How To Register For VAT In Uganda

What Is VAT?

A value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer.

How To Value Added Tax In Uganda Highlights?

There have been amendments to the Value Added Tax Act, Cap 349 (VATA), over the last six months.We have also observed subtle changes in the way the Uganda Revenue Authority is enforcing the VATA following widespread VAT fraud reported in the press as follows.

How Do I Register For VAT With URA?

  2. Go to and log in to your account with your TIN and password.
  3. Under Application Details,Select Application type from the drop down.
  4. Enter your Tax payer Identification Number (TIN)
  5. Select period of exemption from the drop down menu.

Can An Individual Register For VAT?

Vendors can be individuals, trust funds, partnerships, businesses, organisations, foreign donor funds or municipalities. You must register for VAT within 21 days of exceeding R1 million. Your business is eligible for voluntary VAT registration when you exceed Ugx 1777466.50 over the same period of 12 months.

How Do I Calculate VAT Inclusive?

VAT-inclusive prices

To work out a price including the standard rate of VAT (20%), multiply the price excluding VAT by 1.2. To work out a price including the reduced rate of VAT (5%), multiply the price excluding VAT by 1.05.

What Are The Types Of VAT?

There are three categories of supplies that can be made by a VAT vendor: standard-rated, zero-rated and exempt supplies.

How Do I Register My New Business For VAT?

  1. Creation of e-Service Account.
  2. Login to your e-Service Account.
  3. VAT Registration Form: The online VAT registration form contains 8 sections as shown below, in under which the details need to be furnished for completing VAT registration. About the applicant. Details of the applicant.

Registration For VAT In Uganda?

The standard rate for taxable supplies in Uganda is 18%.  The revenue threshold to attain to be registered for VAT in Uganda is a turnover of UShs 37.5 million per quarter or UShs 150 million turnover per annum – Section 7 VAT Act Cap 349 (“VATA”). In practice, the applicant will be required to demonstrate that he is making taxable supplies at the time of registration.  Depending on the circumstances, the tax authority may sometimes not rely on forecasts.

How To Export Of Service VAT In Uganda?

A service would only qualify as an export if the supplier can provide evidence showing that the service is consumed outside Uganda.  In practice, the contract with the foreign purchaser shall clearly specify the place or use or consumption of the service to be outside Uganda.  

How To Refund Of Overpaid Tax VAT In Uganda?

Section 42 (1) states that if for any tax period, a taxable person’s input tax exceeds his or her liability for tax for that period, the Commissioner General shall refund him or her the excess within one month of the due date for the return for the tax period to which the excess relates, or within one month of the date when the return was made if the return was not made by the due date.In practice, the tax authority conducts an audit of the tax payer’s records before processing the refund.  The tax payer’s records need to be arranged prior to the audit to ensure a smooth audit process.

How To Deemed VAT?

An aid-funded project is one whose execution is funded by a foreign government or a development agency like DANIDA, USAID, DFID etc. through loans, grants and donations.The tax payable by supplier to a contractor executing an aid-funded project is deemed to have been paid by the contractor provided it is for use by the contractor strictly for the execution of the aid funded project – Section 24 (6) of the VATASimilarly, the tax payable on a taxable supply made to a Government ministry, department or agency by a contractor executing an aid – funded project is deemed to have been paid by that ministry, department or agency as long as it is solely and exclusively for use in the execution of the aid-funded project – Section 24 (7) of the VATA.Contractors are advised to seek private rulings/advance tax rulings to ensure that the transactions they enter are done so with certainty of the VAT implications under the above arrangements.

Increasing The Period Prior To Date Of Registration For Which Input Tax Can Be Claimed

Section 28(3) (b) was amended by inserting the words “or in case of manufacturers, not more than twelve months before the date of registration”Previously paragraph (b) stated that “all imports of goods, including capital assets, made by the person prior to becoming registered, where the supply or import was for use in the business of the taxable person, provided the goods are on hand at the date of registration and provided that the supply or import occurred not more than six months prior to the date of registration.”This implies that the window to claim input tax prior to the date of VAT registration has been extended from 6 months to 12 months for manufacturers.

How To Input Tax Credit Claimable In Relation To A Commercial Building?

Section 28 has been amended by inserting immediately after subsection (4) the following.An owner of more than one commercial building shall account for tax for each commercial building separately and shall not claim tax credits on inputs used in the construction of an incomplete building against the tax collected from a completed commercial building.This implies that taxpayers will have to properly allocate the input tax incurred on each one of their buildings.

How To Fiscal Receipts VAT In Uganda?

E-invoicing has been introduced by the URA.A taxable person who is allowed a tax credit on purchase of goods and services from a supplier who is designated to use the e-invoicing system, shall only claim a tax credit on expenses supported by e- invoices or e-receipts. ”It is vital that all tax payers ensure that they are currently running and have set up the e-invoice functionality on the URA web portal.  They should also ensure that their suppliers issue them with e-invoices from the URA web portal.

Who Qualifies For VAT Registration In Uganda?

Persons who make supplies that are Vatable and whose turnover exceeds UGX 150 million are required to register for VAT with the URA. VAT-registered persons are required to: Charge VAT whenever they make supplies that are Vatable. File monthly returns before the 15th day of the month following the reporting month.

What Are The Requirements To Register For VAT?

You must register your business for Value Added Tax (VAT) if the total value of taxable goods or services is more than Ugx 1 million in a 12-month period, or is expected to exceed this amount. A business may also register voluntarily if the income earned in the past 12-month period exceeded Ugx 1777466.50.