Agri-Input Dealers

Agricultural inputs are any external source put into soil that can help a farmer’s upcoming yield. They can be anything from high-quality seeds to high-tech tractors. they are divided into consumable inputs and capital inputs. Consumable inputs are your everyday commonly used agricultural inputs for smallholder farmers – high quality seeds, fertilizers, insecticides, pesticides, straws, hay, insect traps, water, etc. Capital inputs are agri-inputs that are often mechanical and more technologically advanced such as tractors, Nylon netting, stakes, plows, irrigation systems and trellising materials, etc.

 

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Agro-input dealers are small, often independent stockiest or distributors of agricultural inputs, such as pesticides. An agro dealer is an entrepreneur who sells, supply Agriculture inputs such as seed, fertilizer, stock remedies, agrochemicals, animal feed and other services needed closer to farmers

An Agri Service Input Dealer is responsible for making agri and allied inputs available to the farmer in the right season and provide advice to farmers on good farming practices such as integrated farming, integrated pest management, cattle feeding and rearing, and other related techniques.

All farmers in Uganda who earn incomes from their farming ventures are required to be registered with;

  • Uganda Registration Services Bureau (URSB) for Company registration or a Certificate of registration if you’re an individual.
  • Uganda Revenue Authority (URA) for taxes

Please note:

Upon registration, the farmer is required to comply with the requirements of statutory bodies like

  • Ministry of Agriculture, Animal industry and Fisheries
  • Uganda National Farmers Federation (UNFFE)

For individual

  • National ID or any other two of the following valid identification documents;  Passport, Driving permit, Voter’s card, Village ID, Employment ID, Refugee ID, recent Bank statement, Work permit, financial card, Visa, NSSF card etc.
  • Certificate of registration (incase you are in business)
  • Statement of particulars and partnership deeds (incase of a partnership)

For non-individual

  • Company Form 20
  • Certificate of incorporation

Click here for details on requirements for registration

As a taxpayer, you’re entitled to your rights. Equally, there are obligations that you must fulfill.

Click here for your rights as a taxpayer

Click here for your  obligations as a taxpayer

You need to keep records relating to all transactions in your business. It is important to always have records that are dated so that you can understand which reports relate to what period. These include;

  • Income statement records
  • Receipt and invoice records
  • Payment vouchers
  • Import schedules in case you’re an importer
  • Contracts executed
  • Bank statements
  • Appointment letters for your employees and proof of payment of their salaries
  • Utility bills
  • Stock records
  • Debtors and Creditors

  • Keep proper records of all business transactions in the English language.
  • If you wish to keep records in a different language, apply in writing with clear reasons to the commissioner for permission.
  • Where a record is not in English, you will be required to meet the cost of translation into English by a translator approved by the Commissioner.
  • Keep records such that it is easy to determine your tax liability;
  • Keep records for five years after the end of the tax period to which they relate for future reference.
  • You are required to maintain business records for at least five (5) years at any one time
  • The records kept should contain sufficient transaction information and should be saved in a format that is capable of being recovered and converted to a standard understandable.

Any person dealing in commercial agriculture business is required to register for income tax. Income tax applies generally to all types of persons who derive income, whether an individual, non-individual or partnership.

 

Corporation tax

This is tax imposed on all companies in Uganda at a standard rate of 30%. An agri-input dealer must register for this tax if it operates as a company.

Income tax

This is a tax imposed on individuals in the sector using the individual rates applicable.

Click here for more information on income tax rates.

Pay As You Earn (PAYE) – paid by employees in this sector who earn above UGX 235,000 per month. The employer withholds on the employee’s salary and remits it to URA.

Click here for PAYE rates

Withholding tax – will be paid by an agri-input dealer in case of supply of goods to a designated withholding agent when the invoice value is above UGX 1,000,000

Click here for information on how to file your returns.

After filing a return, you’re required to pay taxes due using available payment platforms e.g. banks, mobile money, VISA, Mastercard etc.

Please note: the due date for payment of tax is the same as that of return filing.

Click here to register a payment

 

Description

Tax incentive

Agricultural sprayers

  • VAT Exempted when imported by dealers under the VAT Act.
  • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Agricultural–Chemicals (fungicides and pesticides)

  • VAT Exempted when imported by dealers under the VAT Act.
  • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Packing material of any kind designed for packaging goods for export

  • Exempted from all taxes when imported with an intention of packaging goods meant for export, 2004.

Ploughs, Harrows, seeders, planters and transplants, manure spreaders and fertilizer distributors

  • VAT Exempted when imported by dealers under the VAT Act.
  • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Fertilizers

A fertilizer is any material of natural or synthetic origin (other than liming materials) that is applied to soils or to plant tissues (usually leaves) to supply one or more plant nutrients essential to the growth of plants

  • Exempted from all taxes under the 5th Schedule of the East African Community Customs Management Act, 2004 upon approval by the Ministry of Agriculture, Animal Industry and Fisheries.

Seeds for sowing, spores and cut plants

A seed is an embryonic plant enclosed in a protective outer covering.

  • Exempted from all taxes under fifth schedule of the East African Community Customs Management Act, 2004 upon approval by Ministry of Agriculture Animal Industry and Fisheries.

Veterinary Chemicals (Acaricides)

  • VAT Exempted when imported by dealers under the VAT Act.
  • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Feeds for livestock

  • VAT Exempted when imported by dealers under the VAT Act.
  • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

 

 

For more information, visit the nearest URA office for assistance or call the toll-free lines 0800117000/0800217000 or WhatsApp: 0772140000

Click to download Agricultural Sector Guide
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