Value Added Tax in Uzbekistan and Slovakia: A Comparative Analysis

This study compares the value-added tax (VAT) systems of Uzbekistan and Slovakia under the rules in force in late 2026. Uzbekistan operates a pro-growth, flat 12% standard rate but exempts most small firms through a massive UZS 1.0 billion threshold and non-creditable turnover regimes, whereas Slovakia operates a strict, digitally enforced system with a 23% standard rate, multiple reduced tiers, and a €50,000 threshold, bound by EU directives. Using comparative legal analysis and macroeconomic gap assessments, the study finds that Uzbekistan's high threshold and simplified regimes fracture the invoice-credit chain, creating a severe "VAT trap" that discourages B2B integration and depresses C-efficiency. Conversely, Slovakia's automated ledger cross-matching (Kontrolný výkaz) has successfully driven its compliance gap down to 10.5%. The study recommends that Uzbekistan transition its e-invoicing clearance system into an automated cross-matching engine, phase out non-creditable presumptive levies, and gradually lower its registration threshold to unify the tax base.