Skip to content
A woman carries a water container on her back while walking through a lush green field under a clear sky
Standard VAT/GST rate
18%
Reporting currency
UGX
Administered by
Uganda Revenue Authority

International VAT Guide – Uganda

VAT rates in Uganda 

How much is VAT in Uganda? 

The Standard VAT Rate in Uganda is 18%. 

There are no VAT-reduced rates in Uganda. 

Some supplies are exempt from VAT. In this group of VAT-exempted sales, we can find the supply of petroleum fuels, social welfare services, educational services, and passenger transportation services.

Uganda VAT RateRate TypeCoverage and imposition
18%Standard RateThis applies to all taxable supplies in the country besides those that can benefit from being zero-rated or VAT-exempted
0%Zero RateExports; Supply of medicines and drugs manufactured in the country; Supply of home-grown cereals

The exact list of taxable transactions and allocated Uganda VAT rate can be found in VAT Uganda regulations. 

VAT threshold in Uganda 

A person who carries out economic activity or intends to carry one is required to register for VAT if the taxable turnover for three consecutive calendar months is above UGX 37.5 million. The annual VAT threshold in Uganda is UGX 150 million.

The VAT Act, Tax Procedures Code, and implementing regulations are the foundations of indirect taxation in Uganda. This legislation is essential for establishing the VAT Uganda regulatory landscape. 

VAT registration threshold for resident businesses: Annual threshold of UGX 150 million

VAT registration threshold for non-resident businesses: In most cases, there is no registration threshold for foreign companies with a permanent establishment in the country. 

VAT registration threshold for foreign providers of digital services: No threshold

VAT Taxable Activities in Uganda

Before discussing what types of business activities are taxable according to the VAT Act, let’s summarize who can be treated as a taxable person under VAT rules. A taxable person is a person who is registered for VAT or who should be registered for VAT. 

Types of taxable activities that mandate the VAT registration:

  • Supply of goods for consideration;
  • Sales from vending machines; 
  • Exports; 
  • Imports; 
  • Supply of digital services. 

The above-indicated categories of taxable activities are determined in general terms. For other connected forms of taxable activities where the economic operator is obliged to impose Uganda VAT, the concerned supplier should evaluate domestic regulations in more detail. 

Tax Representative in Uganda 

The necessity to acquire the services of the fiscal representative varies depending on the type of registration the foreign provider should follow. 

Tax registration 

Standard Registration 

As mentioned, the person surpassing the quarterly or annual registration threshold should submit the registration application to the respective tax authority. Registration can be done online or in the tax office. 

The interested person can also submit a request for voluntary registration.

Simplified tax registration 

Foreign providers of digital services should register for Uganda VAT if they exceed the stipulated registration threshold. The Uganda Revenue Authority has established a simplified online registration procedure to make the registration procedure less challenging for non-resident service providers.

VAT on Electronically Supplied Services in Uganda 

Digital Services

Foreign providers of electronically supplied services should register for VAT in Uganda and charge an adequate VAT rate for their supplies. 

How much is VAT in Uganda for Electronically Supplied Services?

VAT rate Uganda: A standard VAT rate of 18% is applied in most cases on sales of Electronically Supplied Services in Uganda

Example of taxable ESS in Uganda ↓
Supply of digital products, such as software, connected changes, and updates of the software
Services that can be downloaded through the internet and saved on computer and/or mobile devices
Supply of music, films, and games, including games of chance and gambling games Services that are ordered online but delivered in a physical location (e.g., short-term accommodation, rental of transport services). For example, the services are supplied through the online digital platforms set up by the foreign entity and used at a physical location in Uganda.
Supply of distance learning 
Access or download of music to a physical device
Access or downloading of images, jingles, films, ringtones, and other audio output 

Digital Services Tax 


Following the global trend of introducing direct taxes based on the income that non-resident digital service providers make from sources within the destination country, Uganda has imposed a Digital Services Tax from July 2023. 

