New tax code reduces VAT to 15% from 18% on 1 Jan on cashless transactions; more cuts to come
The Tajik Finance Ministry has passed a new Tax Code which will reduce the Value Added Tax rate by 5% in the following 3 steps:
- 1 January 2022: 18% to 15%
- 1 January 2024: 15% to 14%
- 1 January 2027: 14% to 13%
Higher VAT rate for cash-based transactions
To further encourage the adoption of electronic (and therefore traceable) transactions, the VAT rates on cash-based transactions will rise as follows:
- 1 January 2022: 18% (unchanged)
- 1 January 2024: 19%
- 1 January 2027: 20%
The Tajik VAT registration threshold remains unchanged at TJS 1 million (approx €76,000. Or $90,000) per annum. Tajikistan VAT on digital services was introduced from 16 January 2021.
Nearby Uzbekistan VAT rate is being cut from 15% to 12% from 2023.
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