The Value Added Tax Act Cap

LIST OF THE REGULATIONS MADE UNDER THE VALUE ADDED
TAX ACT CAP. 349

1. The Value Added Tax Regulations, S.I. 349 – 1, plus the amendment as
below;
(a) The Value Added Tax (Amendment) Regulation, 2003, S.I. No. 80 of
2003;
(b) The Value Added Tax (Amendment) Regulation, 2007, S.I. No. 26 of
2007;
(c) The Value Added Tax (Amendment) Regulation, 20011, S.I. No. 29 of
2011;
2. The Value Added Tax (Rate of Tax) Order, 2005, S.I. No. 51 of 2005.
3. The Value Added Tax (Rate of Tax) Order, 2006, S.I. No. 29 of 2006.
4. The Value Added Tax (Rate of Tax) (Revocation) Order, S.I. No. 30 of
2009.
5. The Value Added Tax (Deferment of Tax on Plant and Machinery)
Regulations, 2013, S.I. No. 28 of 2013.
6. The Value Added Tax (Tax Withholding) Regulations, 2018, S.I. No. 35
of 2018.
7. The Value Added Tax (Tax Withholding) Notice, 2018, Notice. 12 of
2018.
8. The Value Added Tax (Designation of Tax Withholding Agents)
(Revocation) Notice, 2018, Notice. 19 of 2018.
9. The Value Added Tax (Designation of Tax Withholding Agents) Notice,
2018, Notice No.1 of 2020.
VALUE ADDED TAX ACT
Cap. 349, Laws of Uganda, 2000
An Act to provide for the imposition and collection of Value Added Tax, and for other purposes
connected to that tax. Commencement: 1st July 1996
Commencement: 1st July 1996
ARRANGEMENT OF SECTIONS
Section
1. Interpretation
PART I—PRELIMINARY
2. Interpretation of fair market value
3. Interpretation of associate
4. Charge of tax
PART II—CHARGE OF TAX
5. Person liable to pay tax
6. Taxable person
PART III—TAXABLE PERSONS
7. Persons required or permitted to register
8. Registration
9. Cancellation of registration
PART IV—SUPPLIES OF GOODS AND SERVICES
10. Supply of goods
11. Supply of services
12. Mixed supplies
13. Supply by agent
14. Time of supply
15. Place of supply of goods
16. Place of supply of services
17. Imports
PART V—TAXABLE SUPPLIES
18. Taxable supply
19. Exempt supply
20. Exempt import
20A. Exempt import of services
PART VI—TAXABLE VALUE
21. Taxable value of a taxable supply
22. Adjustments
23. Taxable value of an import of goods
PART VII—CALCULATION OF TAX PAYABLE
24. Calculation of tax payable on a taxable transaction
25. Calculation of tax payable by a taxable person for a tax period
26. Cash basis accounting
27. Consequences of a change in accounting basis
28. Credit for input tax
29. Tax invoices
30. Credit and Debit notes
PART VIII—PROCEDURE AND ADMINISTRATION OF TAX
Returns and Assessments
31. Returns
31A. Returns
32. Assessments
33. General provisions relating to assessments
PART VIIIA - OBJECTIONS AND APPEALS

33A. Interpretation
33B. Objections to assessments
33C. Appeals to Tax Appeals Tribunal
33D. Appeals to High Court
33E. Burden of proof
Collection and Recovery of Tax
34. Due date for payment of tax
34A. Due date for payment of tax
35. Tax as a debt to Government
36. Security
37. Preferential claim to assets
38. Seizure of goods
39. Closure of business and distress proceedings
40. Recovery of tax from third parties
41. Duties of receivers
Refund of Tax
42. Refund of overpaid tax
43. Refund of tax for bad debts
44. Interest on overpayments and late refunds
45. Refund of tax to diplomats and diplomatic and consular missions and international
organizations
45A. Refund of tax for use of electronic receipt or invoice
Records and Investigation Powers
46. Repealed
47. Repealed
48. Repealed
49. Repealed
Taxpayer Identification Number
50. Repealed
Offences and Penal Tax
51. Repealed
52. Repealed
53. Repealed
54. Repealed
55. Repealed
56. Repealed
57. Repealed
58. Repealed
59. Repealed
60. Repealed
61. Repealed
62. Repealed
63. Repealed
64. Repealed
65. Penal tax
65A. Interest on unpaid tax
66. Recovery of penal tax
67. Remission of tax
PART IX—GENERAL PROVISIONS

68. Repealed
68A. Repealed
68B. Repealed
68C. Repealed
69. Repealed
70. Repealed
70A. Repealed
71. Application of Act to partnerships and unincorporated associations
72. Trustee
73. Currency conversion
74. Prices quoted to include tax
75. Schemes for obtaining undue tax benefits
76. International agreements
77. Priority of Schedules
78. Regulations and amendment of Schedules
78A. Supremacy of Act
79. Repealed
80. Repealed
81. Repealed
SCHEDULES
First Schedule — Public international organizations

Second Schedule — Exempt supplies
Third Schedule — Zero-rated supplies
Fourth Schedule — Formulae, tax invoices, credit notes & debit notes
Fifth Schedule — Calculation of interest penalty
CHAPTER 349
THE VALUE ADDED TAX ACT
An Act to provide for the imposition and collection of Value Added Tax, and for other purposes
connected to that tax.
Commencement:1st July 1996
PART I—PRELIMINARY
1. Interpretation
In this Act, unless the context otherwise requires—
(a) “application to own use” in relation to goods or services, means applying the goods or
services to personal use, including personal use by a relative, or any other non-business
use;1
(aa) “biodegradable packaging material” means packaging material which can undergo a
breakdown of its entire composition and by naturally existing micro-organisms in the
presence of air and water at specific temperatures into smaller constituent components
within a given time of usually not more than six months;2
(aaa) “citizen” means3—
(i) a natural person who is a citizen of a Partner State of East African Community;
(ii) a company or a body of persons incorporated under the laws of a Partner State of
the East African Community in which at least fifty-one percent of the shares are
held by a person who is a citizen of a Partner State of East African Community;
(b) “Commissioner General” means the Commissioner General of the Uganda Revenue
Authority;
(c) “company” means a body corporate or un-incorporate, whether created or recognized
under a law in force in Uganda or elsewhere, but does not include a partnership or trust;
(d) “consideration”, in relation to a supply of goods or services, means the total amount in
money or kind paid or payable for the supply by any person, directly or indirectly,
including any duties, levies, fees, and charges paid or payable on, or by reason of, the
supply other than tax, reduced by any discounts or rebates allowed and accounted for at
the time of the supply;
(da) “contractor” means a person supplying goods or services other than as an employee to
the following-4
1
Substituted by VAT (Am) Act, 2008
2
Inserted by VAT (Am) Act, 2010; Repealed by VAT (Am) Act, 2021
3
Inserted by VAT (Am) Act, 2019
4
(i) A licensee in respect of mining operations undertaken by the licensee; or
(ii) A licensee in respect of petroleum operations undertaken by the licensee.
(e) “exempt import” has the meaning in Section 20;
(f) “exempt supply” means a supply of goods or services to which Section 19 applies;
(g) “finance lease”, in relation to goods, includes the lease of goods where—
(i) the lease term exceeds seventy-five per cent of the expected life of the goods;
(ii) the lessee has an option to purchase the goods for a fixed or determinable price at
the expiration of the lease; or
(iii) the estimated residual value of the goods to the lessor at the expiration of the lease
term, including the period of any option to renew, is less than 20 per cent of its
fair market value at the commencement of the lease;
(h) “goods” includes all kinds of movable and immovable property, [thermal and electrical
energy, heating, gas, refrigeration, air conditioning and water]5 but does not include
money;
(i) “hire purchase agreement” means an agreement that is a hire purchase agreement in
terms of hire purchase law in Uganda;
(j) “import” means to bring, or to cause to be brought, into Uganda from a foreign country
or place;
(k) “importer”, in relation to an import of goods, includes the person who owns the goods,
or any other person for the time being possessed of or beneficially interested in the
goods and, in relation to goods imported by means of a pipeline, includes the person
who owns the pipeline;
(l) “input tax” means the tax paid or payable in respect of a taxable supply to or an import
of goods or services by a taxable person;
(la) “licensee” means a person granted a mining right or a person with whom the
Government has entered into a petroleum agreement;6
(lb) “mining operations” includes every method or process by which any mineral is won
from the soil or from any substance or constituent of the soil and includes mineral
exploration and development operations undertaken pursuant to a mining lease or
mineral agreement entered into under the Mining Act, 2003;[mining exploration
operations]7
(lc) “petroleum operations” means an authorised operation under a petroleum agreement for
petroleum exploration, development, production and export including, planning, installation,
transportation of petroleum, storage or decommissioning, and for the construction of a
pipeline or petroleum refinery.
(ld) “petroleum agreement” means an agreement entered into by the Government of Uganda
with another person in accordance with the Petroleum (Exploration, Development and
Production) Act, 2013, or the Petroleum (Refinery, Conversion, Transmission and Midstream
Storage) Act, 2013.
5
6
(la)-(ld) Inserted by VAT (Am) Act, 2015
7
(m) “Minister” means the Minister responsible for Finance;
(n) “money” includes—
(i) coins or paper currency that the Bank of Uganda has issued as legal tender;
(ii) coins or paper currency of a foreign country which is used or circulated as
currency;
(iii) a bill of exchange, promissory note, bank draft, postal order, or money order,
other than a coin or paper currency that is a collector’s piece, investment article or
an item of numismatic interest;
(o) “output tax” means the tax chargeable under Section 4 in respect of a taxable supply;
(p) “person” includes an individual8, a partnership, company, trust, government, and any
public or local authority;
(q) “public international organization” means an organization listed in the First Schedule to
this Act;
(r) “reduced consideration has the meaning in Section 18(7);
(s) “relative”, in relation to an individual, includes an ancestor of the individual, a
descendant of the individual’s grandparents, or the spouse of the individual or of any of
the foregoing;
(t) “services” means anything that is not goods or money;
(u) “tax” means the value added tax chargeable under this Act;
(v) “tax fraction” means the fraction calculated in accordance with the formula;
r
r + 100
in which formula “r” is the rate of tax applicable to the taxable supply;
(w) “tax period” means the calendar month;
(x) “taxable person” has the meaning in Section 6;
(y) “taxable supply” has the meaning in Section 18;
(z) “taxable transaction” means a taxable supply or an import of goods or services that is
subject to tax under this Act;
(aa) “taxable value”, in relation to a taxable supply or an import of goods or services
is determined under Part VI of this Act;
(bb) “trust” means any relationship where property is under the control or management
of a trustee;
(cc) “trustee” includes—
(i) an executor, administrator, tutor or curator;
(ii) a liquidator or judicial manager;
(iii) a person having or taking on the administration or control of property subject to
another person having a beneficial interest in the property;
(iv) a person acting in a fiduciary capacity;
(v) a person having possession, control or management of the property of a person
under a legal disability.
8
2. Interpretation of Fair Market Value
(1) For the purposes of this Act, the fair market value of a taxable supply at any date is the
consideration in money which a similar supply would generally fetch if supplied in
similar circumstances at that date in Uganda, being a supply freely offered and made
between persons who are not associates.
(2) Where the fair market value of a taxable supply cannot be determined under subsection
(1), the fair market value of the supply shall be the amount that, in the opinion of the
Commissioner General having regard to all the circumstances of the supply, is the fair
market value of the supply.
(3) In this Section, “similar supply”, in relation to a taxable supply, means a supply that is
identical to, or closely or substantially resembles, the taxable supply, having regard to the
characteristics, quality, quantity supplied, functional components, reputation of, and
materials comprising the goods and services which are the subject of the taxable supply.
3. Interpretation of Associate
(1) For the purposes of this Act, “associate”, in relation to a person, means any other person
who acts or is likely to act in accordance with the directions, requests, suggestions or
wishes of the person whether or not they are communicated to that other person.
(2) Without limiting the generality of subsection (1), the following are treated as an associate
of a person—
(a) a relative;
(b) a partner, an associate of a partner under another application of this Section or a
partnership in which the person is a partner;
(c) the trustee of a trust under which the person, or an associate under another application
of this Section, benefits or is capable of benefiting;
(d) a company in which the person either alone, or together with an associate or
associates under another application of this Section, controls directly or indirectly
fifty per cent or more of the voting power in the company, or which is accustomed or
may reasonably be expected to act in accordance with the directions or wishes of the
person or an associate of the person;
(e) where the person is a partnership, a partner in the partnership, an associate of the
partner under another application of this Section, or another partnership in which the
person or an associate is a partner;
(f) where the person is the trustee of a trust, any other person or an associate of such
other person under another application of this Section who benefits or is capable of
benefiting under the trust; or
(g) where the person is a company, a person who either alone or together with an
associate or associates under another application of this Section controls directly or
indirectly fifty per cent or more of the voting power of the company, or in accordance
with whose directions or wishes the company is accustomed or may reasonably be
expected to act.
PART II—CHARGE OF TAX

4. Charge of Tax
A tax, to be known as a value added tax, shall be charged in accordance with this Act on –
(a) every taxable supply [in Uganda]9 made by a taxable person;
(b) every import of goods other than an exempt import; and
(c) the supply of [any imported services by any person] imported services, other than an
exempt service, by any person.10
5. Person Liable to Pay Tax

(1) Except as otherwise provided in this Act, the tax payable—
(a) in the case of a taxable supply, is to be paid by the taxable person making the supply;
(b) in the case of an import of goods, is to be paid by the importer;
(c) in the case of [an import of services] a supply of imported services, other than an
exempt service, is to be paid by the [recipient of the imported services] person
receiving the supply.11
(2) The Minister shall, by notice in the Gazette, designate a person who shall withhold tax on
a payment for a taxable [supply]12 supplies. [and the persons designated shall remit to the
Uganda Revenue Authority one hundred percent of the tax payable]13.
(2a) A person designated under subsection (2), shall remit to Uganda Revenue Authority, six
percent of the taxable value referred to in sections 2l and 23 of this Act. 14
(2b) Subsection (2a) does not apply to a taxable person who the Commissioner General is
satisfied has regularly complied with the obligations imposed on a taxable person under this
Act.
(2c). The six percent of the taxable value withheld by a person designated under subsection
(2) shall be recognized as a payment in the subsequent value added tax return of the tax payer
from whom the tax is withheld.
(3) A person designated under subsection (2) shall withhold tax where a person is registered
or where a person who is not registered but who is required to be registered, makes a
9
10
11
12
13
14
(2a) – (2c) Inserted by VAT (Am) Act, 2019
supply for an amount equivalent to one quarter of the annual registration threshold under
section 7(2).15
PART III—TAXABLE PERSONS

6. Taxable Person
(1) A person registered under Section 7 is a taxable person from the time the registration takes
effect.
(2) A person who is not registered, but who is required to be registered or to pay tax under this
Act, is a taxable person from the beginning of the tax period immediately following the
period in which the duty to apply for registration or to pay tax arose. 16
7. Persons required or permitted to register

