List Of Exempt Supplies In Uganda
Exempt supply is defined in section 2(47) of GST Act. (47) “Exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply.
Withholding tax Exempted list of goods and Services?
Question: How can I get a list of exempted materials/good and services?
Answer:
Withholding tax is a form income tax and is deducted at source by the person effecting a payment to another.
The person withholding the tax is called the withholding agent and the recipient of the payment after the deducting the tax is the payee.
According to the Second Schedule of the VAT Act Cap 349 some of the exempt supplies are;
Unprocessed foodstuffs
Petroleum fuels (petrol, diesel and paraffin) subject to excise duty
Financial and insurance services
Medical, dental and nursing services
Social welfare services
Educational services
The supply passenger transportation services other than tour and travel operators
Computers, printers and software
The supply of betting, lotteries and games of chance
The supply of goods as part of the transfer of a business as a going concern by one taxable person to another taxable person
The supply of burial and cremation services
The supply of postage stamps
The supply of precious metals and other valuables to the Bank of Uganda for the State Treasury
The supply of unimproved land
The supply by way of lease or letting or immovable property other than
The supply of feeds for poultry and livestock
The supply of veterinary equipment and supplies
The supply of machinery used for processing of agricultural or dairy products
The supply of milk, including milk treated in any way to preserve it
Accordingly the Third Schedule of the VAT Act provides for zero rated supplies,
whereby a zero rated supply is a taxable supply on which the applicable VAT rate is 0% as compared to the standard rate of 18%.
Zero rated supplies include;
Goods and services exported from Uganda (i.e. goods delivered to an address or services consumed outside of Uganda as evidenced by documentary proof acceptable to the Commissioner General).
International transport of goods or passengers by road, rail water or air from a place outside Uganda to another place outside Uganda where the transport or part of the transport is across the territory of Uganda; or from a place outside Uganda to a place in Uganda; or from a place in Uganda to a place outside Uganda.
Drugs and medicines
Educational materials
Seeds, fertilizers, pesticides and hoes
Cereals grown, milled or produced in Uganda
What are exemption goods?
Non-GST goods include fish, egg, fresh milk, etc. Grapes, melons, ginger, garlic, unroasted coffee beans, green tea leaves that are not processed, and more. Food items that are not put into branded containers like rice, hulled cereal grains, wheat, corn, etc. Components like human blood.
Are medical supplies VAT exempt in Uganda?
Some supplies are exempt from VAT, the main categories being services to conduct feasibility studies, locally produced raw materials subject to investment thresholds and industry, liquefied petroleum gas, financial services, health and life insurance, agriculture insurance policies, re-insurance services, unimproved.
Which goods does Uganda Revenue Authority exempt from taxation?
Since the economic situation started biting hard with the value of money declining and buying fewer items, many have been forced to adjust their budgets while others have decided to take to the streets in protest. Others have demanded for government to cut taxes and exempt some goods from taxes but it is important to understand what tax exemptions are and how they arise.
Tax exemptions are provided for under section 21 of the Income Tax Act, the Value Added Tax Act and the East African Customs Management Act (EACMA).
According to the VAT Act, a supply of goods or services is exempt if it is specified in the second schedule of the same Act.
A taxable supply is a supply of goods or services, other than an exempt supply, made by a taxable person for consideration as part of his or her business activities.
For a supply to be considered taxable, it must not be listed among the exempt supplies listed in the Second Schedule of the VAT Act. This taxable supply has to be made by a taxable person who is supplying to get a consideration (make a profit from it).
The VAT Act (Section 20) defines an exempt import if the goods being imported are exempt from customs duty as stated in the Fifth Schedule of the 2004 East African Community Customs Management Act or would be exempt had they been supplied in Uganda.
The list of exempt supplies under the second schedule of the VAT Act is on the URA website (http://ura.go.ug) under the Tax Laws. Some of the exempted supplies include unprocessed foodstuffs, unprocessed agricultural products, postage stamps, supply of financial services, supply of insurance services, unimproved land, education services and supply of social welfare services amongst others.
The other supplies that are exempt include lifejackets, lifesaving gear, headgear and speed governors.