VAT rate of 13% from 1 January 2027: what taxpayers need to know

From 1 January 2027 the standard rate of value added tax in Tajikistan falls from 14% to 13%. The change is already written into the Tax Code, so businesses have until the end of the year to prepare their contracts, accounting software and invoices.

What the Tax Code says

Article 264 of the Tax Code sets the standard VAT rate at 15%. However, Article 397(4) (transitional provisions) sets different rates for taxable supplies and taxable imports: 14% from 1 January 2024 to 31 December 2026 and 13% from 1 January 2027. This wording was introduced by Law No. 2143 of 11 February 2025.

The reduced rates remain in place (Article 264(1)(2)):

• 7%: construction works, hotel services and catering;
• 5%: sales of domestically produced agricultural products, processing of agricultural products (except raw cotton processing), educational services and medical services in sanatoriums and resorts.

The same clause states that the reduced rate applies without the right to VAT credit. If a reduced-rate taxpayer imports goods, their subsequent supply is taxed at the standard rate, and the VAT paid on import may be credited (Article 264(3)). Such a taxpayer must keep separate records (Article 264(5)).

The zero rate applies to the transactions listed in Article 254.

Transactions spanning 2026 and 2027

The key factor is the date of the taxable transaction. Under Article 256 of the Tax Code this is the moment the VAT invoice is issued. If no invoice is issued before or on the day of the transaction, the date is the day of acceptance, sale or transfer of goods, performance of works or provision of services, or the day of shipment if the supply includes transportation (Article 256(2)).

Advances follow a separate rule: if the supplier does not issue an invoice within five days of receiving an advance, the date of the advance payment is treated as the taxable transaction (Article 256(3)). Advances received at the end of December 2026 therefore need particular attention.

What to do before the end of 2026

• Review contracts that will be performed in 2027: is the price stated inclusive or exclusive of VAT, and how will it change at the new rate?
• Set up your accounting software and e-invoice templates for the 13% rate from 1 January 2027.
• Track advances received in December and issue invoices for them on time.
• Update price lists and quotations where prices include VAT.

Other VAT changes in 2025 and 2026

Renewable energy equipment. Law No. 2210 of 17 December 2025 added part 10 to Article 251: imports and subsequent supplies of renewable energy equipment are exempt from VAT. This covers solar panels together with the power converter (inverter) and energy storage device (batteries), as well as spare parts and components. The exemption applies until 1 January 2031 (Article 397(19)).

Cotton and cocoons. Law No. 2285 of 17 June 2026 removed the words “cocoons, cotton fibre, cotton yarn and raw cotton” from Article 251(3) and Article 254(1). Article 251(3) lists goods whose supply, including for export, is exempt from VAT. Article 254(1) applies the zero rate to exports of goods other than those it lists. The law enters into force one month after its official publication (Article 2 of the Law).

Who pays VAT

VAT payers include, among others, any person whose total income for a period of no more than 12 full consecutive calendar months exceeds 1 million somoni, and any person importing taxable goods (Article 245(1)). The VAT return is filed and the tax paid no later than the 15th day of the month following the reporting period (Article 272(1)).

A draft law before parliament proposes raising the registration threshold to 3 million somoni. Until it is adopted, the 1 million somoni threshold applies. Read more: draft amendments to the Tax Code.

Questions and answers

ROMB Accounting teamProvisions checked against the official Adlia legal database.

This article is for information only and reflects the law as of the publication date. Before making decisions, check the current wording of the law or contact us for advice.