(1) A person who is not already a registered person shall apply to be registered in accordance
with Section 8—
(a) within twenty days of the end of any period of three calendar months if during that
period the person made taxable supplies, the value of which exclusive of any tax
exceeded one quarter of the annual registration threshold set out in subsection (2); or
(b) at the beginning of any period of three calendar months where there are reasonable
grounds to expect that the total value exclusive of any tax of taxable supplies to be
made by the person during that period will exceed one-quarter of the annual
registration threshold set out in subsection (2).
(c) at the beginning of any tax period of more than three calendar months where there are
reasonable grounds to expect that the total value exclusive of any tax of taxable
supplies to be made by the person will exceed the annual threshold set out in
subsection (2). 17
(2) The annual registration threshold is one hundred and fifty million shillings [fifty million
shillings]18.
(3) In determining whether the registration threshold is exceeded for the period specified in
subsection (1), it is to be assumed that the person is a taxable person during that period.
(4) A person supplying goods or services for consideration as part of his or her business
activities, but who is not required by subsection (1) or (5) to apply for registration, may
apply to the Commissioner General to be registered in accordance with Section 8.
15
16
Substituted by VAT (Am) Act 1, 2008
17
18
(4A) Notwithstanding subsection (4), the following persons may apply to the Commissioner
General to be registered in accordance with section 8—
(a) a licensee undertaking mining or petroleum operations;19
(b) a person undertaking the construction of a petroleum refinery or petroleum pipeline;
(c) a person engaged in commercial farming; or
(d) a person undertaking midstream operations as defined by the Petroleum (Refining,
Conversion, Transmission and Midstream Storage) Act, 2013.20
(5) Notwithstanding subsection (1), a person being a national, regional, local or public
authority or body which carries on business activities shall apply for registration at the
date of commencement of those activities.
(6) An engineer, lawyer, economist, architect, publisher, auctioneer, estate agent, valuer,
accountant, auditor, clearing and forwarding agent or other professional supplying goods
or services for consideration as part of his or her business, but who is not required by
subsection (1) or (2) to apply for registration, shall apply to be registered in accordance
with Section 8, without regard to the eligibility requirement under subsection (2).21
(7) The registration under paragraph (c) of subsection (1) shall be valid only for purposes of
accessing terms and conditions of payment of tax on plant and machinery as provided
under section 34A (7).22
8. Registration
(1) An application for registration under Section 7 shall be in the form prescribed by the
Commissioner General, and the applicant shall provide the Commissioner General with
such information as the Commissioner General may require.
(2) The Commissioner General shall register a person who applies for registration under
Section 7 and issue to that person a certificate of registration including the VAT
registration number unless the Commissioner General is satisfied that that person is not
eligible for registration under this Act or, in the case of an application under section 7(4)
— (a) the person has no fixed place of abode or business; or (b) the Commissioner
General has reasonable grounds to believe that that person—
(i) will not keep proper accounting records relating to any business activity
carried on by that person;
(ii) will not submit regular and reliable tax returns as required by Section 31A 23;
or
(iii) is not a fit and proper person to be registered.
19
Inserted by VAT (Am) Act 1, 2015
20
21
Inserted by VAT (Am) Act, 2002 and Repealed by VAT (Am) Act, 2008
22
23
Previously Section 31
(3) Registration under this Section takes effect—
(a) in the case of an application under Section 7(1), (5) or (6)24 from the beginning of the
tax period immediately following the period in which the duty to apply for
registration a rose; or
(b) in the case of an application under Section 7(4), from the beginning of the tax period
immediately following the period in which the person applied for registration.
(4) A certificate of registration shall state the name and other relevant details of the taxable
person, the date on which the registration takes effect, and the taxpayer identification
number.
(5) The Commissioner General shall establish and maintain a register containing the relevant
details of all taxable persons.
(6) The Commissioner General may register a person if there are reasonable grounds for
believing that the person is required to apply for registration under Section 7 but has
failed to do so, and that registration shall take effect from the date specified in the
certificate of registration.
(7) The Commissioner General shall serve a notice in writing on a person of the decision to
refuse to register the person under subsection (2) within one month of receiving the
application.
(8) The Commissioner General shall serve a notice in writing on a person of a decision to
register the person under subsection (6) within one month of making the decision.
(9) A person dissatisfied with a decision made under subsection (8) may only challenge the
decision under Part VIII of this Act on the basis that the decision is an assessment.
(10) A taxable person shall notify the Commissioner General in writing of any change
(a) in the name or address of that person;
(b) in circumstances where the person no longer satisfies the grounds for registration; or
(c) of a material nature in business activities or in the nature of taxable supplies being
made,
and the notification shall be made within fourteen days after the change has occurred.
24
9. Cancellation of Registration
(1) A taxable person shall apply in writing for the cancellation of the registration if that
person has ceased to make supplies of goods or services for consideration as part of the
business activities of the person.
(2) Subject to subsection (3), a taxable person may apply in writing to have his or her
registration cancelled if, with respect to the most recent period of three calendar months,
the value of his or her taxable supplies exclusive of tax does not exceed one-quarter of
the annual registration threshold specified under Section 7(2) and if the value of his or
her taxable supplies exclusive of tax for the previous twelve calendar months does not
exceed seventy five per cent of the annual registration threshold.
(3) In the case of a taxable person who applied for registration under Section 7(4), an
application under subsection (2) may only be made after the expiration of two years from
the date of registration.
(4) The Commissioner General may cancel the registration of—
(a) a person who has applied for cancellation under subsection (1) or (2); or
(b) a person who has not applied for cancellation of registration but in respect of whom
the Commissioner General is satisfied that he or she is neither required nor entitled
under Section 7 to apply for registration.
(5) The Commissioner General may cancel the registration of a person who is not required
to apply for registration under Section 7 where the person—
(a) has no fixed place of abode or business;
(b) has not kept proper accounting records relating to any business activity carried on by
him or her;
(c) has not submitted regular and reliable tax returns as required by Section 31A; or
(d) is not, in the opinion of the Commissioner General, a fit and proper person to be
registered.
(6) The Commissioner General shall serve a notice in writing on a taxable person of a
decision to cancel or refuse to cancel the registration under this Section within fourteen
days of making the decision.
(7) The cancellation of registration shall take effect from the end of the tax period in which
the registration is cancelled.
(8) Where the registration of a person is cancelled, the Commissioner General shall remove
that person’s name and the details described in section 8 from the register.
(9) A taxable person whose registration has been cancelled under this Section shall be
regarded as having made a taxable supply of all goods on hand (including capital goods)
and shall be liable for output tax, at the time the registration is cancelled, on all goods in
respect of which he or she received input tax credit, the output tax payable being based
on the fair market value of the goods at the time his or her registration was cancelled.
(10)
(10) The obligations and liabilities of a person under this Act, including the lodging of
returns required under section 31A, in respect of anything done or omitted to be done by
that person while a taxable person shall not be affected by cancellation of the person’s
registration.
PART IV—SUPPLIES OF GOODS AND SERVICES

10. Supply of Goods
(1) Except as otherwise provided under this Act, a supply of goods means any arrangement
under which the owner of the goods parts or will part with possession of the goods,
including a lease or25 an agreement of sale and purchase.
(2) A supply of electrical or thermal energy, heating, gas, refrigeration, air conditioning or
water is a supply of goods.26
(3) The application of goods to own use is a supply of the goods.
11. Supply of Services

(1) Except as otherwise provided under this Act, a supply of services means a supply which is
not a supply of goods or money, including—
(a) the performance of services for another person;
(b) the making available of any facility or advantage;
(c) the toleration of any situation or the refraining from the doing of any activity; or
25
26
Repealed by VAT (Am) Act, 2011
(d) the provision of thermal and electrical energy, heating, gas, refrigeration, air
conditioning and water.27
(2) A supply of services made by an employee to an employer by reason of employment is not a
supply made by the employee.
12. Mixed supplies

(1) A supply of services incidental to the supply of goods is part of the supply of goods.
(2) A supply of goods incidental to the supply of services is part of the supply of services.
(3) A supply of services incidental to the import of goods is part of the import of goods.
(4) Regulations made under Section 78 may provide that a supply is a supply of goods or
services.
13. Supply by Agent
(1) A supply of goods or services made by a person as agent for another person being the
principal is a supply by the principal.
(2) Subsection (1) does not apply to an agent’s supply of services as agent to the principal.
14. Time of Supply

(1) Except as otherwise provided under this Act, a supply of goods or services occurs—
(a) where the goods are applied to own use, on the date on which the goods or services
are first applied to own use;
(b) where the goods or services are supplied by way of gift, on the date on which
ownership in the goods passes or the performance of the service is completed; or
(c) in any other case, on the earliest of the date on which—
(i) the goods are delivered or made available, or the performance of the service is
completed;
(ii) payment for the goods or services is made; or
(iii) a tax invoice is issued.
(2) Where—
(a) goods are supplied under a rental agreement; or
(b) goods or services are supplied under an agreement or law which provides for periodic
payments,
the goods or services are treated as successively supplied for successive parts of the
period of the agreement or as determined by that law, and each successive supply
occurs on the earlier of the date on which payment is due or received.
(3) For the purposes of this Section, where two or more payments are made or are to be
made for a supply of goods or services other than a supply to which subsection (2)
27
Inserted by Vat (Am) Act, 2011
applies, each payment shall be regarded as made for a separate supply to the extent of the
amount of the payment on the earlier of the date the payment is due or received.
(4) A person making a supply to which subsection (1)(a) or (b) applies shall keep a record of
the date on which the supply occurred as determined under this Section.
(5) In this Section, “rental agreement” means any agreement for the letting of goods
including a hire-purchase agreement or finance lease.
15. Place of Supply of Goods

A supply of goods shall take place in Uganda if the goods are delivered or made available in
Uganda by the supplier, or if the delivery or making available involves transportation, the goods
are in Uganda when the transportation commences.
(1) Except as otherwise provided under this Act, a supply of goods takes place where the
goods are delivered or made available by the supplier.
(2) A supply of thermal or electrical energy, heating, gas, refrigeration, air conditioning, or
water, takes place where the supply is received.28
16. Place of Supply of Services
(1) A supply of services shall take place in Uganda if the business of the supplier from
which the services are supplied is in Uganda.
(2) Notwithstanding subsection (1), a supply of services shall take place in Uganda if the
recipient of the supply is not a taxable person and–
(a) the services are physically performed in Uganda by a person who is in Uganda at the
time of supply;
(b) the services are in connection with immovable property in Uganda;
(c) the services are radio or television broadcasting services received at an address in
Uganda;
(d) the services are electronic services delivered to a person in Uganda at the time of
supply;
(e) the supply is a transfer, assignment, or grant of a right to use a copyright, patent,
trademark or similar right in Uganda; or
(f) the services are telecommunication services initiated by a person in Uganda other
than a supply initiated by—
(i) a supplier of telecommunications services; or
(ii) a person who is roaming while temporarily in Uganda.
28
(3) For the purposes of subsection (2)(f), the person who initiates a supply of
telecommunications services shall be the person who first does any of the following—
(a) the person who—
(i) controls the commencement of the supply;
(ii) pays for the services;
(iii) contracts for the supply; or
(b) the person to whom the invoice for the supply is sent.
(4) Where the supplier of a telecommunications service cannot identify any of the persons
referred to in subsection (3) because it is impractical to determine the physical location
of a person due to the type of service or to the class of customer to which the person
belongs, the supplier shall, in respect of all supplies of telecommunications services
made for that type of service or that class of customer, treat the supply as being made
where the physical residence or business address for the person receiving invoices from
the supplier is located.
(5) In this section—
(a) “electronic services” includes [means any of] the following, when provided or
delivered remotely– [on or through a telecommunications network]29
(i) websites, web-hosting or remote maintenance of programs and equipment;
(ii) software and the updating of software;
(iii) images, text and information;
(iv)access to databases;
(v) self-education packages;
(vi)music, films and games including games of chance; or
(vii) political, cultural, artistic, sporting, scientific and other broadcasts and
events including television;
(b) “telecommunications services” means the transmission, emission, or reception of
signals, writing, images, sounds, or information of any kind by wire, radio, optical, or
other electromagnetic systems and includes —
(i) the related transfer or assignment of the right to use capacity for such
transmission, emission, or reception; and
(ii) the provision of access to global or local information networks,
but does not include the supply of the underlying writing, images, sounds, or
information.
[16. Place of supply of services
29
(1) Except as otherwise provided under this Act, a supply of services takes place where the
services are rendered.
(2) A supply of services in connection with immovable property takes place where the
immovable property is located.
(3) A supply of services of, or incidental to, transport takes place where the transport
commences.
(4) A supply of services to which clause 1(a) of the third Schedule applies shall be regarded as
having been made in Uganda.
(5) Where a person is required to pay a fee for receiving a signal or service for a supply of
television, radio, telephone or other communication services, the supply takes place where that
person receives the signal or service, or where a supply involves an agent or any other person of
whatever description, the supply takes place at that person’s place of business.30]31
17. Imports
An import of goods takes place—
(a) where customs duty is payable, on the date on which the duty is payable; or
(b) in any other case, on the date the goods are brought into Uganda.
PART V—TAXABLE SUPPLIES
18. Taxable Supply

(1) A taxable supply is a supply of goods or services, other than an exempt supply, made in
Uganda 32by a taxable person for consideration as part of his or her business activities.
(2) A supply is made as part of a person’s business activities if the supply is made by him or
her as part of, or incidental to, any independent economic activity he or she conducts,
whatever the purposes or results of that activity.
(3) The business activities of an individual do not include activities carried on by him or her
only as part of his or her hobby or leisure activities.
30
Substituted by Finance Act, 2001
31
Section 16 Substituted by VAT (Am) Act, 2011
32
(4) A supply is made for consideration if the supplier directly or indirectly receives payment
for the supply, whether from the person supplied or any other person, including any
payment wholly or partly in money or kind.
(5) The application to own use by a taxable person of goods and services supplied to a
person for the purposes of the person’s business activities shall be regarded as a supply
of those goods and services for consideration as part of the person’s business activities.33
(5a) For the purposes of subsection (5), a supply of business goods and services for no
consideration is an application to own use.34
(6) Where goods and services have been supplied to a taxable person for the purposes of the
person’s business activities, the supply of those goods and services for reduced
consideration shall be regarded as a supply for consideration unless the goods and
services are supplied or used only as trade samples.35
(7) A supply is made for reduced consideration if the supply is made between associates for
no consideration or between associates for a consideration that is less than the fair market
value of the supply.
(8) Notwithstanding subsection (1) a supply of services by a foreign person for

consideration as part of the person’s business activities is treated as a taxable supply if
the services are considered as taking place in Uganda under Section 16.
(9) Subject to Section 19 and the Second Schedule, the sale or disposal of a business asset
by a taxable person is a taxable supply.36
19. Exempt Supply

(1) A supply of goods or services is an exempt supply if it is specified in the Second
Schedule.
(2) Where a supply is an exempt supply under paragraph 1(k) of the Second Schedule, both
the transferor and transferee shall, within 21 days of the transfer, notify the
Commissioner General in writing of the details of the transfer.
33
34
(5a) Inserted by Finance Act, 2001 and Substituted by VAT (Am) Act, 2009
35
36
Inserted by VAT (Am) Act, 2003 and Amended by VAT (Am) Act, 2006
20. Exempt Import
(1) An import of goods is an exempt import if the goods—
(a) are exempt from customs duty under the Fifth Schedule of the East African Community
Customs Management Act, 2004 except compact fluorescent bulbs with a power
connecting cap at the end, and lamps and bulbs made from Light Emitting Diodes
(LED) technology for domestic and industrial use;37 or
(b) would be exempt had they been supplied in Uganda.
(2) Import of a service is an exempt import if the service would be exempt had it been
supplied in Uganda or would be used in the provision of an exempt supply.38
20A. An import of a service is an exempt import if the service would be exempt had it been
supplied in Uganda.39
PART VI—TAXABLE VALUE

21. Taxable Value of a Taxable Supply
(1) Except as otherwise provided under this Act, the taxable value of a taxable supply is the
total consideration paid in money or in kind by all persons for that supply.
(2) The taxable value of—
(a) a taxable supply of goods by way of an application to own use;

