On Measures to Introduce Modern Information Technologies into the Payment System in Trade and Services and to Strengthen Public Control in This Sector

As a result of the comprehensive measures adopted to support the private sector, conditions are being created to further increase the number of business entities and expand the types of services provided to consumers.

In the context of large-scale reforms being implemented for the long-term development of the country's economy, the coordinated activity of consumers, business entities, and state tax service bodies through information technology is of particular importance.

To further liberalize the trade and services sector, sharply increase its volume, widely introduce modern information technologies into the payment system, and create necessary conditions for implementing public control in this sector:

1. The proposal of the State Tax Committee of the Republic of Uzbekistan, the Ministry of Finance, the Central Bank, and the Chambers of Commerce and Industry regarding the introduction of "virtual cash registers" (hereinafter referred to as virtual cash register) as online fiscal control cash registers (hereinafter referred to as online-FCC), which have the function of transmitting information about transactions conducted with the population in cash and/or via bank plastic cards in trade (service) branches to state tax service bodies in online mode, is approved.

2. The State Unitary Enterprise "Scientific and Information Center 'New Technologies'" under the State Tax Committee of the Republic of Uzbekistan is designated as the fiscal data operator responsible for independently and permanently receiving, processing, cryptographically protecting, and storing fiscal data received in online mode (hereinafter referred to as the Operator).

3. The following procedure is established:
   a) If business entities switch to using online-FCC or virtual cash registers:

   • Their obligations to use fiscal memory-equipped control-cash machines, maintain a cashier-operationist logbook, and generate daily reports for each control-cash machine at the end of the working day are abolished;
   • They have the right to deposit cash into bank cash desks via collection services at periods determined by themselves or independently, regardless of the amount of average daily cash revenue;
   • They are granted the right to reduce the amount of profit tax or single tax payment due, or the fixed tax amount, by an amount equal to the costs associated with purchasing, installing, and commissioning each such device, but not exceeding ten times the base calculation amount, subject to registration of the online-FCC with the state tax service bodies by January 1, 2021;
   • The main part (database) of the virtual cash register software product is provided free of charge by the State Tax Committee of the Republic of Uzbekistan;
     b) Funds in the form of bonuses (cashback) transferred to individuals' bank plastic cards or discount cards based on mass offer terms (money, points, and other units) are not considered as the basis for calculating personal income tax from individuals; c) Income obtained by individuals from the sale of livestock, apiculture, and agricultural products grown in household conditions, including farms, in natural and processed form (excluding industrial processing), as well as from the sale of live animals or slaughtered meat, is exempt from personal income tax. The procedure for requiring documents confirming that the sold products were grown on the garden plot allocated to the individual or their family members is abolished.

4. The schedule for the phased transition of business entities with cash revenue to the use of online fiscal control cash registers or virtual cash registers is approved according to the Appendix.

It is specified that the Ministry of Information Technologies and Communications of the Republic of Uzbekistan, together with the State Tax Committee, the Cabinet of Ministers of the Karakalpakstan Republic, and regional hokimliks, will approve annually starting from January 1, 2020, a list of remote and hard-to-reach populated areas where the schedule approved by this Decree will not apply to business entities operating in these territories.

5. Business entities switching to the use of online-FCC or virtual cash registers must:
   • Ensure that receipts (hereinafter referred to as receipt) issued contain mandatory information: name of goods (works, services), quantity, value (price), total amount, VAT rate and amount if the entity is a VAT payer, as well as a QR code and fiscal mark. Receipts without this information are not considered valid;
   • Issue receipts in offline mode if there is no technical possibility to transmit data to the Operator in real-time. In this case, data must be transmitted to the Operator within 24 hours;
   • Provide customers with both the payment terminal receipt and the online-FCC or virtual cash register receipt for payments made through payment terminals.

After the deadlines indicated in the schedule approved by this Decree expire, the realization of goods, performance of works, and provision of services without using online-FCC or virtual cash registers, or the failure to present receipts with online-FCC/virtual cash registers or receipts lacking fiscal marks, shall be assessed as conducting trade and providing services without using mandatory fiscal memory-equipped control-cash machines or payment terminals, serving as grounds for liability as established by legislation.

6. Consent is given to the proposal of the State Tax Committee and the Ministry of Finance of the Republic of Uzbekistan to conduct a pilot project in Tashkent city starting from October 1, 2019, organizing lottery games based on QR codes or fiscal marks presented on receipts by business entities that have switched to using online-FCC or virtual cash registers.

The Ministry of Finance of the Republic of Uzbekistan shall allocate one billion soums from state budget funds by November 1, 2019, to organize lottery games.

