Value Added Tax (VAT)

VAT is an indirect tax on consumption charged on value added to taxable supplies at different stages in the chain of distribution. In Uganda, VAT is imposed on the supply of goods and services (taxable supplies) made by a taxable person, other than exempt supplies; and imports other than exempt imports.

 

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This is a taxpayer with a business that makes total sales above Ugx 150,000,000 in a given year and deals in taxable supplies.

If you run any business in this category and are not yet registered, you’re advised to register for VAT.

Click here to register for VAT

These could include supermarkets, hardware outlets, general merchandise shops, distributors and agents, electronics and electrical appliances, provided they qualify in turnover.

  • Register for EFRIS
  • Charge and collect VAT on taxable supplies by issuing an e-invoice
  • File a VAT return within 15 days after the end of the month
  • Maintain proper business records
  • Avoid making false, reckless and misleading statements
  • Pay VAT due as assessed in the return within 15 days after the end of the month

The filing and payment due date for VAT all fall in the same date.

  • You’re in position to supply established institutions and/or government which leads to more profits and business growth
  • You avoid inconveniences arising from unfair assessments

Yes. You must register for EFRIS if you operate a business in this category Section 73 A (2).

Click here for information on how to register for EFRIS

You are required to file returns if you operate a business in this category

Click here for information on how to file your returns.

After filing a return, you’re required to pay the resultant tax using any of the available payment platforms e.g. banks, mobile money, EFT, RTGS, VISA, Mastercard, USSD code (*285#) etc.

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

Click here to register a payment

You qualify for a refund if your input VAT (VAT on purchases) exceeds your output VAT (VAT on sales) by more than Ugx 5,000,000. And when your input VAT is supported by e-invoices.

This can be done as you are filing your VAT monthly return, by selecting cash refund, if your input VAT exceeds your output VAT by Ugx 5,000,000 and above.

Yes. There are incentives available for you which include:

Tax incentives under Domestic Taxes

VAT ACT

Beneficiary

Incentives

Period of Incentive

Conditions for the Tax incentive

VAT Registered taxpayers

VAT registered persons claim all the VAT incurred if it is supported by e-invoices.

Indefinite

Turnover of UGX 150m in any 12-month period for first time registration, ability to keep proper books of accounts and making taxable supplies.

Contractors executing aid funded projects

Deemed VAT: Tax payable on a taxable supply made by a supplier to a contractor executing an aid funded project or mining project is deemed to have been paid by government and exclusively for the aid funded project.

Duration of the project

Contractors executing aid- funded projects

Exporters

Zero rating

Indefinite

All exporters

Suppliers to government

Cash basis accounting for VAT on supplies made to government

Indefinite

VAT registered suppliers

Suppliers of oxygen for medical use

Exempting the supply of oxygen

Indefinite

Oxygen for medical use

Suppliers of assistive devices for persons with disability

Exempting the supply of assistive devices for persons with disability.

Indefinite

Assistive devices must be for use by persons with disability

Suppliers of educational materials

Zero rating of supply of educational materials.

Indefinite

Includes educational materials manufactured in Uganda and the partner states of the EAC

Suppliers and manufacturers of menstrual cups

Zero rating the supply of menstrual cups and inputs for their manufacture.

Indefinite

Suppliers and manufacturers of menstrual cups

 

For more information, please contact any of our offices for assistance on toll free numbers; 0800117000/0800217000 or WhatsApp: 0772 140000

 

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