(b) a taxable supply for reduced consideration; or
(c) a taxable supply described in Section 9(9), is the fair market value of the goods and
services at the time the supply is made.
(3) Where a taxable supply is made without a separate amount of the consideration being
identified as a payment of tax, the taxable value of that supply is the total amount of the
consideration paid excluding tax.
(4) The taxable value of a taxable supply of goods under a rental agreement, as defined in
Section 14, is the amount of the rental payments due or received.
(5) The taxable value of a taxable supply of goods or services where the Government has
provided a subsidy is the consideration paid in money or in kind by all persons for that
supply less the subsidy.40
37
Substituted by VAT (Am) Act, 2005, VAT (Am) Act, 2015 & VAT (Am) Act, 2016
38
39
20A Inserted by VAT (Am) Act, 2011; Repealed by VAT (Am) Act, 2021
40
22. Adjustments
(1) This Section applies where, in relation to a taxable supply by a taxable person –
(a) the supply is cancelled;
(b) the nature of the supply has been fundamentally varied or altered;
(c) the previously agreed consideration for the supply has been altered by agreement with
the recipient of the supply, whether due to an offer of a discount or for any other
reason; or
(d) the goods or services or part of the goods or services have been returned to the
supplier,
and the taxable person making the supply has –
(e) provided a tax invoice in relation to the supply and the amount shown in the invoice as
the tax charged on the supply is incorrect as a result of the occurrence of any one or
more of the above- mentioned events; or
(f) filed a return for the tax period in which the supply occurred and has accounted for an
incorrect amount of output tax on that supply as a result of the occurrence of any one
or more of the above- mentioned events.
(2) Where subsection (1) applies, the taxable person making the supply shall make an
adjustment as specified in subsection (3) or (4).
(3) Where the output tax properly chargeable in respect of the supply exceeds the output tax
actually accounted for by the taxable person making the supply, the amount of the excess
shall be regarded as tax charged by the person in relation to a taxable supply made in the
tax period in which the event referred to in subsection (1) occurred.
(4) Subject to subsection (6), where the output tax actually accounted for exceeds the output
tax properly chargeable in relation to that supply, the taxable person making the supply
shall be allowed a credit for the amount of the excess in the tax period in which the event
referred to in subsection (1) occurred.
(5) The credit allowed under subsection (4) shall, for the purposes of this Act, be treated as a
reduction of output tax.
(6) No credit is allowed under subsection (4) where the supply has been made to a person
who is not a taxable person, unless the amount of the excess tax has been repaid by the
taxable person to the recipient, whether in cash or as a credit against any amount owing to
the taxable person by the recipient.
23. Taxable Value of an Import of Goods
The taxable value of an import of goods is the sum of—
(a) the value of the goods ascertained for the purposes of customs duty under the laws
relating to customs;
(b) the amount of customs duty, excise tax, and any other fiscal charge other than tax payable
on those goods; and
(c) the value of any services to which Section 12(3) applies which is not otherwise included
in the customs value under paragraph (a).
PART VII—CALCULATION OF TAX PAYABLE

24. Calculation of Tax Payable on a Taxable Transaction
(1) Subject to subsection (2), the tax payable on a taxable transaction is calculated by
applying the rate of tax to the taxable value of the transaction.
(2) Where the taxable value is determined under Section 21(2) or (3), the tax payable is
calculated by the formula specified in Section 1(a) of the Fourth Schedule.
(3) Subject to subsection (4), the rate of tax shall be as specified in Section 78(2).
(4) The rate of tax imposed on taxable supplies specified in the Third Schedule is zero.
(5) The tax payable on a taxable supply made by a contractor to a licensee to undertake
mining or petroleum operations is deemed to have been paid by the licensee to the
contractor provided the supply is for use by the licensee solely and exclusively for mining
or petroleum operations.41
(6) For the purposes of this section, the tax payable on a taxable supply made by a supplier to
a contractor executing an aid-funded project is deemed to have been paid by the contractor
provided the supply is for use by the contractor solely and exclusively for the aid funded
project.42
(7) For purposes of this section, 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 if the supply is for use solely and
exclusively for the aid-funded project.43
(8) Under subsection (7), “aid-funded project” means a project financed by a foreign
government or a development agency through loans, grants and donations.44
(9) The tax payable on the following taxable supplies shall not be deemed to have been paid
under subsections (5) and (6)45 —
(a) a passenger automobile, and the repair and maintenance of that automobile; or
(b) entertainment.
(10) In this section—
41
42
43
44
45
(a) “passenger automobile” means a motor vehicle designed solely for the transport of
persons with a seating capacity of not more than eight persons;
(b) “entertainment” means the provision of food, beverages, tobacco, accommodation,
amusement, recreation, or hospitality of any kind;46
25. Calculation of Tax Payable by a Taxable Person for a Tax Period

(1) Subject to Section 26, the tax payable by a taxable person for a tax period is calculated
according to the formula specified in Section 1(b) of the Fourth Schedule.47
(2) For a contractor [or supplier], component X of the formula in paragraph 1(b) of the
Fourth Schedule, for a tax period does not include the amount of tax that the licensee [or
supplier] is deemed to have paid to the contractor under section 24(5) [or (6)] for the
period.48
(2a) For a supplier, component X of the formula in paragraph 1(b) of the Fourth Schedule, for
a tax period does not include the amount of tax that the contractor is deemed to have paid
to the supplier under section 24(6) for the period.49
(3) For a licensee, component Y of the formula in paragraph 1(b) of the Fourth Schedule for
a tax period does not include the amount of tax that the licensee is deemed to have paid to
the contractor under section 24(5) for the period.50
(4) For a contractor of a Government ministry, department or agency, component X of the
formula in paragraph 1(b) of the Fourth Schedule, for a tax period does not include the
amount of tax that the Government ministry, department or agency is deemed to have
paid to the contractor under section 24(7) for the period.51
26. Cash Basis Accounting

(1) This Section applies to a taxable person, the annual value of whose taxable supplies does not
exceed five hundred million shillings [two hundred million shillings]52.
(2) A taxable person to whom this Section applies may elect to account for tax purposes on a
cash basis.
(3) An election under subsection (2) shall be made in writing to the Commissioner General by
the due date for the first return in which the taxable person seeks to use the method of
accounting specified in subsection (2).
(4) Where a taxable person makes an election under subsection (2), that person must account for
both the output tax payable and the input tax credited on a cash basis.
46
(10) Inserted by VAT (Am) Act, 2018
47
Amended by VAT (Am) Act, 2015
48
Inserted by VAT (Am) Act, 2015; Substituted by VAT (Am) Act, 2016 & VAT (Am) Act, 2017
49
50
51
52
(5) A taxable person who has made an election under subsection (2) shall determine the tax
payable for a tax period according to the formula specified in Section 1(c) of the Fourth
Schedule.
(6) An election made under subsection (2) remains in force until—
(a) withdrawn by the taxable person by notice in writing to the Commissioner General; or
(b) the Commissioner General, by notice in writing to the taxable person, requires the person
to determine the tax payable for a tax period in accordance with Section 25.
(7) A taxable person who has made an election under subsection (2) may not withdraw the
election within two years after making the election unless the person is no longer a person to
whom this Section applies.
27. Consequences of a Change in Accounting Basis

(1) Every taxable person whose accounting basis is changed is liable for tax, if any, as
determined under this Section in the tax period in which the change occurred.
(2) Where a taxable person changes from the method of accounting provided under Section 25
(referred to as the “invoice basis”) to the method of accounting provided under Section 26
(referred to as the “cash basis”), the tax payable under subsection (1) is determined in
accordance with the formula specified in Section 1(d) of the Fourth Schedule.
(3) Where a taxable person changes from a cash basis to an invoice basis of accounting, the tax
payable under subsection (1) is determined in accordance with the formula specified in
Section 1(e) of the Fourth Schedule.
(4) If the amount determined in accordance with subsection (2) or (3) is negative, it shall be
refunded to the taxable person in accordance with Section 42(1).
28. Credit for Input Tax

(1) Where Section 25 applies for the purposes of calculating the tax payable by a taxable person
for a tax period, a credit is allowed to the taxable person for the tax payable in respect of—
(a) all taxable supplies made to that person during the tax period; or
(b) all imports of goods [and services] made by that person or import of services made by a
contractor or licensee or a person providing business process outsourcing services
during the tax period,53
if the supply or import is for use in the business of the taxable person.
(2) Where Section 26 applies for the purposes of calculating the tax payable by a taxable person
for a tax period, a credit is allowed to the taxable person for any tax paid in respect of taxable
supplies to, or imports by, the taxable person where the supply or import is for use in the
business of the taxable person.
(3) A credit is allowed to a taxable person on becoming registered for input tax paid or payable
in respect of—
53
Repealed by VAT (Am) Act, 2012 & Inserted by VAT (Am) Act, 2015 & VAT (AM) Act, 2016
(a) all taxable supplies of goods, including capital assets, made to the person prior to the
person becoming registered; or
(b) 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 or in case of
manufacturers, not more than twelve months before the date of registration 54. [or, in
the case of capital goods, not more than six months before the date of registration.]55
(4) An input tax credit—
(a) under subsection (1) arises on the date the goods or services are supplied to, or imported
by, the taxable person;
(b) under subsection (2) arises on the date the tax is paid; or
(c) under subsection (3) arises on the date of registration.
(4a) 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.56
(5) A taxable person under this Section shall not qualify for input tax credit in respect of a
taxable supply or import of—
(a) a passenger automobile, and the repair and maintenance of that automobile, including
spare parts, unless the automobile is acquired by the taxable person exclusively for the
purpose of making a taxable supply of that automobile in the ordinary course of a
continuous and regular business of selling or dealing in or hiring of passenger
automobiles;
(b) entertainment unless the taxable person—
(i) is in the business of providing entertainment; or
(ii) supplies meals or refreshments to his or her employees in premises operated by him
or her, or on his or her behalf, solely for the benefit of his or her employees; or
(c) telephone services, to the extent of 10 per cent of the input tax on those services.
(6) Subject to subsection (7), where a taxable supply to, or an import of goods by, a taxable
person is partly for a business use as set out in subsection (1), (2), or (3) and partly for
another use, the amount of the input tax allowed as a credit is that part of the input tax that
relates to the business use.
(7) Subject to subsections (8) and (9) [(9) and (10)]57, the input tax that may be credited by a
taxable person for a tax period is—
54
55
Substituted by Finance Act, 2001
56
57
(a) where all of the taxable person’s supplies for that period are taxable supplies, the whole
of the input tax specified in subsection (1) or (2); or
(b) where only part of the taxable person’s supplies for that period are taxable supplies, the
amount calculated according to the formula specified in Section 1(f) of the Fourth
Schedule.
(8) Where the fraction B/C in Section 1(f) of the Fourth Schedule is less than 0.05, the taxable
person may not credit any input tax for the period.
(9) Where the fraction B/C in section 1(f) of the Fourth Schedule is more than 0.95, the taxable
person may credit all input tax for the period.
(10) Notwithstanding subsection (7)(b), the Commissioner General may approve a proposal
by a taxable person for the apportionment of input tax credit where the taxable person makes
both taxable and exempt supplies.
(11) Subject to subsection (13), an input tax credit allowed under this Section may not be
claimed by the taxable person until the tax period in which the taxable person has—
(a) an original tax invoice for the taxable supply; or
(b) a bill of entry or other document prescribed under the East African Community
Customs Management Act, 2004 evidencing the amount of input tax.58
(12) Where a taxable person does not have a tax invoice evidencing the input tax paid, the
Commissioner General may allow an input tax credit in the tax period in which the credit
arises where the Commissioner General is satisfied that—
(a) the taxable person took all reasonable steps to acquire a tax invoice;
(b) the failure to acquire a tax invoice was not the fault of the taxable person; and
(c) the amount of input tax claimed by the taxable person is correct.
(13) Where a taxable person has made a calculation under subsection (7) for any tax period of
a calendar year, he or she shall, in the first tax period of the following year, make a
calculation based on the annual value of taxable and exempt supplies.
(14) Where—
(a) the calendar year credit exceeds the return credit, the excess shall be claimed as a credit
in the first tax period of the following calendar year; or
(b) the return credit exceeds the calendar year credit, the excess shall be regarded as tax
charged by the taxable person in relation to a taxable supply made in the first tax period
of the following calendar year.
(14a) A taxable person under this section shall apply for input tax credit within six months from
the date of the invoice.59
(15) In this Section—
(a) “calendar year credit” means the total input tax payable, where Section 25 applies, or
paid, where Section 26 applies for the calendar year;
(b) “entertainment” means the provision of food, beverages, tobacco, accommodation,
amusement, recreation, or hospitality of any kind;
58
59
(c) “passenger automobile” means a road vehicle designed solely for the transport of sitting
persons;
(d) “return credit” means the total of the input tax claimed as a credit in each tax period of
the calendar year; and
(e) “telephone services” does not include telephone call services supplied to a hotel, lodge or
similar establishment where output tax has been accounted for by the establishment on
the supply of that service to their customers.
29. Tax Invoices

(1) A taxable person making a taxable supply to any person shall provide that other person, at
the time of supply, with an original tax invoice for the supply.
(2) A taxable person making a taxable supply shall retain one copy of the tax invoice referred
to in subsection (1).
(3) Where a supplied person loses the original tax invoice, the supplier may provide a duplicate
copy clearly marked ‘COPY’.
(4) An original tax invoice shall not be provided in any circumstance other than that specified
in subsection (1).
(5) A person—
(a) who has not received a tax invoice as required by subsection (1); or
(b) to whom Section 28(3) applies, may request a person, who has supplied goods or
services to him or her, to provide a tax invoice in respect of the supply.
(6) A request for a tax invoice under subsection (5) shall be made— (a) in the case of a request
under subsection (5)(a), within thirty days after the date of the supply; (b) in the case of a
request under subsection (5)(b), within thirty days after the date of registration.
(7) A taxable person who receives a request under subsection (5) shall comply with the request
within fourteen days after receiving that request.
(8) A tax invoice is an invoice containing the particulars specified in Section 2 of the Fourth
Schedule.
30. Credit and Debit Notes

(1) Where a tax invoice has been issued in the circumstances specified in Section 22(1)(e) and
the amount shown as tax charged in that tax invoice exceeds the tax properly chargeable
in respect of the supply, the taxable person making the supply shall provide the recipient
of the supply with a credit note containing the particulars specified in Section 3 of the
Fourth Schedule.
(2) Where a tax invoice has been issued in the circumstances specified in Section 22(1)(e) and
the tax properly chargeable in respect of the supply exceeds the amount shown as tax
charged in that tax invoice, the taxable person making the supply shall provide the
recipient of the supply with a debit note containing the particulars specified in Section 4 of
the Fourth Schedule.
PART VIII—PROCEDURE AND ADMINISTRATION OF TAX

Returns and Assessments
31. Returns60
31A. Returns 61
(1) A taxable person shall lodge a tax return with the Commissioner General for each tax period
within fifteen days after the end of the tax period.
(1a) Notwithstanding subsection (1), a taxable person who supplies services in Uganda under
section 16(2), shall lodge a tax return with the Commissioner General within fifteen days
after
the end of three consecutive calendar months.62
(2) A tax return shall be in the form prescribed by the Commissioner General and shall state the
amount of tax payable for the period, the amount of input tax credit refund claimed, and such
other matters as may be prescribed by the Commissioner General.
(3) In addition to a return required under subsection (1), the Commissioner General may require
any person, whether that person is a taxable person or not, to lodge with the Commissioner
General, further or other returns in the prescribed form, on that person’s own behalf or as
agent or trustee of another person.
32. Assessments
33. General Provisions relating to Assessments
PART VIIIA—OBJECTIONS AND APPEALS63

33A. Interpretation
33B. Objections to Assessment
33C. Appeals to Tax Appeals Tribunal
33D. Appeals to High Court
33E. Burden of Proof
Collection and Recovery of Tax
34. Due Date for Payment of Tax64

