Abstract
Article information: This study analyzes the specificity of value-added tax (VAT) accounting based on tax legislation of the Republic of Uzbekistan due to implementation of digital tax administration reforms and transition to international financial reporting standards. Background: While extensive legislative changes have occurred (e.g. electronic invoices, automated risk analysis and the integration of ICT tools into tax administration), little is known about the real impact of such legislative changes on accurate, transparent, and efficient compliance with VAT. The abstract describes the use of economic analysis, logical reasoning, grouping, and comparative evaluation methods based on statistical data of electronic invoices and VAT turnover for 2018–2024, an assessment of VAT automation in the “1C: Accounting 8.3” software environment. Results show that electronic invoice common use growth rate and VAT turnover growth confirm the effectiveness of digitalization as both strengthen tax control and cultivate reporting discipline. Another additional result is that the automatic calculation of VAT and the constant monitoring of incurring risks reduce mistakes, minimize tax evasion, and improve the revenue administration of budget revenues, even though the adjustment of the rates itself has a direct impact on the total VAT collections. We conclude that the transition from analog to digital-based VAT accounting advances fiscal transparency and administrative efficiency, and we suggest that the iterative improvement of automated, risk-based controls and more congruence with accounting and tax reporting first-order and second-order standards will contribute to a further enhancement of sustainable tax governance motilities in Uzbekistan.