receive back from the republican budget, by the 25th of each month, 80% of the VAT they paid.

What it means

The exemption ended on 1 January 2026 as planned. The margin rule now also appears among the temporary benefits in Article 483 of the Tax Code. Law ZRU-1108 of 25 December 2025 excluded jewellery businesses from the turnover-tax regime (Tax Code Art. 461) from the same date, which is what makes them VAT payers in practice.

The package is meant to pull the trade into the VAT system rather than to raise revenue at once: with tax on the margin and 80% of it refunded, the effective burden is low until 2028. Both reliefs lapse on 1 January 2028 unless extended, and after that jewellery is taxed under the general VAT rules.