60
Sections 31 – 40 Repealed by TPC Act, 2014
61
Sections 31 Repealed by TPC Act, 2014 and Re-enacted as Section 31A by VAT (Am) Act, 2018
62
63
Sections 33A – 33E Inserted by Finance Act, 2001
64
Sections 31 Repealed by TPC Act, 2014 and Re-enacted as Section 31A by VAT (Am) Act, 2018
34A. Due Date for Payment of Tax
(1) Tax payable under this Act is due and payable—
(a) in the case of a taxable supply by a taxable person in respect of a tax period, on the date
the return for the tax period must be lodged;
(b) in the case of an assessment issued under this Act, on the date specified in the notice of
assessment; or
(c) in any other case, on the date the taxable transaction occurs, as determined under this Act.
(2) The tax payable by a taxable person under subsection (1) shall be determined in accordance
with Part VII of the Act.
(3) Upon a written application by a person liable for tax, the Commissioner General may, where
good cause is shown, extend the time for payment of tax beyond the date on which it is due
and payable, or make such other arrangements as appropriate to ensure the payment of the
tax due.
(4) Where the Commissioner General has reasonable grounds to believe that a person may leave
Uganda permanently without paying all tax due under this Act, the Commissioner General
may issue a certificate containing particulars of the tax to the Commissioner of Immigration
and the Commissioner General may request the Commissioner of Immigration to prevent that
person from leaving Uganda until that person makes—
(a) payment in full; or
(b) an arrangement satisfactory to the Commissioner General for the payment of the tax.
(5) A copy of a certificate issued under subsection (4) shall be served on the person named in the
certificate if it is practicable in the circumstances to do so.
(6) The production of a certificate signed by the Commissioner General stating that the tax has
been paid or secured shall be sufficient proof of payment of tax specified in the certificate
referred to in subsection (4) and shall be authority for allowing that person to leave Uganda.
(7) Notwithstanding subsection (1), the Minister may, by regulations, prescribe the terms and
conditions of payment of tax on plant and machinery.
35. Tax as a Debt Due to Government

36. Security
37. Preferential Claim to Assets
38. Seizure of Goods
39. Closure of Business and Distress Proceedings
40. Recovery of Tax from Third Parties
41. Duties of Receivers

(1) A receiver shall in writing notify the Commissioner General within fourteen days after being
appointed to the position of receiver or taking possession of an asset in Uganda, whichever
first occurs.
(2) The Commissioner General may in writing notify a receiver of the amount which appears to
the Commissioner General to be sufficient to provide for any tax which is or will become
payable by the person whose assets are in the possession of the receiver.
(3) A receiver shall not part with any asset in Uganda, which is held by the receiver in his or her
capacity as receiver without the prior written permission of the Commissioner General.
(4) A receiver—
(a) shall set aside, out of the proceeds of the sale of an asset, the amount notified by the
Commissioner General under subsection (2), or such lesser amount as is subsequently
agreed on by the Commissioner General;
(b) is liable to the extent of the amount set aside for the tax of the person who owned the
asset; and
(c) may pay any debt that has priority over the tax referred to in this Section notwithstanding
any provision of this Section.
(5) A receiver is personally liable to the extent of any amount required to be set aside under
subsection (4) for the tax referred to in subsection (2) if, and to the extent that, the receiver
fails to comply with the requirements of this Section.
(6) In this Section, “receiver” includes a person who, with respect to an asset in Uganda, is—
(a) a liquidator of a company;
(b) a receiver appointed out of court or by a court;
(c) a trustee for a bankrupt person;
(d) a mortgagee in possession;
(e) an executor of a deceased person; or
(f) any other person conducting the business of a person legally incapacitated.
Refund of Tax
42. Refund of Overpaid Tax
(1) If, for any tax period, a taxable person’s input tax credit 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.
(2) Notwithstanding subsection (1), the Commissioner General—
(a) shall, where the taxable person’s input credit exceeds his or her liability for tax for that
period by less than five million shillings, except in the case of a licensee [an investment
trader]65 or person providing mainly zero rated supplies, offset that amount against the
future liability of the taxable person; and
(b) may, with consent of the taxable person, where the taxable person’s input credit exceeds
his or her liability for tax for that period by five million shillings or more, offset that
65
amount against the future liability of the taxable person, or apply the excess in reduction
of any other tax not in dispute due from the taxpayer.66
(2a) If for any tax period taxable supplies in stock or stock in transit are lost due to theft, fire,
accident, or force majeure and input tax has been paid on those goods, the Commissioner
General may grant a refund or allow credit for the input tax paid on those goods if there is
evidence that the goods are destroyed or lost and cannot be recovered.
[Where goods in stock are lost due to theft or fire and input tax has been paid on those
goods, the Commissioner General may grant a refund or allow credit for the input tax
paid on those goods if there is evidence that the goods are lost and cannot be recovered]67
(3) A person may claim a refund of any output tax paid in excess of the amount of tax due under
this Act for a tax period.
(4) A claim for a refund under subsection (3) shall be made in a return within three years after
the end of the tax period in which tax was overpaid.
(5) Where a person has claimed a refund under subsection (3) and the Commissioner General is
satisfied that the person has paid an amount of tax in excess of the amount of tax due, the
Commissioner General shall refund immediately the excess to the taxable person.
(6) Where a person claiming a refund is required by the Commissioner General to provide
accounts or records to substantiate the claim and fails to do so in a manner satisfactory to the
Commissioner General within seven days of being requested, the time period specified in
subsection (1) for making the refund shall not be binding on the Commissioner General.
(7) The Commissioner General shall serve on a person claiming a refund a notice in writing of a
decision in respect of the claim.
(8) A person dissatisfied with a decision under subsection (6) may only challenge the decision
under Part IV of the Tax Appeals Tribunal Act.
(9) No refund shall be made under subsection (5) in relation to a taxable supply that has been
made to a person who is not a taxable person, unless the Commissioner General is satisfied
that the amount of the excess tax has been repaid by the taxable person to the recipient,
whether in cash or as a credit against an amount owing to the taxable person by the recipient.
43. Refund of Tax for Bad Debts

(1) Where a taxable person has supplied goods or services for a consideration in money, and
has–
(a) paid the full tax on the supply to the Commissioner General, but has not within two years
after the supply received payment, in whole or in part from the person to whom the goods
or services are supplied; and
66
67
Inserted by Finance Act, 2001 & Substituted by VAT (Am) Act, 2013
(b) taken all reasonable steps to the satisfaction of the Commissioner General, to pursue
payment and he or she reasonably believes that he or she will not be paid, that person
may seek a refund of that portion of the tax paid for which he or she has not received
payment.
(2) If a refund is taken under subsection (1) and the taxable person later receives payment in
whole or in part, in respect of the debt, he or she shall remit to the Commissioner General,
with his or her next tax return, a sum equal to the portion of the payment that represents the
tax refunded.
(3) A registered supplier who fails to remit the tax in accordance with subsection (2) with his or
her next return, commits an offence and is liable on conviction to a fine not exceeding five
hundred thousand shillings, in addition to the payment of the full amount of the undeclared
tax plus a penal tax on that outstanding tax calculated at the rate specified in the Fifth
Schedule.
44. Interest on Overpayments and Late Refunds

(1) Where the Commissioner General is required to refund an amount of tax to a person as a
result of [a decision of the reviewing body as defined in Section 28 of the Tax Appeals
Tribunal Act]—
(a) a decision under section 33B;68
(b) a decision of the Tax Appeals Tribunal; or
(c) a decision of the High Court, the Court of Appeal or the Supreme Court,
he or she shall pay interest at a rate of 2% per month compounded on the tax to be
refunded [five percentage points higher than the prevailing official bank rate of Bank of
Uganda on the amount of the refund for the period commencing from the date the person
paid the tax refunded and ending on the last day of the month the refund is made]69.
(2) Where the Commissioner General fails to make a refund required under Section 42(1) within
the time specified in that Section, he or she shall pay interest at a rate of 2% per month
compounded on the amount of refund for the period [five percentage points higher than the
prevailing official bank rate of Bank of Uganda on the amount of the refund for the period
commencing on the day after the latest date for making the refund and ending on the date the
refund is made]70.
(3) Where the Commissioner General finds, after conducting an investigation of any amount
shown as an excess in terms of Section 42(1), that the excess amount of input tax credit is
greater than the true amount due in excess of not less than fifty thousand shillings, no interest
shall be payable [in terms of subsection (2) in respect of the delay in making the refund]
under subsection (2) where there has been a delay in making the refund.71
(4) Notwithstanding subsection (1), a taxpayer who causes delay in determining a correct refund
payable to him or her, and leading to a belated refund process, is only entitled to interest with
68
Section 33B was Repealed by the TPC Act, 2014
69
Substituted by VAT (Am No. 2) Act, 2002
70
71
effect from sixty days from the date on which he or she filed his or her delayed return, lodged
an application with the Tax Appeals Tribunal or the High Court, or submitted to the
Commissioner General all necessary and satisfactory information required in relation to the
refund in question, whichever is the later.72
(5) Notwithstanding subsections (1), (2) and (4), the interest due and payable on over payments
and late refunds shall not exceed the principal tax.73
45. Refund of Tax to Diplomats and Diplomatic and Consular Missions and International
Organisations
(1) The Minister may, with the concurrence of the Minister responsible for Foreign Affairs,
authorise the granting of a refund in respect of tax paid or borne by—
(a) any person enjoying full or limited immunity, rights or privileges under any local or
international laws applicable in Uganda or under recognised principles of international
law; or
(b) any diplomatic or consular mission of a foreign country or any public international
organisation established in Uganda or listed in the First Schedule to this Act relating to
transactions concluded for its official purposes.
(2) The refund provided for in subsection (1)(a) shall not be available to any citizen or
permanent resident of Uganda.
(3) Any claim for a refund of tax under this Section shall be made in such form and at a time that
the Commissioner General may prescribe and shall be accompanied by proof of payment of
tax.
(4) The Minister may make regulations specifying conditions to be met or restrictions to apply
for claiming or granting of tax refunds under this Section.
45A Refund of tax for use of electronic receipt or invoice
A person other than a taxable person who purchases goods or services from a taxable person and
is issued with an electronic receipt or invoice or several electronic receipts or invoices worth five
million shillings within a period of thirty consecutive days, shall be entitled to a refund of five
percent of the tax paid.74
Records and Investigation Powers

46. Records75
47. Access to Books, Records and Computers
48. Notice to Obtain Information or Evidence
49. Books and Records not in English Language
72
Inserted by VAT (Am No. 2) Act, 2002
73
74
75
Sections 46 – 64 Repealed by TPC Act, 2014
Taxpayer Identification Number
50. Tax Identification Number

Offences and Penal Tax
51. Offences related to Registration
52. Offences related to Tax Invoices, Credit Notes, and debit Notes
53. Failure to Lodge a Return
54. Failure to Comply with Recovery Provision
55. Failure to maintain Proper Records
56. Failure to Provide Reasonable Assistance
57. failure to Comply with Section 48 or 49 Notice
58. Improper Use of Tax Identification Number
59. False or Misleading Statements
60. Obstructing an Officer of the Authority
61. Offences by Officers and other Persons
62. Offences by Companies
63. Officer may appear on behalf of Commissioner General
64. Compounding of offences
65. Penal Tax

(1) A person who fails to apply for registration as required by Section 7(1) or (5) is liable to pay
a penal tax equal to double the amount of tax payable during the period commencing on the
last day of the application period in Section 7(1) until either the person files an application
for registration with the Commissioner General or the Commissioner General registers the
person under Section 8(6).
(2) A person who fails to lodge a return within the required time under this Act is liable to pay a
penal tax amounting to whichever is the greater of the following:—
(a) two hundred thousand shillings; or
(b) an interest charge for the period the return is outstanding calculated according to the
formula specified in the Fifth Schedule.
(3) A person who fails to pay tax imposed under this Act on or before the due date is liable to
pay a penal tax on the unpaid tax at a rate specified in the Fifth Schedule for the tax which is
outstanding.
(4) If a person pays a penal tax under subsection (3) and the tax to which it relates is found not to
have been due and payable by the person and is refunded, then the penal tax, or so much of
the penal tax as relates to the amount of the refund, shall also be refunded to that person.
(5) A person who fails to maintain proper records in a tax period in accordance with the
requirements of this Act is liable to pay a penal tax equal to double the amount of tax payable
by the person for the tax period.
(6) Where a person [knowingly or recklessly]76—
(a) makes a statement or declaration to an official of the Uganda Revenue Authority that is
false or misleading in a material particular;77 or
(b) omits from a statement made to an official of the Uganda Revenue Authority any matter
or thing without which the statement is misleading in a material particular, and
(i) the tax properly payable by the person exceeds the tax that was assessed as
payable based on the false or misleading information;
(ii) the amount of the refund claimed was false; or
(iii) the person submitted a return with an incorrect offset claim, that person is
liable to pay penal tax equal to double the amount of the excess tax, refund or
claim.
(7) Section 59(478) applies in determining whether a person has made a statement to an official of
the Uganda Revenue Authority.
65A. Interest on Unpaid Tax 79
(1) The interest due and payable on unpaid tax shall not exceed the aggregate of the principal
and penal tax.
(2) For the avoidance of doubt, where the interest due and payable as at 30th June 2017 exceeds
the aggregate referred to in subsection (1), the interest in excess of the aggregate shall be
waived.
66. Recovery of Penal Tax

(1) Where good cause is shown, in writing, by the person liable to pay a penal tax, the
Commissioner General may remit in whole or part any penal tax payable other than the penal
tax imposed or payable under Section 65 for late payment.
(2) Subject to subsection (3), the imposition of a penal tax is in addition to any penalty imposed
as a result of a conviction for an offence under sections 51 to 64.
(3) No penal tax is payable under Section 65 where the person has been convicted of an offence
under section 51, 55, or 59 in respect of the same act or omission80.
(4) If a penal tax under Section 65 has been paid and the Commissioner General institutes a
prosecution proceeding under section 51, 55 or 59 81 in respect of the same act or omission,
76
77
78
Section 54 was Repealed by TPC Act, 2014
79
80
Sections 51, 59and 59 referred to here were Repealed
81
Sections 51, 59and 59 referred to here were Repealed
the Commissioner General shall refund the amount of penal tax paid; and that penal tax is not
payable unless the prosecution is withdrawn.
(5) Penal tax shall for all purposes of this Act be treated as a tax of the same nature as the output
tax to which it relates and shall be payable in and for the same tax period as that output tax.
(6) Penal tax shall be assessed by the Commissioner General in the same manner as the output
tax to which it relates and an assessment of penal tax shall be treated for all purposes as an
assessment of tax under this Act.
67. Remission of Tax

(1) Where the Commissioner General is of the opinion that the whole or any part of the tax due
under this Act from a taxpayer cannot be effectively recovered by reason of –
(a) considerations of hardship; or
(b) impossibility, undue difficulty, or the excessive cost of recovery,
the Commissioner General may refer the taxpayer’s case to the Minister.
(2) Where the taxpayer’s case has been referred to the Minister under subsection (1) and the
Minister is satisfied that the tax due cannot be effectively recovered, the Minister may remit
or write off, in whole or part, the tax due from the taxpayer.
PART IX—GENERAL PROVISIONS82

68. Form, Authentication and Availability of Documents
68A. Use of Information Technology
68B. Cancellation of Registration
68C. Offences
69. Service of Notices and other Documents
70. Nominated Person
70A. VAT Representatives of Non-Resident Persons
71. Application of Act to Partnerships and Unincorporated Associations

(1) This Act applies to a partnership as if the partnership were a person, but with the following
changes—
(a) obligations that would be imposed on the partnership are imposed on each partner, but
may be discharged by any of the partners;
(b) the partners are jointly and severally liable to pay any amount that would be payable by
the partnership; and
(c) any offence under this Act that would otherwise be committed by the partnership is taken
to have been committed by each of the partners.
82
Sections 68 – 70A were Repealed by TPC Act, 2014
(2) This Act applies to an unincorporated association as if it were a person, but the obligations
that would be imposed on the association are imposed on each member of the committee of
management of the association, but may be discharged by any of those members.
(3) In a prosecution of a person for an offence that the person is taken to have committed under
subsection (1)(c), it is a defence if the person proves that he or she—
(a) did not aid, abet, counsel, or procure the relevant act or omission; and
(b) was not in any way knowingly concerned in, or party to, the relevant act or omission.
72. Trustee
A person who is a trustee in more than one capacity is treated for the purposes of this Act as a
separate person in relation to each of those capacities.
73. Currency Conversion
(1) For the purposes of this Act, all amounts of money are to be expressed in Uganda shillings.
(2) Where an amount is expressed in a currency other than Uganda shillings, the amount shall be
converted into the Uganda shillings using the weighted selling rates of the previous month
for the currency concerned.
74. Prices Quoted to include Tax
Any price advertised or quoted for a taxable supply shall include tax and the advertisement or
quotation shall state that the price includes the tax.
75. Schemes for obtaining Undue Tax Benefits

