Taxation on Re-imported Personal Vehicles
If a Ugandan citizen is returning home with a vehicle they have been using abroad for personal purposes, what taxes or duties will be charged upon importation? Is there a tax relief option for returning residents?
Dear Reader,
The East African Community Customs Management Act (EACCMA), 2014 provides an exemption in respect to personal effects including motor vehicle of returning residents. However, the following conditions must be met;
- The returning resident must have owned and used the motor vehicle for at least 12 months and the vehicle should have been registered in the name of the returning resident;
- The returning resident’s stay in the foreign country should not have been interrupted within the 12-month period;
- The motor vehicle is required to be within Uganda not later than 90 days after the return of the resident person.
Please note that a returning resident shall benefit from tax relief on only one motor vehicle.
Lack of Transparency in Customs Valuation
Importers have long requested that URA provide publicly accessible, standardized customs values to enable better planning and budgeting. Why has this not yet been implemented? Could URA publish clear valuation guidelines to improve transparency and reduce disputes at points of entry?
Dear Reader,
URA has a data base for harmonized customs values that are reviewed on a quarterly basis in line with the General Agreement on Tariffs and Trade (GATT) to which Uganda is a signatory.
The values have been published on the URA web portal, www.ura.go.ug and may be accessed by selecting Tax Education, then Customs valuation and then Revised General Goods Database to assist importers make informed decisions.
Please note that these published values are indicative and therefore will not supersede the valuation principle of “price paid or payable.’’
Access to TIN Account (Password Recovery Issues)
What steps should a taxpayer take if they have forgotten their TIN password and no longer have access to the registered email address?
Dear Reader,
If a taxpayer forgets their TIN password and can no longer access their registered email, they should first update the email address on their TIN profile.
To change the email address, the taxpayer must visit the nearest URA office with a valid identification document:
- A National ID for Ugandans, or
- A passport for non-Ugandans.
At the URA office, the taxpayer will need to:
- Fill out a form (DT 1003) and clearly write the new email address.
- Attend a short interview with a registration officer to confirm ownership of the TIN.
Once ownership is confirmed, the officer will start the update process. The taxpayer will receive a phone call on their registered number for verification before the changes are approved.
After the email address is updated, the taxpayer can reset their password through the URA website (www.ura.go.ug). A default password will be sent to the new email address, and it must be changed upon first login.
For non-individual TINs (such as companies), a director or business owner must follow the same process on behalf of the organisation.
Offsetting Tax Liabilities with Withholding Tax Credits
Can taxpayers request URA to offset outstanding tax liabilities using available withholding tax credits or retained funds? What is the procedure for this?
Dear Reader,
A taxpayer may use their Withholding Tax credits to offset their outstanding tax liabilities. To utilize the credits, follow the steps below;
- Login into the TIN portal account,
- Under Payment select Credit Transfer,
- Input the period that has credits,
- Select period you want to transfer to and submit.
The credits will be transferred after approval.
Please note that the above process only applies to transfer of credits for the same tax head.
Government Payment Delays and Tax Obligations.
In cases where government entities delay payments to businesses for extended periods, how does URA factor this into tax compliance requirements?
Dear Reader,
For VAT registered persons, a taxpayer may elect to account for VAT on supplies to government on cash basis. To account for VAT on supplies to Government entities on cash basis, select the category B2G when issuing e-invoices through the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
Thereafter, at the point of filing the return, the taxpayer will be required to adjust the return for invoices where payments have been received.
Taxpayers may also request to pay the outstanding tax in installments.
Utilization of Credit Balances on Tax Ledgers
Why are taxpayers currently experiencing challenges in utilizing credit balances on their tax ledgers following recent system changes?
Dear Reader,
URA has improved the credit transfer process to make it easier and more efficient for taxpayers to use. However, some taxpayers may still experience challenges while using the new system.
If you are facing any difficulties, you are advised to visit the nearest URA Service Centre or the Ledger Reconciliation Section at URA Tower in Nakawa. You can also contact URA through the online portal at touchpoint.ura.go.ug or call the toll-free number 0800217000 for assistance.
Wrong Payment During Passport Processing
A taxpayer mistakenly made a wrong payment during passport processing but later made the correct payment. What is the proper procedure to follow in order to request a refund from URA?
Dear Reader,
Where a taxpayer mistakenly made a wrong payment or an error when processing a passport payment, they may request for a refund through an online application by following the steps below:
- Go to our web portal: ura.go.ug
- At the lower bar, click “Get a refund”
- On the top left corner, click “Payment made to Ministry, department or Agency (MDAs)”
- Click “Click here to apply;”
- Fill in all the mandatory fields.
- Click next and fill in the reason for the refund and your bank details.
- Click next, scan and attach copies of both payments (the correct and the wrong payments made) and a copy of your passport.
- Click submit, and you will receive an acknowledgment receipt.
Print and submit the acknowledgment receipt together with copies of the payment receipts and the passport at the nearest URA office for processing.
EFRIS Compliance Challenges in Retail (Supermarkets)
Some suppliers refuse to provide e-invoices, yet URA requires retailers like supermarkets to comply with EFRIS. This creates unfair competition, especially when retailers who issue proper invoices are undercut by those who don’t. Why doesn’t URA enforce EFRIS across the entire supply chain to create a level playing field?
Dear Reader,
The first phase of EFRIS roll out mandated all VAT registered taxpayers to use EFRIS effective 01st January 2021.
In the second phase of roll out, non-VAT registered taxpayers in 12 gazetted sectors were added to the list of taxpayers mandated to use EFRIS effective 01st July 2025. The sectors are:
- Wholesale and Retail of Fuel.
- Mining and Quarrying.
- Electricity, gas, steam and air conditioning supply.
- Water supply; sewerage, waste management and remediation activities.
- Transportation and storage.
- Accommodation and food service activities.
- Information, Technology and communication.
- Real estate activities
- Professional, scientific and technical activities
- Arts, entertainment and recreation.
If a person who is required to issue EFRIS invoices fails to do so, they are subject to a penal tax double the tax payable on the goods or services.
In the event of non-compliance, kindly report via our toll-free Whistleblower number 0800257700 or our web portal www.ura.go.ug. Your information will be treated with confidentiality, and those found guilty will be prosecuted.
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