Digital Services Tax is a type of direct income tax imposed on the income foreign providers of electronic services(digital suppliers or platforms) make from their supplies to local customers. 

Gross revenue tax in Uganda is 5% of the annual income these providers make. 

Service providers that are in the scope of this income-based tax should register for DST, submit quarterly-based returns, and make the respective payments. This type of return and related tax payment shouldn’t be mixed with the VAT return that non-resident providers of digital services should submit. 

Invoicing Rules

The Uganda Revenue Authority is diligently working on digitizing its tax services. The willingness to improve the effectiveness of the tax reporting and monitoring systems is seen in the ranks of digital tax reporting.  

The VAT Act states that all VAT-registered taxpayers are covered by digital reporting based on e-invoicing. Transactions in the scope of the e-invoicing are B2B, B2C, and B2G. The VAT-registered taxpayers should issue an e-invoice or e-receipt for their transactions. They are also obliged to report the transactional data of the accounting documents digitally. 

In most cases, non-resident suppliers of digital services aren’t obliged to issue e-invoices or e-receipts for their B2C transactions; instead, a simplified tax invoice is enough. 

Invoice Requirements in Uganda 

The simplified tax  invoice should contain at least the following: 

General information: 

  • Date of invoice issuance; 
  • Unique invoice number and series.

Seller information:

  • Company name;
  • Full address (head office);
  • Billing address if different from company address;
  •  VAT number.

Customer information:

  • Name; 
  • Full address;
  • VAT number (if applicable);

Fiscal Information:

  • Description and breakdown of the goods or services – quantity, discounts, unit price, excl. VAT;
  • VAT amount; 
  • Invoice Total.

Foreign Currency Invoice in Uganda  

In Uganda, it’s permissible to issue tax invoices in foreign currencies, but the VAT amount on the invoice and sales amount should be converted to local currency. 

VAT Return in Uganda 

Standard Return 

Taxable persons not eligible for the simplified return filing should follow the general VAT and accounting rules regarding tax reporting. Most taxable persons should submit a return on a quarterly reporting basis. 

The return should be submitted by the 15th day following the end of the reporting period, and the payment of owed tax should be handled before submission. 

The submission of the return can be done on paper or electronically.

Simplified Uganda VAT Return 

VAT Return NameQuarterly VAT Return for Non-Resident Service Providers
Filling frequencyQuarterly
Online FillingPossible
Annual ReturnNo
Filing deadline15th following the reporting period
Payment deadlineBefore submission of the return
Payment currencyUGX
LanguageEnglish
Local VAT acronym VAT

Penalties for late reporting and omitted declarations 

If a taxable person makes a late payment, late registration, or erroneous declaration, different types of penalties could be assessed against the non-compliant taxable person. 

Various forms of penalties related to VAT:

Failure to apply for registration – A fine not exceeding UGX 3 million or imprisonment not exceeding six years or both on conviction if the failure to register was done knowingly or recklessly. 

A fine not exceeding UGX 1 million or imprisonment not exceeding two years or both on conviction in any other case. A person who fails to register when required is liable to pay a penal tax equal to double the amount of tax payable during the period they remain unregistered.  

Failure to submit a return in due date – A fine not exceeding UGX 2 million or imprisonment not exceeding six years or both on conviction.  

Failure to pay tax on the due date – Penal tax on unpaid tax at a rate of 2% compounded. 

Need assistance with VAT in Uganda?
We can help!

icon

Dedicated account manager

As our client, you will be assigned to a multilingual account manager who can address all your tax-related inquiries and resolve any issues you may have at any time.

icon-2

Single point of contact

We serve as single point of contact, simplifying the process and ensuring that your VAT compliance is handled efficiently and effectively within single stop.

icon-3

Exclusive customer service

We support our clients, ensure fast response time and always go beyond by offering tailored assistance and individual attention.

icon-4

Certified experts

Our team is combined of more than 40 experts, who can provide wide range of services and are certified members of IVA, AITC and VAT Forum. Currently we have more than 800 clients and knowledge how VAT works in 100 locations.