(1) Notwithstanding anything in this Act, if the Commissioner General is satisfied that a scheme
has been entered into or carried out where–
(a) a person has obtained a tax benefit in connection with the scheme; and
(b) having regard to the substance of the scheme, it would be concluded that the person, or
one of the persons, who entered into or carried out the scheme did so for the sole or
dominant purpose of enabling the person to obtain the tax benefit,
the Commissioner General may determine the liability of the person who has obtained the
tax benefit as if the scheme had not been entered into or carried out, or in a manner as in
the circumstances the Commissioner General considers appropriate for the prevention or
reduction of the tax benefit.
(2) In this Section—

(a) “scheme” includes any agreement, arrangement, promise, or undertaking whether express
or implied and whether or not enforceable, or intended to be enforceable, by legal
proceedings, and any plan, proposal, course of action, or course of conduct;
(b) “tax benefit” includes—
(i) a reduction in the liability of any person to pay tax;
(ii) an increase in the entitlement of a person to a credit or refund; or
(iii) any other avoidance or postponement of liability for the payment of tax.
76. International Agreements

(1) To the extent that the terms of a treaty or other international agreement to which Uganda is a
party are inconsistent with the provisions of this Act, apart from Section 75, the terms of the
treaty or international agreement prevail over the provisions of this Act.
(2) In this Section, “international agreement” means an agreement between Uganda and a
foreign government or a public international organisation.
(3) Where an international agreement entered into between the Government of Uganda and the
Government of a foreign country or an international organisation, provides tax relief to the
foreign Government or international organisation, the provisions relating to tax reliefs or
benefits shall take effect—
(a) upon the ratification of the agreement by Cabinet; and
(b) upon approval by Parliament.83
77. Priority of Schedules

Where a supply of goods or services may be covered by both the Second Schedule and the Third
Schedule, the supply shall be treated as being within the Third Schedule.
78. Regulations and Amendment of Schedules

(1) The Minister may make regulations for the better carrying into effect of the provisions and
purposes of this Act.
(2) The Minister may by Statutory Order specify the rates of tax payable under this Act; and the
Order shall cease to have effect unless it is introduced into Parliament within three months
from the date of its publication and Parliament approves a resolution confirming that Order.
(3) The Minister may, with the approval of Cabinet, make regulations amending the First,
Second and Third Schedules.
78A. Supremacy of the Act

