Threshold For Vat Registration In Uganda
A value added tax (VAT) is a tax that is collected at each stage in the production and distribution of goods and services, as value to the goods is added. As a business adds value to a product (for example, packaging a product) the business must pay VAT on the added value (the value of the packaging).
Value-added tax (VAT) VAT is governed by the VAT Act and administered by the Uganda Revenue Authority (URA). VAT is charged at the rate of 18% on the supply of most goods and services in the course of business in Uganda. Specified goods and services, as well as exports outside of Uganda, attract a zero rate of tax
Threshold For Vat Registration In Uganda Process In Uganda
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.
Requirements For Threshold For Vat Registration In Uganda
Internet connection
Computer with MS Excel installed
Printer
TIN (Register if you don’t have one).
Who Qualifies To Register Threshold For Vat Registration In Uganda?
According to Uganda revenue authority website, anyone who falls under the below automatically qualifies to register. They include the following below. Please note that in here, we refer to a person as; An individual, a company, partnership, trust, Government and any public or local authority.
A person who carries on business activities or intending to carry on business activities is required to apply to be registered for VAT, if the turnover of taxable supplies of the enterprise for three consecutive calendar months exceeds or is likely to exceed Shs12.5 million. The annual registration threshold is 50 million shillings.
A person being a national, regional, local or public authority or body which carries on business activities or intending to carry on business activities is required to apply to be registered for VAT regardless of the turnover.
Cost For Threshold For Vat Registration In Uganda
The annual threshold for VAT registration is UGX 150 million. 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.
Obligations After Threshold For Vat Registration In Uganda
Charge and collect VAT on supplies by issuing a Tax Invoice. Currently this all VAT registered taxpayers are required to enrol for the Electronic Fiscal Receipting and Invoicing Solution – EFRIS and issue invoices and receipts online
File a VAT return within 15 days after the end of the month
Pay VAT due as assessed in one’s return within 15 days after the end of the month. Currently, when the return is filed, the payslip is automatically generated
Maintain Proper Records
Avoid making reckless, false and misleading statements
Benefits Of Threshold For Vat Registration In Uganda
Being in a position to supply large and or credible business which leads to more profits and growth
Avoiding inconveniences arising from unfair assessments
Avoiding offences related to VAT registration, return filing and failure to pay
Penalties related to VAT
Offence; Failure to apply for registration, cancel a registration or notify the Commissioner of a change in registration or circumstances
Penalty: A fine not exceeding Shs. 3,000,000 or imprisonment not exceeding six years or both on conviction if the failure/act was done knowingly or recklessly; A fine not exceeding Shs. 1,000,000 or imprisonment not exceeding two years or both on conviction in any other case; A person who fails to apply for registration when required to do so is liable to pay a penal tax equal to double the amount of tax payable during the period they remain unregistered.
Offence; Failure to furnish a return by the due date
Penalty: A fine not exceeding Shs. 2,000,000 or imprisonment not exceeding six years or both on conviction A person who fails to lodge a return within the required time is liable to pay a penal tax amounting to whichever is the greater of Shs. 200,000; or interest at 2% per month, compounded for the period the return is outstanding.
Offence; Knowingly or recklessly failing to maintain proper records
Penalty: A fine not exceeding Shs. 2,000,000 or imprisonment not exceeding six years or both on conviction.
Offence; Failure to pay tax before or on the due date.
Penalty: Penal tax on unpaid tax at a rate of 2%, compounded