7. The State Tax Committee of the Republic of Uzbekistan, together with the Ministry of Finance, shall submit substantiated proposals to the Cabinet of Ministers by July 1, 2020, regarding the introduction of this practice in other regions of the Republic based on the results of the pilot project.

8. The State Tax Committee of the Republic of Uzbekistan, together with the Agency for the Development of the Capital Market, shall develop and establish, in the prescribed manner, the procedure for conducting lottery games among individuals who register receipts by October 1, 2019.

9. The "Uzelteksanoat" Association is recommended, together with the State Tax Committee of the Republic of Uzbekistan:

   • To launch the production of online-FCC and special devices capable of transmitting data to state tax service bodies in online mode, based on enterprises included in the association;
   • To organize technical service centers in all regions to ensure uninterrupted operation of online-FCC and virtual cash registers.

10. The State Tax Committee of the Republic of Uzbekistan shall, by October 1, 2019:

    • Develop and implement special software for virtual cash registers and fiscal modules to ensure the online transmission of information about sold goods (works, services) to state tax service bodies;
    • Implement a system for registering QR codes or fiscal marks on receipts via mobile applications or the official website of the State Tax Committee;
    • Develop and submit to the Cabinet of Ministers for approval the technical requirements for online-FCC, virtual cash registers, and fiscal modules permitted for use in the Republic of Uzbekistan, their unified registry, the registry of technical service centers, and the registration procedure with state tax service bodies.

11. The State Tax Committee of the Republic of Uzbekistan, together with the Ministry of Finance and interested ministries and departments, shall develop and establish, in the prescribed manner, a "remote inspection" system and liability procedures for failing to present receipts via online-FCC or virtual cash registers, or presenting receipts without QR codes (or fiscal marks), within two months.

12. Responsibilities are assigned to:

    • The Chairman of the State Tax Committee of the Republic of Uzbekistan B.A. Musaev, the Chairman of the Cabinet of Ministers of the Karakalpakstan Republic, and the hokims of regions and Tashkent city: for the phased transition of business entities with cash revenue in the republic to the use of online-FCC or virtual cash registers according to the approved schedule;
    • The Chairman of the State Tax Committee of the Republic of Uzbekistan B.A. Musaev, the First Deputy Minister of Finance T.A. Ishmetov, and the Hokim of Tashkent City J.A. Ortikhojayev: for organizing lottery games based on QR codes or fiscal marks presented on receipts by business entities in Tashkent city that have switched to using online-FCC or virtual cash registers.

13. The National Information Agency of Uzbekistan and the National Television and Radio Broadcasting Company of Uzbekistan are recommended to organize wide coverage in mass media of the goals, tasks, essence, and implementation process of this Decree.

14. Paragraph 3, fifth line of Decree PF-1504 dated August 9, 1996, "On Measures to Increase the Liability of Economic Entities for Budget Settlements" of the President of the Republic of Uzbekistan, is hereby stated in the following wording:
    "All economic entities with cash revenue shall deposit their cash revenue into banks. In this regard, economic entities having an average daily cash revenue exceeding twenty times the base calculation amount shall deposit their cash revenue into bank cash desks daily via collection services or independently. Economic entities with average daily cash revenue less than the specified amount, or those that have switched to using online fiscal control-cash machines (or virtual cash registers), have the right to deposit their cash revenue into bank cash desks via collection services at periods determined by themselves or independently."

15. The State Tax Committee of the Republic of Uzbekistan, together with other ministries and departments, shall submit proposals to the Cabinet of Ministers within one month regarding changes and additions to legislative acts arising from this Decree.

16. The Ministry of Finance of the Republic of Uzbekistan shall take into account the norms indicated in this Decree in the new edition of the draft Tax Code of the Republic of Uzbekistan.

17. Control over the execution of this Decree is assigned to the Prime Minister of the Republic of Uzbekistan A.N. Aripov, Advisor to the President of the Republic of Uzbekistan R.A. Guliamov, and Deputy Prime Minister - Minister of Finance of the Republic of Uzbekistan J.A. Kuchkarov.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV Tashkent city, September 6, 2019 Decree No. PF-5813

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APPENDIX

Schedule for the Phased Transition of Business Entities with Cash Revenue to the Use of Online Fiscal Control Cash Registers or Virtual Cash Registers

No.	Category of Business Entities	Deadline
1.	Business entities engaged in the sale of alcohol and tobacco products, medicines, automobiles, gasoline, diesel fuel, and gas fuel	January 1, 2020
2.	Business entities with annual turnover (revenue) exceeding five billion soums based on the previous year's results	August 1, 2020
3.	Business entities with annual turnover (revenue) exceeding one hundred million soums or reaching this threshold during the year based on the previous year's results	January 1, 2021
4.	All business entities	January 1, 2022

(National Database of Legislation Acts, 07.09.2019, No. 06/19/5813/3708)