VALUE ADDED TAX

Frequently Asked Questions.

  1. What is VAT? VAT is Value Added Tax in full. It is is a consumption tax added to a product/Service sales price. It represents a tax on the “value added” to the product/service throughout its distribution/provision process. 
  2. Which items attract VAT? The VAT law groups all products and services into 3 categories. The exempt items as stated in second schedule , the zero rated as stated in third schedule of VAT ACT of Uganda. Whatever is not exempt or zero rated is standard rated and attracts VAT at a rate of 18%
  3. Who pays VAT? VAT is paid by the final consumer of a product/service on which it is levied. it is paid by a person that can not pass it on to another person.
  4. Who accounts for VAT? VAT is accounted for by persons that sell taxable supplies, and importers of goods and services.
  5. What is the threshold for VAT registration? Currently, if your taxable sales in a period of 12 months amount to Ushs 150Million or Ushs 37.5 Million in 3 consecutive months, you are eligible to register for VAT. The above registration is based on historic performance. There is however registration based on futuristic projections. If you project to make 150million in next 12 months or Ushs37.5 million in next 3 months, you can apply to register on futuristic basis. There is a voluntary VAT registration which we will exhaust in our next blog regarding VAT.
  6. When do I register for VAT? If you sales hit the registration threshold, you are mandated to register in the next 20 days in the month following the one in which you hit the threshold.
  7. When is my effective date of VAT registration? Your Effective Date of Registration(EDR) for VAT will be the first date of the month following the month in which you applied for registration. However, your effective date of Registration may be back dated by a Uganda Revenue Authority officer to a day he /she sees fit.
  8. How and when do I file VAT returns? VAT returns are filed monthly. The return must be filed on or before the 15th date of the month following the month for which VAT is being accounted. For more information regarding VAT registration, filing, assessments/objections, reconciliations and training, please contact us on +256701228058 , Email: customercare@elitebestbusiness.com, or visit our website:www.elitebestbusiness.com