Tax Audits in Uzbekistan: How to Prepare and What to Do When You Get a Notice

A tax inspection notice worries almost every business owner — even those whose books are in order. In reality an inspection is not a disaster but a procedure with its own rules and deadlines. Let's look at the types of inspections, how they differ and how to prepare for each.

Three types of tax inspections

The Tax Code (Article 137) sets out three main types of inspections. They differ greatly in depth, timing and consequences:

• Desk review — an analysis of tax and financial statements and other documents without visiting you. It lasts up to 60 days, or up to 30 days for a VAT refund. If errors are found, you receive a request to correct them or provide justification within 5 days.
• On-site inspection — a check on site of compliance with specific rules: cash operations, employee records, stock-taking and the like. It lasts up to 10 working days and is carried out without prior notice, but must be registered in the Unified Inspection Registration System. No additional taxes are assessed as a result of it.
• Tax audit — the most in-depth inspection: of whether all or certain taxes for a period were calculated and paid fully and correctly. It lasts up to 30 working days and can be extended to 2–6 months. It is ordered only for companies with a high level of tax risk (under the Tax Gap system), and you are notified 30 calendar days in advance.

Special types of tax control

• Transfer pricing review — whether transactions between related parties and foreign trade operations match market prices.
• Monitoring and timekeeping observation — on-site observation of actual revenue, cash flow and the real number of employees. If revenue or headcount on the day of observation differs noticeably from your reports, that raises questions.

What gets checked first

The tax authority already holds most business data electronically, so control often starts with looking for mismatches — and these also drive the tax risk that determines who gets audited:

• whether electronic invoices match the amounts in your returns;
• whether cash register and card terminal revenue matches what is reported;
• whether input VAT is recorded correctly, with no deductions from questionable counterparties;
• whether payroll taxes match headcount and the salaries actually paid;
• whether there is any debt or overpayment on your tax account.

How to prepare for each inspection

• Desk review: respond to the request quickly — 5 days pass fast. Keep documents supporting any disputed amounts at hand, and reconcile with the budget regularly in the taxpayer's online account.
• On-site inspection: there is no warning, so your cash desk, employee paperwork and stock records must always be in order. When inspectors arrive, you are entitled to make sure the inspection is registered in the Unified Inspection Registration System.
• Tax audit: the 30 days after the notice are your preparation time. Reconcile with the budget, gather primary documents for the period under review, and bring in an accountant and a lawyer. If you disagree with the conclusions of the report, file objections within the set deadline.
• Timekeeping observation: real revenue and headcount should match what you report — then a day of observation changes nothing.

The best defence is lowering your risk in advance

A tax audit isn't ordered for everyone, only for companies with a high tax risk. Clean primary documents, invoices that match your reports, vetted counterparties and tidy HR records lower that risk and make any inspection routine. Once a year it's worth running an internal review or an independent audit to find errors before the inspector does.