Chinese e-commerce giant Temu faces tax penalties in Uzbekistan

Authorities say Temu failed to pay $3.6 million in taxes, leading to regulatory restrictions on its operations.

TASHKENT, Uzbekistan (MNTV) — Chinese online marketplace Temu has been accused of failing to pay approximately 46 billion soums ($3.6 million) in taxes in Uzbekistan.

The announcement was made during a press conference by Mubin Mirzayev, first deputy chairperson of the Tax Committee.

According to Gazeta.uz, Mirzayev highlighted the ongoing challenges of taxing e-commerce businesses and noted that a review of online trade revealed widespread tax evasion among digital marketplaces operating in the country.

“Previously, in addition to Temu, the marketplace Wildberries also failed to pay taxes. We issued notifications to all platforms, reminding them of their legal obligations. Wildberries subsequently paid 52 billion soums ($4 million) and resumed operations without further issues,” Mirzayev stated.

The tax assessment for Temu is based on preliminary calculations, and an official audit has yet to be conducted, he clarified.

However, authorities have already notified the company of its pending tax liabilities.

Temu’s operations were restricted on March 20 after the National Agency for Advanced Projects (NAAP) announced that the company had failed to comply with e-commerce regulations introduced under Cabinet of Ministers Resolution No. 885.

These rules require online marketplaces to establish a legal entity in Uzbekistan and register for tax purposes.

Kamronbek Mukhammadiev, head of e-commerce at NAAP, told Gazeta.uz that while Temu registered as a legal entity on March 14, it must also pay outstanding value-added tax (VAT) and integrate with the national tax system to resume operations. 

Uzbek authorities have stated that once Temu meets its tax obligations, regulatory restrictions will be lifted, allowing it to operate legally in the country.