THE TAX FREE VAT REFUND SYSTEM IN UZBEKISTAN: A NEW INSTRUMENT FOR TOURISM AND RETAIL DEVELOPMENT

The Tax Free system in Uzbekistan is a value-added tax refund mechanism designed for foreign citizens who purchase goods in the country and export them when leaving Uzbekistan. Starting from April 1, 2026, Uzbekistan introduced a renewed VAT refund system for foreign citizens at all international airports. This reform is aimed at increasing the attractiveness of Uzbekistan as a tourist destination, stimulating retail trade, supporting local producers, and integrating the national tourism sector into international service standards. The system allows foreign tourists to receive a partial refund of VAT either in cash or by bank card, provided that the purchase meets the established legal requirements. This article analyzes the economic essence, legal basis, operating mechanism, expected benefits, and possible challenges of the Tax Free system in Uzbekistan.