Uganda VAT Calculator

In Uganda, VAT tax is levied at 18%. VAT is a tax on consumption. In UgandaVAT 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.

How Do You Calculate VAT in Uganda?

You can calculate VAT in Uganda by multiplying the product or service sale price by the VAT value currently at a rate of 18%.

So What Is VAT

Value Added Tax (VAT) is an indirect consumer tax paid on products and services whenever value is added at each stage of the supply chain. VAT is calculated as a percentage of the cost of the product. In Uganda the percentage id 18%.

VAT is governed by the VAT Act and administered by the Uganda Revenue Authority (URA). In Uganda, while an 18% VAT tax is levied on products, some specified goods and services, as well as exports outside of Uganda, attract a zero rate of tax.

There are also some supplies that are exempted from VAT. VAT exemptions in Uganda mainly come as government subsidies, unprocessed foodstuffs, financial services, health and life insurance, agriculture insurance policies, re-insurance services, unimproved land, leases and sale of certain residential properties, betting and gaming, education, medical and health services, imported drugs and medicines, social welfare services, pesticides, and petroleum products subject to excise duty.

Zero-rating and VAT.

Zero-rate or Zero-rated supply refers to items subject to a 0% VAT tax on their input supplies – Wikipedia.

Zero rating is preferable to exemption because the VAT on costs incurred in making a zero-rated supply can be recovered while those incurred in making an exempt supply cannot be recovered.

In Uganda, zero-rated supplies include the supply of goods and services exported from Uganda; the supply of drugs and medicines manufactured in Uganda; the supply of seeds, fertilisers, pesticides, and hoes; and the supply of leased aircraft, aircraft engines, spare engines, spare parts for aircraft, and aircraft maintenance equipment.

Requirements for VAT Registration in Uganda

A business wishing to register for VAT collection should meet the annual threshold for VAT registration of Uganda Shillings 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.
• File monthly returns before the 15th day of the month following the reporting month.

Can I Claim VAT Back?

A VAT-registered person making exempt, zero-rated, and standard supplies can recover all the input VAT if the exempt supplies are less than 5% of the total supplies.

You may also claim a portion of your VAT Back if the exempt supplies are more than 5% but less than 95%. If the exempt supplies exceed 95%, the person cannot recover any input VAT.

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