Uzbekistan -AI in action: Automatic VAT Assessment Tool Based on E-Invoicing 

Background

Uzbekistan’s Tax Authority introduced a highly developed tax-risk assessment technology tool, a software-supported by AI, that evaluates electronic invoices (EI) and categorizes them according to risk-based criteria. The risk assessment-based tool will categorize EI and assign each a corresponding color (low, medium, or high).

In November, 2025, the Ministry of Economy shared amendments to the Tax Code based on the Presidential Decree that mandated the introduction of a new tax control system. The accompanying note shed light on the new tax control system and raised awareness for all taxable persons who issue electronic invoices. 

The VAT assessment system based on e-invoicing is designed according to the following principles: 

It’s a VAT control tool founded on AI, with the primary goal to increase tax collection by the tax agency, and to penalize suppliers that fail to remit collected tax from one side; and from the other to raise awareness to buyers when dealing with unscrupulous sellers 

The scope of AI evaluation of EI issued by the taxpayer is limited. The system cannot assign a high-risk ratio to more than 10% of the EIs issued by the taxpayer during the reporting period.

Timeline 

The risk-assessment system moved into the production phase on January 1, 2026. 

AI Control System – Coverage 

The AI tax control system’s main goal is to reduce the cases in which the buyer could claim input tax credits, while the supplier hasn’t remitted the collected tax to the state’s budget. With the introduction of these measures, the tax authority clearly transfers the responsibility to transaction parties, to “evaluate” with “whom” they are entering into business transactions. 

From January 1, 2026, the VAT amount on EI with high risk will be credited to the buyer only after it has been remitted to the responsible tax authority, by the supplier or by the buyer-tax agent. 

This control system introduces a one-of-a-kind feature for the buyers, and that is a possibility for the buyer to act as a tax agent(in advance instead of the supplier)to be able to use input tax credits, when it “recognizes” that the supplier could remit the owed tax later, or not at all. However, the supplier remains responsible for remitting the collected tax. 

The possibility of the tax agent permits the buyer to limit itself to the option of losing the input tax credit right, which is under the new system a real threat, considering that this AI-assessment tool was primarily used to block offset of tax credits, when it identifies the high risk of not remittance of the owed VAT by the responsible party. 

More and more jurisdictions across the world are introducing AI-supported tax tools to reduce the VAT gap, enhance transaction monitoring, identify risks of revenue loss, and penalise non-registered taxable persons.