Voluntary Vat Registration In Uganda
Businesses who are not required to mandatorily register under VAT, are given an option to voluntarily apply for VAT registration. They can voluntarily register if the annual supplies or the taxable expenses incurred are not less than the voluntary registration threshold limit.
Requirements For Voluntary Vat Registration In Uganda
Internet connection
Computer with MS Excel installed
Printer
TIN (Register if you don’t have one).
Process For Voluntary Vat Registration In Uganda
Log on to your state VAT website and click on the registration tab. Add information and attach documents as request for your company. You may be allocated a temporary VAT registration number. Once the verification is done you will be allocated your Permanent VAT registration number.
Without an active TIN number – Begin by downloading TIN and VAT application forms i.e DT1001 and DT1011. Upload back the forms and as well take the hard signed copies to any nearest URA branch office. Your application will be evaluated and approved, you will be issued both at once.
With working TIN Number – Begin by logging into your TIN using your account credentials and follow the below procedures.
Click E-Registration under e-Services.
Click on E-Registration Amendment for Non-Individual.
Checkbox for VAT – NEW registration.
Fill in all required details and click Submit.
Once you submit the form successfully, a new page with acknowledgment details will show up, and which you should print out. That is all, you can take your printed acknowledgment paper to any URA branch office and see what next. Your VAT registration will apply.
Applying For Voluntary Vat Registration In Uganda
Go to www.ura.go.ug and log in to your account with your TIN and password.
Under Application Details,Select Application type from the drop down.
Enter your Tax payer Identification Number (TIN)
Select period of exemption from the drop down menu.
Purpose For Voluntary Vat Registration In Uganda
VAT registered businesses add VAT to their sales invoices and can reclaim any VAT included in the items they have bought. If you are not VAT registered you still have to pay the VAT on your purchases but are unable to reclaim it.
Cost For Voluntary Vat Registration In Uganda
The annual threshold for VAT registration is UGX 150 million.
The standard rate of VAT is 20%. Certain items are charged at lower rates, for example children’s clothing is charged at the rate of 0% whereas household fuel, for example gas and electricity is charged at the reduced rate of 5%.
Period For Voluntary Vat Registration In Uganda
You should get a VAT registration certificate within 30 working days, though it can take longer.
After Voluntary Vat Registration In Uganda
Once your business is registered for VAT, then it has to charge VAT on all the taxable sales it makes to its customers. The VAT you charge to your customers is called ‘output VAT’. You can use our VAT calculator to work out how much output VAT you should charge.
If you work in retail, for example, and you put a price tag on your goods, then you include the VAT in the price of the product. When the customer buys the product, they pay for the cost of their goods and the VAT.
Advantages For Voluntary Vat Registration In Uganda
With a tax based on consumption rather than another variable, VAT provides a stable revenue source as a consistent tax. Another popular form of taxation is income tax, which varies based on an individual’s personal income. However, a VAT system implements a similar tax percentage on various items.
Disadvantages For Voluntary Vat Registration In Uganda
Some of your suppliers may not be VAT Registered, so you’re unable to claim back the VAT on purchases from them.
You may find that you’re left with a large VAT bill if you regularly generate more VAT than what you’re able to reclaim.
Work For Voluntary Vat Registration In Uganda
Value-Added Tax, or VAT, is a tax imposed on goods and services. It’s a consumption tax similar to a sales tax, but instead of being collected at the final sale and charged entirely to the customer, it’s levied along the way.
You do not have to have a turnover in excess of the VAT threshold to register for VAT as anyone can apply on a voluntary basis. If you would like to voluntarily apply to VAT it may be worth remembering that if you are self-employed, it will be you as an individual who will be registered for VAT and not your business.
Failing to register for VAT with when you should have done means that you’ll face penalties. The fine is worked out based on how much VAT you owe as well as how late you were registering. The VAT that you owe from the point of registration will be added to your penalty, to being late can get expensive!
Office Location For Voluntary Vat Registration In Uganda
Head Office
| Head office Address | : | Plot M193/M194, Nakawa Industrial Area, P.O.Box 7279, Kampala, Uganda |
| Contact Number | : | (256) 800117000 |