Where there is any inconsistency between this Act and any other law prescribing a rate of tax,
this Act shall prevail.84
79. Practice Notes85
83
(3)
84
Inserted by Finance Act, 2001 & Repealed by TPC Act, 2014
85
Sections 79, 80 & 81 Inserted by VAT (Am) Act, 2005
80. Private Rulings
81. International Agreements86
FIRST SCHEDULE
Ss.1 & 45
Public International Organisations
African Development Bank (ADB)87
African Development Foundation (ADF)88
African Export – Import Bank89
African Trade Insurance Agency90
African Union (AU)91
Aga Khan Development Network, Uganda, and the following agencies:–92
86
Section 81 Repealed and Re-enacted as Section 76(3) by VAT (Am) Act, 2018
87
88
Inserted by Finance Act, 2001
89
90
91
92
(i) Aga Khan Foundation, Uganda;
(ii) Aga Khan Education Service, Uganda;
(iii) Aga Khan Health Service, Uganda;
(iv) Aga Khan Trust for Culture; and
(v) Aga Khan University, Uganda.
Austrian Development Agency (ADA)93
Belgian Technical Cooperation (BTC)94
Danish International Development Agency (DANIDA)95
Department for International Development (DFID)96
Desert Locust Control Organisation for Eastern Africa (DLCOEA)
Deutsche Geselleschaft fur Internationale Zusammenarbeit (GTZ)97
Common Market for East and Southern Africa (COMESA)98
East African Community (EAC) [and its agencies], its Organs and Institutions99
East African Development Bank (EADB)
Eastern and Southern Africa Management Institute (ESAMI)
European Union (EU)
Food and Agricultural Organisation (FAO)
French Development Agency (Agence Française de Development) (FDA)100
Global Fund to fight AIDS, Malaria and Tuberculosis101
Icelandic International Development Agency (ICEADA)102
IGAD Regional HIV and AIDS Partnership Programme (IRAPP)103
International Atomic Agency (IAA)
International Civil Aviation Organisation (ICAO)
International Committee of the Red Cross (ICRC)
93
94
95
96
97
98
99
Inserted by VAT (Am) Act, 2005 and substituted by VAT (Am) Act, 2013
100
Inserted by VAT (Am) Act, 2005 and substituted by VAT (Am) Act, 2013
101
102
103
International Criminal Court (ICC)104
International Labour Organisation (ILO)
International Monetary Fund (IMF)
International Organisation for Migration (IOM)105
International Telecommunications Union (ITU)
International Union for Conservation of Nature106
Islamic Development Bank107
Japan International [Development] Cooperation Agency (JICA)108
Korea International Cooperation Agency (KOICA)109
Kreditanstalt fur Wiederaufbau (KFW)110
Medical Research Council
Netherlands Development Organisation (SNV)
Nile Basin Initiative111
Norwegian Agency for Development Cooperation (NORAD)112
[Organisation of African Unity (OAU)]113
Swedish International Development Agency (SIDA)114
Uganda Red Cross Society115
Union of National Radio and Television Organisations of Africa (UNRTNA–PEC)
United Nations African Institute for the Prevention of Crime and the Treatment of Offenders
(UNAFRI)
United Nations Children’s Fund (UNICEF)
United Nations Development Programme (UNDP)
United Nations Fund for Population Activities (UNFPA)
United Nations High Commission for Refugees (UNHCR)
104
105
106
107
108
109
110
111
112
113
Repealed by VAT (Am) Act 2, 2008
114
115
United Nations Entity for Gender Equality and the Empowerment of Women (UN Women)116
United States Agency for International Development (USAID)
Universal Postal Union (UPU)
World Bank
World Food Programme (WFP)
World Health Organisation (WHO)
World Meteorological Organisation (WMO)
SECOND SCHEDULE
Section 19
Exempt Supplies
1. The following supplies are specified as exempt supplies for the purposes of Section 19 –
(a) the supply of livestock,117 unprocessed foodstuffs and unprocessed agricultural products,
except wheat grain118 [and livestock];
(b) the supply of postage stamps;
(c) the supply of financial services;
(d) the supply of - [insurance services]119
(i) health insurance services;
(ii) life insurance services;
(iii) micro insurance services;120
(iv)re-insurance services; and
(v) aircraft insurance services.121
(e) the supply of unimproved land;122
(f) a supply by way of sale, leasing or letting of immovable property, other than –123
(i) a sale, lease or letting of commercial premises;
(ii) a sale, lease or letting for parking or storing cars or other vehicles;
(iii) a sale, lease or letting of hotel or holiday accommodation [for periods not
exceeding three months];
(iv)a sale, lease or letting for periods not exceeding three months [parking or storing
cars or other vehicles]; or
116
117
118
Inserted by VAT (Am) Act, 2016 & VAT (Am) Act, 2017
119
(d)(i) & (ii) Substituted by VAT (Am) Act, 2014 WEF 7/2014
120
d)(iii) & (iv) Substituted by VAT (Am) Act, 2014 WEF 11/2014
121
122
123
(v) a sale, lease or letting of service apartments;124
(g) the supply of education services;
(h) the supply of veterinary,125 medical, dental and nursing services;
(i) the supply of social welfare services;
(j) the supply of betting, lotteries, and games of chance;126
(k) the supply of goods as part of the transfer of a business as a going concern by one taxable
person to another taxable person;
(l) Repealed;
(m)the supply of precious metals and other valuables to the Bank of Uganda for the State
Treasury;
(n) the supply of passenger transportation services (other than Tour and Travel operators);
(o) the supply of petroleum fuels subject to excise duty, (motor spirit, kerosene and gas oil),
spirit type jet fuel, kerosene type jet fuel127 and residual oils for use in thermal power
generation to the national grid;128
(p) the supply of milk, including milk treated in any way to preserve it;129
(q) the supply of dental, medical, and veterinary goods [equipment and ambulances]130 and
for the purposes of this subparagraph “goods” means-131
(i) dental, medical and veterinary equipment;
(ii) ambulances;
(iii) contraceptives of all forms;
(iv)maternity kits (mama kits);
(v) medical examination gloves;
(vi)medicated cotton wool;
(vii) mosquito nets, a caricides, insecticides and mosquito repellent devices;
(viii) diapers;
(ix)disposable medical face masks and reusable face masks made of fabric;132
(x) medical boots;
(xi)medical impermeable aprons/coverall suits;
(xii) bouffant non-woven surgical cap;
(xiii) protective goggles with indirect side ventilation;
(xiv) infra-red thermometers;
(xv) motorized fumigation pumps;
(xvi) oxygen cylinders;
(xvii) body bags;
(xviii) biohazard bags;
124
Supply of Residential Units was taxable at 5% from 7/2007 to 6/2009
125
126
Repealed by VAT (Am) Act, 2011 & Re-instated by VAT (Am) Act, 2012
127
128
129
130
131
132
Q(ix) – q(xxiv) Inserted by VAT (Am) (No. 2) Act, 2010 WEF 1/4/2020
(xix) container, used sharps, leak proof;
(xx) disinfectants or sanitisers;
(xxi) medical plastics or rubber gloves;
(xxii) gas masks with mechanical parts;
(xxiii) disposable hair nets; and
(xxiv) paper bed-sheets.
(qa) the supply of animal feeds and premixes;133
(qaa) the supply of raw materials and inputs for the manufacture of the following—134
(i) disposable medical face masks and reusable face masks made of fabric;
(ii) medical boots;
(iii) medical impermeable aprons/coverall suits;
(iv)cap, surgical, bouffant, non-woven;
(v) goggles, protective, indirect side ventilation;
(vi)infra-red thermometers;
(vii) motorized fumigation pumps;
(viii) oxygen cylinders;
(ix)body bags;
(x) biohazard bags;
(xi)container, used sharps, leak proof;
(xii) disinfectants;
(xiii) medical plastics or rubber gloves;
(xiv) gas masks with mechanical parts;
(xv) disposable hair nets; and
(xvi) paper bed-sheets.
(r) the supply of feeds for poultry and livestock;135
(s) the supply of machinery [used for processing of agricultural or dairy products],136 tools
and implements suitable for use only in agriculture, and for the purposes of this
subparagraph, “machinery, tools and implements” means;137
(i) knapsack sprayers;138
(ii) ox ploughs;
(iii) drinkers and feeders for chicken;
(iv)agricultural tractors (including walking tractors);
(v) disk harrows;
(vi)cultivators;
(vii) ploughs;
(viii) weeders;
133
134
(qaa) Inserted by VAT (Am) (No. 2) Act, 2020 WEF 1/4/2020
135
Inserted by Finance Act, 2001; Repealed by VAT (Am) Act, 2014
136
137
138
(i) – (xxiii) Inserted by VAT (Am) Act, 2014
(ix) seeders;
(x) planters;
(xi) subsoilers;
(xii) seed drills;
(xiii) threshers;
(xiv) bale wrappers;
(xv) milking machinery;
(xvi) milk coolers;
(xvii) maize mills;
(xviii) wheat flour mills;
(xix) homogenisers;
(xx) dairy machinery;
(xxi) grain cleaners and sorters;
(xxii) feed grinders hatcheries;
(xxiii) implements used for artificial insemination in animals;
(xxiv) hullers;139
(xxv) oil press;
(xxvi) tillers;
(xxvii) grain dryers;
(xxviii) manure spreaders;
(xxix) fertilizer distributor;
(xxx) transplanters;
(xxxi) juice presses and crushers;
(xxxii) seed and grain shellers;
(xxxiii) silage chopper machines;
(xxxiv) color sorters for coffee;
(xxxv) coffee roasters;
(xxxvi) rice mills;140
(xxxvii) agricultural sprayers.
(xxxviii) trailer for agricultural purposes;141
(xxxix) combine harvesters;
(xl)tractor mounted hay mowers, slashers, rakes and tedders; crop sprayers; hay and
straw balers; tractor mounted hole diggers or borers; tractor mounted scrapers,
levelling blades and dam scoops; root or tuber harvesting machinery; tractor
mounted loaders; irrigation equipment; drinkers and feeders for all farm animals;
tuber harvesting machinery.142
(sa) the supply of crop extension services;143
(sb) the supply of irrigation works, sprinklers and ready to use drip lines;
139
(xxiv) – (xxxv) Inserted by VAT (Am) Act, 2014
140
(xxxvi) & (xxxvii) Inserted by VAT (Am) Act, 2019
141
(xxxviii) – (xl) Inserted by VAT (Am) Act, 2020
142
143
(sa) – (se) Inserted by VAT (Am) Act, 2017
(sc) the supply of deep cycle batteries, composite lanterns, and raw materials for the
manufacture of deep cycle batteries and composite lanterns;
(sd) the supply of menstrual cups;
(se) the supply of Agricultural Insurance Premium or Policy;
(t) the supply of photosensitive semiconductor devices, including photovoltaic devices,
whether or not assembled in modules or made into panels; light emitting diodes; solar
water heaters, solar refrigerators and solar cookers.144
(ta) supply of power generated by solar;145
(u) the supply of accommodation in tourist lodges and hotels146 outside Kampala [and
Entebbe]147 District;148
(v) supply of new149
(i) computers
(ii) desktop printers; and
(iii) computer parts and accessories; [the supply of computers, printers, parts and
accessories falling under headings 874.71 and 84.73 of the harmonized coding
system of the Customs law]
(w) the supply of computer software and software licences;150
(x) the supply of lifejackets, lifesaving gear, headgear and speed governors;151
(y) the supply of Mobile toilets and Ekoloo toilets made from polythene;152
(z) the supply of mosquito nets,153 insecticides154 and acaricides;155
(aa) the supply of specialized vehicles, plant and machinery,156 feasibility studies,
engineering designs, consultancy services and civil works related to hydro-electric power,
roads and bridges construction,157 public158 water works,159 agriculture, education and
health sectors;160
(bb) the supply of contraceptive sheaths and examination gloves;161
(cc) the supply of Liquefied Petroleum Gas;162
144
Inserted by Finance Act, 2001 & Substituted by VAT (Am) Act 2005 & VAT (Am) Act, 2006
145
Inserted by VAT (Am) Act, 2011 & Repealed by VAT (Am) Act, 2016
146
(u) Added by VAT (Am) Act, 2002
147
148
Substituted by VAT (Am) Act 1, 2008; Repealed by VAT (Am) Act, 2014
149
Substituted by VAT (Am No. 2) Act, 2002; VAT (Am) Act 2005 & VAT (Am) Act 2, 2008; VAT (Am) Act
2009 &
150
Inserted by VAT (Am) Act, 2003; Substituted by VAT (Am) Act, 2010 & Repealed by VAT (Am) Act, 2014
151
Inserted by VAT (Am) Act, 2003 & Substituted by VAT (Am) Act, 2005
152
Inserted by VAT (Am) Act, 2003 & Deleted by VAT (Am) Act, 2005
153
154
(z) Inserted by VAT (Am) Act, 2003 & Repealed by VAT (Am) Act, 2014
155
156
157
(aa) Inserted by VAT (Am) Act, 2005 & Repealed by VAT (Am) Act, 2014
158
159
160
161
162
(dd) the supply of any goods and services to the contractor of Bujagaali hydro-electric
power project;163
(dda) the supply of any goods and services to the contractors and subcontractors of hydro-
electric power, solar power, geothermal power or bio gas and wind energy164
projects;165
(ee) the supply of drapers;166
(ff) the supply of salt;167
(gg) the supply of motor vehicles or trailers of a carrying capacity of 3.5 tonnes or
more designed for the transport of goods;168
(hh) the supply of packaging materials exclusively used by the milling industry for
packing milled products;169
(ii) the supply of packaging materials exclusively used by the dairy industry for packing
milk;170
(jj) the supply of biodegradable packing materials;171
(kk) the supply of water for domestic use excluding mineral water and aerated waters
which contain sweetening matter or flavour;172
(ll) the supply of Bibles and Qu’rans and text books;173
(mm) the supply of services to conduct a feasibility study, design and construction to a
developer of an industrial park or free zone whose investment is at least fifty [one
hundred] million United States Dollars;174
(nn) the supply of earth moving equipment and machinery for development of an
industrial park or free zone to a developer of an industrial park or free zone whose
investment is at least fifty [one hundred] million United States Dollars;175
(oo) the supply of construction materials for development of an industrial park or free
zone to a developer of an industrial park or free zone whose investment is at least fifty
[one hundred] million United States Dollars;176
(pp) supply of services to conduct a feasibility study and design; the supply of locally
produced materials for the construction of a factory or a warehouse and the supply of
locally produced raw materials and inputs or machinery or equipment, to an operator
within an industrial park, free zone or any other person carrying on business outside
the industrial park or free zone [to an operator who owns [with] a single factory or
163
Inserted by VAT (Am) Act 1, 2008 & Repealed by VAT (Am) Act, 2013
164
165
166
167
168
169
170
171
172
Inserted by VAT (Am) Act, 2012 WEF 1/10/2012 & Repealed by VAT (Am) Act, 2013
173
174
175
176
other business outside the industrial park or free zone] whose minimum investment
capital is ten million United States Dollars in the case of a foreigner or three hundred
thousand [one million] United States Dollars in case of a citizen; or one hundred fifty
thousand United States Dollars, for a citizen whose investment is placed upcountry
who uses at least seventy percent of the raw materials that are locally sourced, subject to
their availability and at least seventy percent of the employees are citizens earning an
aggregate wage of at least seventy percent of the total wage bill; and who —177
(i) processes agricultural goods;
(ii) manufactures or assembles medical appliances, medical sundries or
pharmaceuticals, building materials, automobile, house hold appliances;
(iii) manufactures furniture, pulp, paper, printing and publishing of
instructional materials;
(iv)establishes or operates vocational or technical institutes;
(v) carries out business in logistics and ware housing, information technology or
commercial farming; or
(vi)manufactures tyres, footwear, mattresses or toothpaste.”178
[who meets the following requirements –
(i) a minimum investment capital of fifteen million United States Dollars in
the case of a foreigner or ten million United States Dollars in the case of a citizen;
(ii) carries on business in agro processing, food processing, medical
appliances, building materials, light industry, automobile manufacturing and
assembly, household appliances, furniture, logistics and ware-housing,
information technology or commercial farming;
(iii) seventy percent of the raw materials used are sourced locally, subject to
their availability;
(i) directly employs a minimum 60 percent of citizens; and
(ii) provides for substitution of thirty percent of the value of imported
products;]179
(vii) manufactures chemicals for agricultural and industrial use, textiles,
glassware, leather products, industrial machinery and electrical equipment,
sanitary pads and diapers.180
(qq) the supply of services to conduct a feasibility study, design and construction; the
supply of locally produced materials for construction of premises, infrastructure,
machinery and equipment or furnishings and fittings which are not available on the local
market to a hotel or tourism facility developer whose investment capital is eight million
United States Dollars with a room capacity exceeding one hundred guests;181
(rr) the supply of services to conduct a feasibility study, design and construction; the supply
of locally produced materials for the construction of premises and other infrastructure,
177
178
179
180
Inserted by VAT (Am) (No. 2) Act, 2020 WEF 1/4/2020
181
machinery and equipment or furnishings and fittings to a hospital facility developer
whose investment capital is at least five million United States Dollars and who develops a
hospital at the level of a national referral hospital with capacity to provide specialised
medical care;182
(ss)the supply of movie production;183
(tt) the supply of wet processing operations and garmenting, cotton lint, artificial fibres for
blending; polyster staple fibre, viscose rayon fibre yam other than cotton yam, textile
dyes and chemicals garment accessories, textile machinery spare parts, industrial
consumables for textile production, textile manufacturing machinery and equipment;184
(uu) the supply of fabrics and garments made in Uganda by vertically integrated textile
mills that operate spinning, weaving/knitting, wet processing operations and
garmenting;185
(vv) the supply of services to conduct a feasibility study design and construction; the
machinery and equipment or furnishings and fittings which are not manufactured on the
local market to a hotel or tourism facility developer whose investment capital is ten
[fifteen]186 million United States Dollars [with a room capacity exceeding one hundred
guests]187 or to meetings, incentives, conferences and exhibition facility developer whose
investment capital is not less than Three Hundred Thousand United States Dollars.]188
(ww) the supply of all production inputs into iron ore smelting into billets and the
supply of billets for further value addition in Uganda;189
(xx) [the supply of all production inputs into limestone mining and processing into
clinker in Uganda and the supply of clinker for further value addition in Uganda;]190
(yy) the supply of all production inputs necessary for processing of hides and skins
into finished leather products in Uganda and the supply of leather products wholly made
in Uganda;191
(zz) the supply of services to conduct a feasibility study, design and construction, the
supply of locally produced materials for the construction of premises and other
infrastructure, machinery and equipment or furnishings or fittings for technical or
vocational institute operators whose investment capital is at least ten million United
States Dollars in the case of a foreigner or one million United States Dollars in the case
of a citizen;192
182
183
184
185
186
187
(vv) Inserted by VAT (Am) Act, 2018
188
Inserted by VAT (Am) (No. 2) Act, 2020 WEF 1/4/2020. Repealed by VAT (Am) Act, 2021
189
190
Inserted by VAT (Am) Act, 2018. Repealed by VAT (Am) Act, 2021
191
192
(aaa) the supply of imported drugs, medicines and medical sundries;193
(bbb) the supply of imported mathematical sets and geometry sets used in educational
services;194
(ccc) the supply of woodworking machines;195
(ddd) the supply of welding machines and sewing machines;196
(eee) supply of imported crayons, colored pencils, lead pencils, rulers, erasers, stencils,
technical drawing sets, educational computer tablets, educational computer applications
or laboratory chemicals for teaching science subjects used in educational services.197
(fff) supply of cotton seed cake;198
(ggg) the supply of the following services—
(i) software and equipment installation services to manufacturers;
(ii) services incidental to tele-medical services; and
(iii) royalties paid in respect of agricultural technologies;
(hhh) the supply of accommodation in tourist hotels and lodges located up-country;
(hhha) the supply of accommodation in tourist lodges and hotels inside a radius of 50
kilometers from the boundaries of Kampala, from 1st July, 2020 to 30th June,
2021;199
(hhhb) the supply of liquefied gas and denatured fuel ethanol from cassava;200
(iii) Repealed;
(jjj) the supply of processed milk;
(kkk) the supply of locally developed computer software, its maintenance and software
licenses;
(lll) [the supply of services to conduct a feasibility study, design and construction; the
machinery and equipment or furnishings and fittings which are not available on the local
market to a hotel or tourism facility developer whose investment capital is eight million
United States Dollars with a room capacity not exceeding 30 rooms; or to a meetings,
incentives, conferences and exhibitions facility developer whose investment capital is not
less than one million United States Dollars;]201
(mmm) the supply of services to a manufacturer, other than a manufacturer referred to in
subparagraph (pp) whose investment capital is at least thirty million United States Dollars
for a foreign investor or United States Dollars five million for a local investor, to conduct
a feasibility study or to undertake design and construction, or in the case of any other
manufacturer, from the date on which the manufacturer makes an additional investment
193
194
195
196
197
198
(fff) – (lll) Inserted by VAT (Am) Act, 2020
199
Inserted by VAT (Am) (No. 2) Act, 2020
200
201
Deleted by VAT (Am) (No. 2) Act 2020 WEF 1/4/2020
equivalent to thirty million United States Dollars for a foreign investor or five million
United States Dollars for a local investor—
(i) who has the capacity to use at least seventy percent of the raw materials that are
locally sourced, subject to their availability; and
(ii) who has the capacity to employ at least seventy percent of the employees that are
citizens earning an aggregate wage of at least seventy percent of the total wage
bill.202
2. In this Schedule –
(a) “education services” means education provided by –
(i) a pre-primary, primary, or secondary school;
(ii) a technical college or university;
(iii) an institution established for the promotion of adult education, vocational training,
technical education, or the education or training of physically or mentally
handicapped persons;
(b) “financial services” means –
(i) granting, negotiating, and dealing with loans, credit, credit guarantees, and any
security for money, including management of loans, credit, or credit guarantees
by the grantor;
(ii) transactions concerning deposit and current accounts, payments, transfers,
debts, foreign currency sales and purchases, cheques203 and negotiable
instruments, other than debt collection and factoring;
(iii) transactions relating to shares, stocks, bonds, and other securities, other
than custody services;
(iv)management of investment funds; but does not include provision of credit
facilities under a hire-purchase or finance lease agreement;
(c) “passenger transportation services” means the transportation of fare-paying passengers,
and their personal effects by road, rail, water, or air, but does not include passenger
transport services provided by a registered tour operator; and
(d) “social welfare services” means –
(i) care for the elderly, sick, and disabled, including care in a hospital, aged
person’s home, and similar establishments; or
(ii) care and welfare services provided for the benefit of minors.
(e) “transfer of a going concern” includes the disposal of any part of a business which is
capable of separate operation;
(f) insurance services include brokerage.204
(4) For the purposes of paragraph 1(a) of this Schedule, the term “unprocessed” includes low
value added activity such as sorting, drying, salting, filleting, husking, 205 deboning, freezing,
202
203
204
205
chilling, or bulk packaging, where, except in the case of packaging, 206 the value added does
not exceed 5% of the total value of the supply.
(5) Paragraph 1(aa) shall continue to apply to contracts that were entered into prior to its repeal
until the contracts are completed or are terminated.207
THIRD SCHEDULE
S.24(4)
Zero-Rated Supplies
1. The following supplies are specified for the purposes of Section 24(4) –
(a) a supply of goods or services where the goods or services are exported from Uganda as
part of the supply;
(b) the supply of international transport of goods or passengers and tickets for their
transport;208
(c) the supply of drugs, medicines and medical sundries manufactured in Uganda;209
(d) the supply of educational materials [and the supply of printing services for
educational materials];210
(e) the supply of seeds, fertilisers, pesticides, and hoes;
(f) the supply of cereals where the cereals are grown and milled [or produced] in Uganda;211
(g) the supply of machinery, tools and implements suitable for use only in agriculture;212
(h) the supply of milk, including milk treated in any way to preserve it;213
(ha) the supply of water, excluding mineral water and aerated waters containing sweetening
matter or flavoured;214
(i) the supply and installation of Mobilet Toilets, Ekoloo Toilets, and components made from
polythene with effect from 1st July 2004;215
(j) the supply of sanitary towels and tampons and inputs for their manufacture;216
(k) the supply of leased aircraft, aircraft engines, [spare engines] spare parts for aircraft,
aircraft maintenance equipment and repair services;217
206
207
208
Substituted by VAT (Am No.2) Act, 2002
209
210
Substituted by VAT (Am No.2) Act, 2002 & Repealed by VAT (Am) Act, 2014
211
Substituted by VAT (Am) Act, 2013; Repealed by VAT (Am) Act, 2014
212
Inserted by Finance Act, 2001; Repealed by VAT (Am) Act, 2014
213
Added by VAT (Am) Act, 2002; Repealed by VAT (Am) Act, 2014
214
215
216
Inserted by VAT (Am) Act, 2005; Substituted by VAT (Am) Act, 2009
217
Inserted by VAT (Am) Act 2, 2008; Substituted by VAT (Am) Act, 2021
(l) the supply of cereals, where the cereals are grown and milled in Uganda;218 and
(m) the supply of handling services provided by the National Medical Stores in respect of
medicines and other medical supplies, funded by donors.219
2. For the purposes of paragraph 1(a), goods or services are treated as exported from Uganda if
(a) in case of goods, the goods are delivered to, or made available at an address outside
Uganda as evidenced by documentary proof acceptable to the Commissioner General; or
(b) in the case of services, the services were supplied by a person engaged exclusively in
handling of goods for export at a port of exit or were supplied 220 for use or consumption
outside Uganda as evidenced by documentary proof acceptable to the Commissioner
General.
3. For the purposes of paragraph (1)(b), international transport of goods or passengers occurs
where goods or passengers are transported by road, rail, water, or air –
(a) from a place outside Uganda to another place outside Uganda where the transport or part
of the transport is across the territory of Uganda;
(b) from a place outside Uganda to a place in Uganda; or
(c) from a place in Uganda to a place outside Uganda.
4. In this Schedule –
(a) “educational materials” means locally produced materials whether printed or audio which
are suitable for use in public libraries or for educational services as defined in paragraph
(2)(a) of the Second Schedule to this Act, and which shall be prescribed by the Minister
by regulations; [“educational materials” means materials, whether printed or audio,
suitable for use only in public libraries and educational establishments specified in
paragraph 2 of the Second Schedule to this Act]221
(b) “pesticides” means insecticides, rodenticides, fungicides and herbicides but does not
include pesticides packaged for personal or domestic use.
FOURTH SCHEDULE
Ss. 24 - 30
Formulae, Tax Invoices, Credit Notes and Debit Notes
1. (a) For the purposes of Section 24(2), the following formula shall apply—
AxB
where,
A is the taxable value as determined under Section 21(2) or (3); and
B is the tax fraction.
218
Inserted by VAT (Am) Act 2, 2015 WEF 1/1/2015
219
Inserted by VAT (Am) Act 2, 2015 WEF 1/1/2015
220
221
Inserted by VAT (Am) Act, 2013; Substituted by VAT (Am) Act, 2018
(c) For the purposes of Section 25, the following formula shall apply —
X–Y
where,
X is the total of the tax payable in respect of taxable supplies made by the
taxable
person during the tax period; and
Y is the total credit allowed to the taxable person in the tax period under the
Act.
(c) For the purposes of Section 26(5), the following formula shall apply: —
S–T
where,
S is the total output tax received by the taxable person during the tax period in
respect of taxable supplies made by the person and
T is the total input tax credit allowed to the taxable person in the tax period
under the Act.
(d) For the purposes of Section 27(2), the following formula shall apply:—
M–N
where,
M is the total amount of input tax credited in relation to amounts due by the
taxable person at the time of change in the accounting basis; and
N is the total amount of output tax accounted for in relation to amounts due to
the taxable person at the time of change in the accounting basis.
(e) For the purposes of Section 27(3), the following formula shall apply—
O–P
where,
O is the total amount of output tax that would have been accounted for on
amounts due to the taxable person at the time of change in accounting basis
if
the taxable person had been accounting for tax on an invoice basis; and
P is the total amount of input tax that would have been credited on amounts
due
by a taxable person at the time of change in accounting basis if the taxable
person had been accounting for tax on an invoice basis.
(f) For the purposes of Section 28(7)(b), the following formula shall apply—
A x B/C
where,
A is the total amount of input tax for the period; and
B is the total amount of taxable supplies made by the taxable person during the
period; and
C is the total amount of all supplies made by the taxable person during the
period
other than an exempt supply under paragraph 1(k) of the Second Schedule.
2. A tax invoice as required by Section 29 shall, unless the Commissioner General provides
otherwise, contain the following particulars—
(a) the words “tax invoice” written in a prominent place;
(b) the commercial name, address, place of business, and the taxpayer identification and
VAT registration numbers of the taxable person making the supply;
(c) the commercial name, address, place of business, and the taxpayer identification number
and VAT registration number of the recipient of the taxable supply;
(d) the individualised serial number and the date on which the tax invoice is issued;
(e) a description of the goods or services supplied and the date on which the supply is made;
(f) the quantity or volume of the goods or services supplied;
(g) the rate of tax for each category of goods and services described in the invoice; and
(h) either—
(i) the total amount of the tax charged, the consideration for the supply exclusive of
tax and the consideration inclusive of tax; or
(ii) where the amount of tax charged is calculated under Section 24(2), the
consideration for the supply, a statement that it includes a charge in respect of the
tax and the rate at which the tax was charged.
3. A credit note as required by section 30 (1) shall, unless the Commissioner General provides
particulars otherwise, contain the following—
(a) the words “credit note” in a prominent place;
(b) the commercial name, address, place of business, and the taxpayer identification and
VAT registration numbers of the taxable person making the supply;
(c) the commercial name, address, place of business, and the taxpayer identification and
VAT registration numbers of the recipient of the taxable supply;
(d) the date on which the credit note was issued;
(e) the rate of tax; and
(f) either —
(i) the taxable value of the supply shown on the tax invoice, the correct amount of
the taxable value of the supply, the difference between those two amounts, and
the tax charged that relates to that difference; or
(ii) where the tax charged is calculated under Section 24(2), the amount of the
difference between the taxable value shown on the tax invoice and the correct
amount of the taxable value and a statement that the difference includes a charge
in respect of the tax;
(g) a brief explanation of the circumstances giving rise to the issuing of the credit note; and
(h) information sufficient to identify the taxable supply to which the credit note relates.
4. A debit note as required by Section 30(2) shall, unless the Commissioner General provides
otherwise, contain the following particulars –
(a) the words “debit note” in a prominent place;
(b) the commercial name, address, place of business, and the taxpayer identification and VAT
registration numbers of the taxable person making the supply;
(c) the commercial name, address, place of business, and the taxpayer identification and VAT
registration numbers of the recipient of the taxable supply;
(d) the date on which the debit note was issued;
(e) the rate of tax; and
(f) either—
(i) the taxable value of the supply shown on the tax invoice, the correct amount of the
taxable value of the supply, the difference between those two amounts, and the tax
charged that relates to that difference; or
(ii) where the tax charged is calculated under Section 24(2), the amount of the difference
between the taxable value shown on the tax invoice and the correct amount of the
taxable value and a statement that the difference includes a charge in respect of the
tax;
(g) a brief explanation of the circumstances giving rise to the issuing of the debit note;
(h) information sufficient to identify the taxable supply to which the debit note relates.
FIFTH SCHEDULE
Secs.43 & 65
Calculation of Interest Penalty

