ANALYSIS OF THE VAT ADMINISTRATION DEVELOPMENT IN UZBEKISTAN

Abstract

This study provides a comprehensive analysis of the development of ValueAdded Tax (VAT) administration in Uzbekistan. It traces the historical evolution of the VAT system, examining key reforms, regulatory changes, and administrative practices from its introduction to the present day. The research identifies fundamental, institutional, and instrumental challenges in the VAT framework, including inconsistencies in tax policy, the coexistence of traditional and modern VAT models, the prevalence of exemptions and reduced rates, and administrative inefficiencies. Emphasis is placed on the effectiveness of modern VAT mechanisms in enhancing compliance, broadening the tax base, and minimizing the cascading effects of taxation. The study also evaluates the impact of VAT reforms on small and medium enterprises, the informal economy, and overall fiscal stability. The findings highlight the need for continued institutional strengthening, policy simplification, and digitalization to ensure a more efficient and transparent VAT administration system in Uzbekistan.