In Karakalpakstan, an entrepreneur was mistakenly charged 216 million soums in VAT
An individual entrepreneur was switched to paying VAT after a calculation based on projected rather than actual turnover, the Business Ombudsman reported. The entrepreneur had worked for only 43 days after registration. During this period, his actual turnover amounted to 216.4 million soums. However, the tax authority recalculated the figure taking into account the number of days remaining until the end of the year. As a result, the turnover formally exceeded the established [...]
In Karakalpakstan, an entrepreneur was mistakenly charged 216 million soums in VAT
An individual entrepreneur was switched to paying VAT after a calculation was made based on projected rather than actual turnover. This was reported by the Business Ombudsman.
The entrepreneur had been operating for only 43 days after registration. During this time, his actual turnover amounted to 216.4 million soums. However, the tax authority recalculated this figure taking into account the number of days remaining until the end of the year. As a result, the turnover formally exceeded the established threshold of 1 billion soums.
From January 1, 2026, the entrepreneur was classified as a VAT payer. A notification and a special certificate were sent to his personal account on March 25.
The Business Ombudsman appealed to the Nukus Interdistrict Administrative Court. The court fully satisfied the application and canceled the groundlessly assessed tax. The taxation procedure was brought into line with the entrepreneur's actual turnover.