The rate of interest chargeable as penalty shall be 2% per month, compounded.
Cross References
 East African Customs and Transfer Tax Management Act, Laws of the Community, 1970
Revision, Cap. 27.
 East African Community Customs Management Act, 2004 (Act No.1 of 2005).
 Finance Act, 2000, Act 1/2001.
 Magistrates Courts Act, Cap. 16.
 Tax Appeals Tribunal Act, Cap. 345.
 Customs Tariff Act, Cap. 337.
THE VALUE ADDED TAX ACT.

Statutory Instrument 349—1.
The Value Added Tax Regulations.
Arrangement of Regulations.
Regulation
1. Citation.
2. Contracts entered into before and after 1st July, 1996.
3. Tax paid on capital goods and stock on hand.
4. Display of registration certificate.
5. New investors.
6. Tax on construction services.
7. Relief for diplomats, etc.
8. Records to be kept by a registered person.
9. Simplified tax invoices.
10. Treatment of cash-basis accounting taxpayer.
11. Export of goods.
12. Export of services.
13. Imported services.
14. Credit for input tax for persons making taxable and exempt supplies.
THE VALUE ADDED TAX ACT.

Statutory Instrument 349—1.
The Value Added Tax Regulations.

(Under section 78 of the Act.)
1. Citation.
These Regulations may be cited as the Value Added Tax Regulations.
2. Contracts entered into before and after 1st July, 1996.
(1) Where a contract was concluded between two or more parties before the 1st day of July,
1996, and no provision relating to tax was made in the contract, the supplier shall recover tax
due on any taxable supplies made under the contract after the 1st day of July, 1996.
(2) Where a contract concluded after the 1st day of July, 1996, does not include a provision
relating to tax, the contract price shall be deemed to include the tax and the supplier under the
contract shall account for the tax due.
3. Tax paid on capital goods and stock on hand.

Where, after the 1st day of July, 1996, a person being registered has in stock plant and
machinery and other goods on which tax was paid prior to being registered, that person shall be
entitled to claim a credit of the tax paid on goods which were purchased within four months
before the date of registration, and in the case of plant and machinery, within six months before
the date of registration.
4. Display of registration certificate.

A registered taxpayer shall display the registration certificate issued under the Act at his or her
principal place of business.
5. New investors.
(1) A person who is approved by the Uganda Investment Authority as an investor and who plans
to make taxable supplies in due course may apply to the Commissioner General to be
registered as an investment trader for a period not exceeding four years.
(2) A person shall not be registered as an investment trader unless that person gives to the
Commissioner General an undertaking and security that the Commissioner General may
require, guaranteeing the repayment of any tax refunded to that person, if that person does
not make any taxable supply within the period during which that person was registered as an
investment trader.
(3) An investment trader may claim input tax deduction in respect of expenditure on inputs,
whether imported or locally procured, relating to the planned taxable business activities, and
that trader shall be entitled to a refund of the input tax on those purchases.
(4) An investment trader shall abide by all the duties and obligations of a registered person,
including the keeping of proper books of account and the filing of regular returns.
(5) A person shall cease to be an investment trader immediately after making a taxable supply in
the course of business.
6. Tax on construction services.

(1) Where a taxable supply is building and construction services, tax shall be collected at each
stage of the work when an invoice is issued or when payment is received or becomes due,
whichever is the earliest, in respect of each stage completed.
(2) Where an invoice or a claim for payment by a contractor requires certification by an
architect, building consultant or other person, the invoice or claim shall not be effective for
tax purposes until it is certified as required, and the time of supply shall be the time of
certification; and for purposes of the tax any claim or invoice under this regulation shall be
certified within thirty days of the date of the invoice or claim.
(3) Where a contractor varies the cost of a contract during the course of execution, the variations
to the original contract shall be deemed to include tax, and the tax shall become due and
payable at the time payment is made for each stage completed.
7. Relief for diplomats, etc.

(1) The relief provided for under section 45 of the Act relating to diplomatic missions and
accredited personnel shall be administered as follows—
(a) in the case of imported goods and services, the diplomatic mission or accredited
personnel shall be exempted from tax; and
(b) in the case of services provided by the Uganda Electricity Board, the National Water and
Sewerage Corporation and the Uganda Posts and Telecommunications Corporation, the
diplomatic mission or accredited personnel shall be exempted from tax;
(c) in the case of other procurements, the tax shall be payable and the diplomatic missions or
accredited personnel entitled to relief may claim a refund of the tax paid on the following
conditions—
(i)the diplomatic mission or accredited personnel shall produce evidence of procurement
and of payment of the tax;
(ii) individual transactions of less than fifty thousand shillings, excluding tax, shall not be
eligible for a refund;
(iii) the total value of transactions for any claim period shall not be less than two hundred
thousand shillings, excluding tax; and
(iv) diplomatic missions or accredited personnel may be required to provide evidence of
entitlement to relief by producing the official card issued by the Ministry responsible for
foreign affairs.
(2) The relief provided under section 76 of the Act relating to public international organisations
in the First Schedule to the Act shall be administered as follows—
(a) the organisation may be required to provide evidence of entitlement to relief in terms of a
valid agreement with the Government of Uganda;
(b) the organisation shall be exempted from tax in the case of imported goods and services;
and
(c) in the case of locally procured goods and services, tax shall be payable and the
organisation entitled to relief may claim a refund of the tax on the following conditions—
(i) the organisation shall produce evidence of procurement and payment of tax;
(ii)individual transactions of less than fifty thousand shillings, excluding tax, shall not be
eligible for a refund; and
(iii) the total value of transactions for any claim period shall not be less than two hundred
thousand shillings, excluding tax.
(3) The Commissioner General may prescribe the forms to be used for refund claims and may
specify the frequency of submitting and processing claims in any individual case, which
frequency shall not be less than a month.
8. Records to be kept by a registered person.

(1) A registered person shall keep records and accounts of all supplies received or made by
that person in the course of business, including zero-rated and exempt supplies.
(2) For the purpose of accounting for input tax and output tax, the following records shall be
kept by a registered person—
(a) tax accounts and records, which shall include total output tax and input tax in each
period and net tax payable or the excess credit of tax refundable at the end of the tax
period;
(b) purchase records, showing details of all local purchases on which tax has been paid,
of all imports on which tax has been paid, and of all purchases made without payment
of tax, including original tax invoices for all local purchases from registered
suppliers, invoices for local purchases from unregistered suppliers and certified
customs entries of all imports;
(c) sales records showing exempt and taxable sales and, where tax is chargeable, the rates
of tax applicable for each sale, including copies of tax invoices and receipts issued in
respect of sales;
(d) export records showing details of goods and services exported from Uganda,
including, in the case of goods, certified copies of customs export documents and
evidence of exportation;
(e) debit and credit notes issued and received;
(f) cash records including cashbooks, petty cash vouchers and other accounts records
showing daily takings such as till rolls or copy receipts;
(g) computer records;
(h) in the case of a person making exempt and taxable supplies, details of input tax
calculations;
(i) transitional relief claims and all related documents and records; and
(j) stock records showing movements of goods into or out of stock including, in the case
of a manufacturer, manufacturing stock records.
(3) In addition to the records kept under subregulation (2) of this regulation, a registered
person with a taxable turnover exceeding one hundred million shillings per year shall
keep the following records—
(a) orders and delivery notes;
(b) relevant business correspondence;
(c) appointment and job books;
(d) annual accounts including trading, profit and loss accounts and balance sheet; and
(e) bank statements and pay-in-slips.
(4) All records shall be kept by the taxpayer for six years and shall be available to the
Commissioner General for audit or inspection if required.
9. Simplified tax invoices.
(1) Notwithstanding the basic requirements in respect of tax invoices, as specified in the
Fourth Schedule to the Act, registered persons with a taxable turnover below one hundred
million shillings per year may issue a simplified tax invoice for taxable supplies made to
another registered person, provided the value of any individual item on the invoice does
not exceed fifty thousand shillings and the total invoice does not exceed one hundred
thousand shillings.
(2) A simplified tax invoice shall contain the following particulars—
(a) the commercial name, address, taxpayer identification number and registration
number of the person making the supply;
(b) the date the invoice is issued;
(c) the description of the goods;
(d) the quantity of the goods; and
(e) the value of the supply inclusive of tax and a statement that tax is included in the
price.
(3) Zero-rated supplies and exempt supplies shall not be included on a simplified tax invoice.
10. Treatment of cash-basis accounting taxpayer.

(1) This regulation shall apply to registered persons whose annual taxable supplies do not
exceed one hundred million shillings.
(2) Where a registered person sells only goods liable at the positive rate of tax, sales may be
calculated on the basis of the daily gross takings recorded from the cash register or
cashbox and a sales daybook record, and any cash removed from the cash register or box
must be recorded and included in the daily gross takings total; then the output tax is
calculated by applying the tax fraction to the total of the daily gross takings for the tax
period.
(3) Where a registered person makes zero-rated or exempt supplies, in addition to supplies at
the positive rate, sales may be recorded on the basis of daily gross takings at each tax
rate, and the different tax categories shall be separately identified at the point of sale
either by means of a cash register or by keeping separate cashboxes for each category,
together with a sales daybook record, or in some other manner acceptable to the
Commissioner General; then the output tax is calculated by applying the tax fraction to
the total gross takings at the positive rate for the tax period.
11. Export of goods.

(1) Where goods are supplied by a registered taxpayer to a person in another country and the
goods are delivered by a registered taxpayer to a port of exit for export, the goods may be
invoiced at the zero rate, provided the registered taxpayer obtains the documentary proof set
out in this regulation and the goods are removed from Uganda within thirty days of delivery
to a port of exit.
(2) For an export transaction to qualify for zero rating, a registered taxpayer shall obtain and be
able to show as proof of export for every export transaction the following— (a) a copy of
the bill of entry or export certified by the customs authorities; (b) a copy of the invoice
issued to the foreign purchaser with tax shown at the zero rate; and (c) evidence sufficient
to satisfy the Commissioner General that the goods have been exported, in the form of an
order from, or signed contract with, a foreign purchaser, or transport documentation which
identifies the goods such as— (i) a transit order or consignment note issued by the Uganda
Railways Corporation for goods exported by rail; (ii) a copy of a bill of lading for goods
exported by water; (iii) a copy of an airway bill for goods exported by air; or (iv) a copy of
a transport document for goods exported by road.
12. Export of services.

Where services are supplied by a registered taxpayer to a person outside Uganda, the services
shall qualify for zero rating only if the taxpayer can show evidence that the services are used or
consumed outside Uganda, which evidence can be in the form of a contract with a foreign
purchaser and shall clearly specify the place of use or consumption of the service to be outside
Uganda or that the service is provided for a building or premises outside Uganda.
13. Imported services.
(1) A registered taxpayer who receives a supply of services from a foreign supplier shall account
for the tax due on the supply, and the taxpayer shall account for that tax when performance of
the service is completed, or when payment for the service is made, or when the invoice is
received from the foreign supplier, whichever is the earliest.
(2) The value for calculating the amount of tax payable under subregulation (1) of this regulation
shall be the total consideration paid to the foreign supplier; and the registered person
receiving the services shall apply the tax rate to the total consideration to calculate the tax
due, and he or she shall enter both the value and the tax calculated in his or her tax return.
(3) Tax accounted for on imported services may be claimed as a credit under section 28 of the
Act, provided the recipient of the service prepares a self-billed tax invoice to account for tax
due on the supply; the claim for credit is subject to the conditions specified in section 28 of
the Act.
14. Credit for input tax for persons making taxable and exempt supplies.
(1) Where a registered taxpayer who is making taxable and exempt supplies is disadvantaged by
the provisions of section 28(7)(b) of the Act, the Commissioner General may approve an
alternative method for calculating the input tax to be credited, as described in subregulations
(2) and (3) of this regulation, which shall be known as the standard alternative method.
(2) The registered taxpayer may directly attribute input tax separately to the exempt and taxable
supplies insofar as this is possible and may claim credit for all the input tax related to taxable
supplies and for none of the input tax related to exempt supplies.
(3) The balance of input tax which cannot be attributed to taxable or exempt supplies shall be
apportioned under the provisions of section 28(7) (b) of the Act; however, the provisions of
section 28(13) and (14) of the Act shall be complied with in respect of the no attributable
input tax.
(4) Where a registered taxpayer wishes to use the standard alternative method, or any other
method which is not provided for in section 28(7) (b) of the Act, that taxpayer must seek the
written approval of the Commissioner General.
History: S.I. 38/1996; S.I. 29/1999.
STATUTORY INSTRUMENTS
SUPPLEMENT No. 30 10th October, 2003
STATUTORY INSTRUMENTS SUPPLEMENT

to The Uganda Gazette No. 48 Volume XCVI dated 10th October, 2003
Printed by UPPC, Entebbe, by Order of the Government .
2003 No. 80.
The Value Added Tax (Amendment) Regulations, 2003. (Under section 82 of the Value Added
Tax Statute, Statute No. 8 of 1996).
IN EXERCISE of the powers conferred on the Minister by section 82 of the Value Added Tax
Statute, 1996, these Regulations are made this 25th day of June, 2003.
1. Citation and commencement.
(1) These Regulations may be cited as the Value Added Tax (Amendment) Regulations,
2003
(2) These Regulations shall come into force on 1st July, 2002.
2. Regulation 6 of S.I 38 of 1996 amended
The Value Added Tax Regulations, 1996 are amended in regulation 6(1) by repealing “for a
period not exceeding four years” and substituting the following—
“for a period of four years, renewable for another period of four years”.
GERALD M. SSENDAULA,
Minister of Finance, Planning and Economic Development.
SUPPLEMENT No. 14 29th June, 2007

to The Uganda Gazette No. 32 Volume C dated 29th June, 2007
Printed by UPPC, Entebbe, by Order of the Government.
2007 No. 26.

