Temu Hit with More Tax Demands Before Blockade Lifted
The National Agency for Perspective Projects (NAPP) is cracking down on the Chinese marketplace Temu, requiring them to pay VAT for the period before their legal entity registration in Uzbekistan and undergo transaction fiscalization. Despite registering as a legal entity in Uzbekistan, Temu is facing issues with NAPP as they have no information regarding the registration of Temu’s representative office.
The Tax Committee has confirmed Temu’s official registration as a taxpayer but stated that there are still outstanding issues from previous periods that need to be resolved through ongoing negotiations. These issues likely stem from the time when Temu operated illegally without paying taxes in the country. Negotiations are ongoing to determine additional tax charges for this period of unauthorized activities.
Kamronbek Mukhamadiev, head of the e-commerce department at NAPP, emphasized that Temu must pay VAT for the period before their legal entity registration and integrate with the Tax Committee’s information systems for transaction fiscalization. The blockade on Temu will only be lifted once all requirements are met and coordinated with the relevant authorities.
Last week, it was reported that Wildberries paid nearly $4 million in additional taxes for non-compliance with legal requirements, prompting the Tax Committee to audit their local subsidiary. Temu, on the other hand, faces a ban for failing to adapt to the new regulations introduced in Uzbekistan for e-commerce platforms operating with Uzbek users.
Starting from December 28, 2024, international platforms are required to register as legal entities in Uzbekistan. Temu’s lack of compliance with these regulations and their failure to register as a legal entity has led to warnings of a potential ban from NAPP. Access to the platform was set to be restricted from March 20, 2025, urging users to refrain from placing new orders and return any existing ones.
