| Before VAT | VAT (18%) | After VAT |
|---|---|---|
| USh 100,000 | USh 18,000 | USh 118,000 |
| USh 500,000 | USh 90,000 | USh 590,000 |
| USh 1,000,000 | USh 180,000 | USh 1,180,000 |
| USh 5,000,000 | USh 900,000 | USh 5,900,000 |
| USh 10,000,000 | USh 1,800,000 | USh 11,800,000 |
| USh 50,000,000 | USh 9,000,000 | USh 59,000,000 |
Frequently Asked Questions about VAT in Uganda
What is the VAT rate in Uganda?
The standard VAT rate in Uganda is 18%. This is charged on most goods and services under the Value Added Tax Act, Cap 349. Some items are zero-rated (e.g. exports) or exempt (e.g. unprocessed foodstuffs, medical services, financial services, education).
How do I calculate VAT in Uganda?
To add VAT: multiply the price before VAT by 0.18 and add it to the original price. For example, UGX 1,000,000 × 0.18 = UGX 180,000 VAT, so the total is UGX 1,180,000. To remove VAT from a VAT-inclusive price: divide the total by 1.18. For example, UGX 1,180,000 ÷ 1.18 = UGX 1,000,000 before VAT.
Who must register for VAT in Uganda?
Any business or individual whose taxable supplies exceed UGX 150 million in any 12-month period, or who expects to exceed this threshold in the next 3 months, is required to register for VAT with the Uganda Revenue Authority (URA). Voluntary registration is also possible below this threshold.
What goods and services are VAT-exempt in Uganda?
Key VAT-exempt items in Uganda include: unprocessed foodstuffs (fresh fruit, vegetables, grains, milk), financial and insurance services, medical and dental services, educational services, public transport, agricultural inputs (seeds, fertilizers, pesticides), and the supply of land and residential buildings. The full list is in the Second Schedule of the VAT Act.
What is the difference between VAT-exempt and zero-rated in Uganda?
Zero-rated supplies (such as exports and international transport) are taxed at 0% VAT, but the supplier can still claim input VAT credits on their purchases. VAT-exempt supplies (such as education, medical services, and unprocessed food) have no VAT charged, and the supplier cannot claim input VAT credits. The distinction matters for businesses because zero-rating allows VAT recovery while exemption does not.
When are VAT returns due in Uganda?
VAT returns in Uganda are filed monthly. The return and any payment due must be submitted to URA by the 15th day of the month following the tax period. For example, VAT for March is due by 15 April. Late filing attracts penalties and interest.