The Value Added Tax (Amendment) Regulations, 2007. (Under section 78 of the Value Added
Tax Act, Cap 349)
IN EXERCISE of the powers conferred upon the Minister by section 78 of the Value Added Tax
Act, these Regulations are made this 20th day of June, 2007.
1. Title and commencement.
(1) These Regulations may be cited as the Value Added Tax (Amendment) Regulations,
2007.
(2) These Regulations shall be deemed to have come into force on 1st January, 2005.
2. Amendment of S.I No. 349-1.
The Value Added Tax Regulations, are amended in regulation 5(1) by substituting “for a period
not exceeding four years” the following—
“for a period of four years, renewable for another period of four years and in the case of oil
exploration renewable for two periods of four years”
DR. EZRA SURUMA,

to The Uganda Gazette No. 29 Volume CII dated 19th June, 2009
STATUTORYINSTRUMENTS
2009 No. 30.
The Value Added Tax (Rate of Tax) (Revocation) Order 2009. (Under section 78 of the Value
Added Tax Act, Cap. 349)
IN EXERCISE of powers conferred upon the Minister by section 78 of the Valued Added Tax
Act, this Order is made this 11th day of June 2009.
1. Title.
This Order may be cited as the Value Added Tax (Rate of Tax) (Revocation) Order 2009.
2. Revocation.
The Value Added Tax (Rate of Tax Order) 2007 (S.I No.21 of 2007) is revoked.
SYDA N.M. BBUMBA (MP),

to The Uganda Gazette No. 43 Volume CIV dated 24th June, 2011
2011 No. 29.
THE VALUE ADDED TAX (AMENDMENT) REGULATIONS, 2011 ARRANGEMENT OF
REGULATIONS
Regulations
1. Commencement
2. Amendment of regulation 5
2011 No. 29
The Value Added Tax (Amendment) Regulations, 2011 (Under Section 78 of the Value Added
Tax Act, Cap. 349)
Act Cap. 349, these Regulations are made this 20th day of June, 2011.
1. Commencement
These Regulations shall come into force on 1st July, 2011.
2. Revocation of regulation 5
Regulation 5 of the Value Added Tax Regulations S.I 349-1 in these Regulations referred to as
the principal Regulations is revoked.
Regulation 7 (1)(b) of the principal Regulations is amended by substituting for “Uganda
Electricity Board, National Water and Sewerage Corporation and Uganda Post and
Telecommunications Corporation” the words “persons providing utility services”.
Regulation 11 of the principal Regulations is amended by inserting immediately after sub
regulation (1) the following—
“(1a) For the purposes of sub regulation (1) the Commissioner General may require goods for
export specified in a notice published in the Uganda Gazette to be distinctively labelled by the
registered taxpayer
(1b) The Commissioner General shall issue guidelines to specify the colour, nature, size and
type of labels refered to in sub regulation (1a).”
Regulation 13 of the Value Added Tax Regulations is amended—
(a) by substituting sub-regulation (1) with the following—
“(1) A person who receives imported services other than an exempt service shall account for
the tax due on the supply, and the taxpayer shall account for that service when performance
of the service is completed or when payment for the service is made or when the invoice is
received from the foreign supplier whichever is the earliest.”
(b) in sub-regulation (2)— (i) by substituting for “total consideration paid to the foreign
supplier” the words
“taxable value of the supply determined under section 21 of the VAT Act (Cap. 349)”; (ii)
by substituting for “registered” the word “taxable”; and (iii) by substituting for “total
consideration” the words “taxable value”; and (c) by substituting for sub-regulation (3) the
following—
“(3) If a taxable person carries on a business both in and outside Uganda and there is an
internal provision of services from the part outside Uganda to the part in Uganda, then, in
relation to those services, the following applies for the purposes of the VAT Act Cap. 349
and these Regulations—
(a) that part of the business carried on outside Uganda is treated as if it were carried on by a
person (referred to as the “overseas person”) separate from the taxable person;
(b) the overseas person is not a taxable person; and
(c) the internal provision of services is treated as a supply of services made outside Uganda
by the overseas person to the taxable person for reduced consideration.”
MARIA KIWANUKA,
No. 51.
THE VALUE ADDED TAX (RATE OF TAX) ORDER, 2005.
ARRANGEMENT OF RULES
Rules
1. Title.
2. Commencement.
3. Rate of tax.
4. Rate of tax not to apply to zero-rated goods.
2005 No. 51.
The Value Added Tax (Rate of Tax) Order, 2005. Under section 78 (2) of the Value Added Tax
Act, Cap.349)
In EXERCISE of the powers conferred upon the Minister by section 78 (2) of the Value Added
Tax Act, this Order is made this 8th day of June, 2005.
1. Title
This Order may be cited as the Value Added Tax (Rate of Tax) Order, 2005.
2. Commencement
This Order shall come into force on 1st July, 2005.
3. Rate of tax
The rate of tax for—
(a) every taxable supply made in Uganda by a taxable person;
(c) the supply of any imported services by any person, is 18% of the taxable value as defined in
sections 21 and 23 of the Act.
4. Rate of tax not to apply to zero-rated goods
The rate of tax prescribed in paragraph 3 does not apply to taxable supplies specified in the Third
Schedule of the Act, relating to zero-rated supplies.
DR. E. SURUMA,
SUPPLEMENT No. 16 30th June,
2006
to The Uganda Gazette No. 39 Volume XCVIX dated 30th June, 2006
2006 No. 29.
The Value Added Tax (Rate of Tax) Order 2006 (Under section 78 of the Value Added Tax Act,
Cap.349)
Act, this Order is made this 15th day of June, 2006.
1. Title
This Order may be cited as the Value Added Tax (Rate of Tax) Order 2006.
2. Commencement
This Order shall come into force on the 1st day of July 2005.
3. Rate of tax
The rate of tax for—
(a) every taxable supply made in Uganda by a taxable person;
(c) the supply of any imported services by any person, is 18% of the taxable value as defined
in sections 21 and 23 of the Act.
4. Rate of tax not to apply to zero-rated goods
The rate of tax prescribed in paragraph 3 does not apply to taxable supplies specified in the
Third Schedule to the Act.
DR. EZRA SURUMA,

to The Uganda Gazette No. 29 Volume CII dated 19th June, 2009
2009 No. 30.

The Value Added Tax (Rate of Tax) (Revocation) Order 2009. (Under section 78 of the Value
Added Tax Act, Cap. 349)
IN EXERCISE of powers conferred upon the Minister by section 78 of the Valued Added Tax
Act, this Order is made this 11th day of June 2009.
1. Title.
This Order may be cited as the Value Added Tax (Rate of Tax) (Revocation) Order 2009.
2. Revocation.
The Value Added Tax (Rate of Tax Order) 2007 (S.I No.21 of 2007) is revoked.
SYDA N.M. BBUMBA (MP),


to The Uganda Gazette No. 33 Volume CVI dated 28th June, 2013
2013 No. 28.
THE VALUE ADDED TAX (DEFERMENT OF TAX ON PLANT AND MACHINERY)
REGULATIONS, 2013.
ARRANGEMENT OF REGULATIONS
Regulation.
1. Title.
2. Commencement.
3. Interpretation.
4. Application for deferment.
5. Period of deferment.
6. Conditions for approval.
7. Sale of plant and machinery during or after the deferment period.
8. Inspection.
9. Termination of deferment.
10. Payment of tax due.
2013 No. 28.
The Value Added Tax (Deferment of Tax on Plant and Machinery) Regulations, 2013. (Under
section 34 (8) of the Value Added Tax Act Cap. 349)
IN EXERCISE of the powers conferred upon the Minister by section 34(8) of the Value Added
Tax Act, these Regulations are made this 28th day of June, 2013.
1. Title.
These Regulations may be cited as the Value Added Tax (Deferment of Tax on Plant and
Machinery) Regulations 2013.
2. Commencement.
These Regulations shall come into force on 1st July 2013.
3. Interpretation.
In these Regulations unless the context otherwise requires— “Act” means the Value Added Tax
Act; and “deferment” means postponement of payment of the value added tax under the Act in
respect of imported plant and machinery.
4. Application for deferment.
(1) An importer of plant and machinery may apply to the Commissioner General to defer the
payment of tax due in respect of imported plant and machinery.
(2) An application for deferment shall be in the form prescribed by the Commissioner General
and shall be accompanied with a declaration by the applicant that the goods are for use in the
business of the applicant and shall not be disposed of during the deferment period without
prior approval by the Commissioner General.
(3) Subject to regulation 5, the Commissioner General may if satisfied that the imported plant
and machinery is for use in the manufacture of goods or provision of value added services
defer the payment of the tax to a specified period.
(4) Where an application is in respect of phased importation of plant and machinery, the
application shall be accompanied with a schedule indicating the phases and the list of the
plant and machinery included in each phase.
5. Period of deferment.
(1) The period of deferment shall, in the case of—
(a) a person making taxable supplies, be fifteen days after the tax period;
(b) a person not yet making taxable supplies, be one year from the commencement of the
deferment; and
(c) of phased importations, be fifteen days after the tax period.
(2) A person under subsection 1(b) may apply for extension of time to the Commissioner
General not exceeding one year.
6. Conditions for approval.
(1) The Commissioner General shall not approve an application for deferment unless— (a)
the applicant is registered under Part III of the Act; (b) the plant and machinery in respect
of which the application is made is imported for use in the business of the applicant; (c)
the tax due and in respect of which a deferment is sought is at least USD 4,000; and (d)
the applicant has complied with section 31 of the Act.
(2) The Commissioner General may require the applicant to furnish security for the tax
proposed to be deferred before approving the deferment.
7. Sale of plant and machinery during or after the deferment period.

Where the plant and machinery that is the subject of deferment is sold, re- exported or disposed
of before or after expiry of the deferment period or utilized for any other purpose other than the
purpose declared in the application, the importer shall pay in addition to any tax for which he or
she is liable on such sale, re-export or disposal, the outstanding deferred amount and interest in
accordance with the VAT Act.
8. Inspection.
(1) The Commissioner General may at any time during the period of deferment, inspect the plant
and machinery specified in the application for deferment to ascertain whether it is duly
installed and utilised for the purpose specified in the application.
(2) Where the Commissioner General ascertains that the plant and machinery is installed or
utilised for the purpose specified in the application for deferment, the Commissioner General
shall allow the taxable person to cause adjustments to the respective returns to reflect that the
deferred tax has been accounted for.
9. Termination of deferment.
Deferment shall terminate—
(a) when the period of deferment specified in accordance with regulation 5 ends; or
(b) where the Commissioner General ascertains under regulation 8 that the imported
machinery is not installed or utilised for the purpose specified in the application.
10. Payment of tax due.
Where the period of deferment terminates in accordance with these Regulations, the tax due
shall become payable in accordance with the Act.
MATIA KASAIJA, (MP),

Minister of State for Finance, Planning and Economic Development (Planning), Also Holding
the Portfolio of Minister of Finance, Planning and Economic Development.

to The Uganda Gazette No. 33, Volume CXI, dated 29th June, 2018
2018 No. 35.
The Value Added Tax (Tax Withholding) Regulations, 2018 (Under section 78 of the Value
Added Tax Act Cap. 349)
IN EXERCISE of the powers conferred upon the Minister responsible for finance by section 78
of the Value Added Tax Act, these Regulations are made this 29th day of June, 2018.
1. Title.
These Regulations may be cited as the Value Added Tax (Tax Withholding) Regulations, 2018.
2. Commencement.
These Regulations shall come into force on the 1st day of July, 2018.
3. Interpretation.
In these Regulations, unless the context otherwise requires—
“Act” means the Value Added Tax, Cap. 349;
“tax withholding agent” means a person who is designated as such under a notice issued under
section 5(2) of the Act.
4. Record of payment.
A person designated a tax withholding agent shall, upon making a payment for a taxable supply
and deducting tax from the payment— (a) keep the records of the payment and the tax deduction
in a form and manner as the Commissioner may prescribe; and (b) furnish the supplier with an
acknowledgement of payment in a form as the Commissioner may prescribe.
5. Tax withholding agent to furnish return.
Where no tax is withheld during a period of three consecutive tax periods, the tax withholding
agent shall notify the Commissioner in writing stating that no tax was withheld in that period.
6. Taxable person to file returns.
For the avoidance of doubt, the withholding of tax by a tax withholding agent shall not relieve a
taxable person of any obligation to file returns in accordance with the Act.
7. Inspection of records.
For the purposes of obtaining full information in respect of accounting for tax withheld, the
Commissioner may require any person—
(a) to produce for examination, at such time and place as the Commissioner may specify,
records, books of accounts, documents and other records relating to calculation or
withholding of tax in respect of any period specified by the Commissioner;
(b) to attend at such time and place as the Commissioner may specify, for the purposes of being
questioned, in respect of any matter of transaction appearing to be relevant to the tax liability
of any person.
HON. MATIA KASAIJA,

Minister of Finance Planning and Economic Development.
LEGAL NOTICES
SUPPLEMENT No. 7 29th June, 2018.
LEGAL NOTICES SUPPLEMENT

to The Uganda Gazette No. 33, Volume CXI, dated 29th June, 2018.
Legal Notice No.12 of 2018.

THE VALUE ADDED TAX ACT, CAP. 349.
The Value Added Tax (Designation of Tax Withholding Agents) Notice, 2018.
(Under section 5(2) of the Value Added Tax Act, Cap. 349)
IN EXERCISE of the powers conferred upon the Minister responsible for finance by section
5(2) of the Value Added Tax Act, this Notice is issued this 29th day of June, 2018.
1. Title.
This Notice may be cited as the Value Added Tax (Designation of Tax Withholding Agents)
Notice, 2018.
2. Commencement.
This Notice shall come into force on the 1st day of July, 2018.
3. Designation of persons as tax withholding agents.
The persons specified in the Schedule to this Notice are designated as value added tax
withholding agents for purposes of section 5(2) of the Value Added Tax Act.
SCHEDULE
LIST OF DESIGNATED TAX WITHOLDING AGENTS

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LIST OF THE REGULATIONS MADE UNDER THE VALUE ADDED

TAX ACT CAP. 349

Commencement: 1st July 1996

PART VIIIA - OBJECTIONS AND APPEALS

PART IX—GENERAL PROVISIONS

First Schedule — Public international organizations

THE VALUE ADDED TAX ACT

PART II—CHARGE OF TAX

5. Person Liable to Pay Tax

PART III—TAXABLE PERSONS

7. Persons required or permitted to register

(4) The Commissioner General may cancel the registration of—

PART IV—SUPPLIES OF GOODS AND SERVICES

(3) The application of goods to own use is a supply of the goods.

11. Supply of Services

12. Mixed supplies

14. Time of Supply

15. Place of Supply of Goods

(5) In this section—

PART V—TAXABLE SUPPLIES

18. Taxable Supply

(8) Notwithstanding subsection (1) a supply of services by a foreign person for

19. Exempt Supply

PART VI—TAXABLE VALUE

(a) a taxable supply of goods by way of an application to own use;

PART VII—CALCULATION OF TAX PAYABLE

25. Calculation of Tax Payable by a Taxable Person for a Tax Period

26. Cash Basis Accounting

27. Consequences of a Change in Accounting Basis

28. Credit for Input Tax

29. Tax Invoices

30. Credit and Debit Notes

PART VIII—PROCEDURE AND ADMINISTRATION OF TAX

PART VIIIA—OBJECTIONS AND APPEALS63

34. Due Date for Payment of Tax64

35. Tax as a Debt Due to Government

41. Duties of Receivers

43. Refund of Tax for Bad Debts

44. Interest on Overpayments and Late Refunds

Records and Investigation Powers

50. Tax Identification Number

65. Penal Tax

66. Recovery of Penal Tax

67. Remission of Tax

PART IX—GENERAL PROVISIONS82

71. Application of Act to Partnerships and Unincorporated Associations

75. Schemes for obtaining Undue Tax Benefits

(2) In this Section—

76. International Agreements

77. Priority of Schedules

78. Regulations and Amendment of Schedules

78A. Supremacy of the Act

79. Practice Notes85

Formulae, Tax Invoices, Credit Notes and Debit Notes

Calculation of Interest Penalty

THE VALUE ADDED TAX ACT.

THE VALUE ADDED TAX ACT.

The Value Added Tax Regulations.

3. Tax paid on capital goods and stock on hand.

4. Display of registration certificate.