Overview of Wholesale and Retail

What is wholesale trade?

Wholesale trade is the buying of goods in large quantities usually from manufacturers or distributors and selling them to the retailer in relatively smaller quantities.

Wholesalers sometimes sell goods directly to final consumers in small quantities.

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Retail trade is the buying of goods from wholesalers or distributors and selling them to final consumers in small quantities.

In the wholesale and retail sector, there are two categories of taxpayers.

  • Small Business taxpayers with total annual sales that don’t exceed Ugx 150,000,000
  • VAT registered taxpayers with total annual sales above Ugx 150,000,000

All businesses in Uganda are required to be registered with

  • Uganda Registration Services Bureau (URSB) for business name
  • Uganda Revenue Authority (URA) for taxes i.e. acquiring a TIN
  • Local council authority e.g. KCCA, municipal council, for a trading license

Please note:

You will NOT be issued with a trading license unless you have a TIN

Click here for details on requirements for registration of your wholesale/retail business

  • You’re required to visit the URA portal on ura.go.ug
  • Click here to register as an individual
  • Click here to register as a non-individual

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

Click here for your rights and 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
  • Asset registers
  • Debtors and Creditors

Please note Clients who are VAT registered must issue e-Invoices through the EFRIS platform

Click here to learn more about EFRIS

Click here to Download Wholesale and Retail Sector Guide
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