Who is eligible for VAT registration?

The following are some of the qualifying factors for VAT registration:

• Has a business or trading as an individual.
• Has made or expects to make taxable supplies whose taxable value is Kshs 5 million or more in any period of 12 months.

What is Value Added Tax?

VAT or Value Added Tax is a type of tax that is charged by the Central Government on the sale of services and goods to the consumers. VAT is paid by the producers of services and goods, but it is finally imposed on the consumers who purchase the services and goods when they pay for it.

How do I claim VAT in Uganda?

HOW TO APPLY

1. Log onto the Uganda Revenue Authority (URA) web portal Apply onlineusing your Log in ID and Password.
2. Search for the application form VAT return Form read through the instruction carefully and fill it accurately:Diplomat VAT return form.

What items are exempted from VAT?

Goods and services exempted from VAT are:

• Non-fee related financial services.
• Educational services provided by an approved educational institution.
• Residential rental accommodation, and.
• Public road and rail transport.

How much does your turnover have to be to register for VAT?

You must register for VAT if your VAT taxable turnover goes over £85,000 (the ‘threshold’), or you know that it will. Your VAT taxable turnover is the total of everything sold that is not VAT exempt. You can also register voluntarily.

Who is liable for VAT?

VAT is a multi-stage tax that is levied at each step of production of goods and services which involves sale/purchase. Any person earning an annual turnover of more than Rs. 5 lakh by supplying goods and services is liable to register for VAT payment.

What is Value Added Tax example?

A value-added tax (VAT) is a consumption tax that is levied on a product repeatedly at every point of sale at which value has been added. VAT is commonly expressed as a percentage of the total cost. For example, if a product costs $100 and there is a 15% VAT, the consumer pays $115 to the merchant.

Who pays VAT seller or buyer?

The seller charges VAT to the buyer, and the seller pays this VAT to the government. If, however, the purchasers are not the end users, but the goods or services purchased are costs to their business, the tax they have paid for such purchases can be deducted from the tax they charge to their customers.

How do I get tax exemption in Uganda?

1. Go to www.ura.go.ug and log in to your account with your TIN and password.
2. Under e-services,click on e-registration and then under “others” select.
3. Under Application Details,Select Application type from the drop down.
4. Enter your Tax payer Identification Number (TIN)
5. Select period of exemption from the drop down menu.

How do I get VAT refund?

How to get a VAT refund

1. Get a VAT 407 form from the retailer – they might ask for proof that you’re eligible, for example your passport.
2. Show the goods, the completed form and your receipts to customs at the point when you leave Northern Ireland or the EU.
3. Customs will approve your form if everything is in order.

Why is VAT not charged on basic goods?

The VAT Act provides for the supply of certain so-called basic foodstuffs to be zero rated. The reasoning behind this zero rating is to provide basic foodstuffs at a reduced price to benefit the poor.

What is the difference between exempt and zero rated VAT?

Zero-rated items are goods on which the Government charge VAT but the rate is currently set to zero. Exempt items are goods on which no VAT is paid or charged, but which still need to be recorded on the VAT Return.

What is Value Added Tax ( VAT ) in Uganda?

VAT is a tax on consumption. In Uganda, VAT is imposed on the supply of goods and services (taxable supplies) made by a taxable person, other than exempt supplies; and imports other than exempt imports.

What is the new tax rate in Uganda?

The bill proposes that a tax rate of 30% will now be applicable to individual persons earning rental income. The rate for other persons remains 30%. In the case of a partnership, the bill proposes that the tax be imposed on the individual partners.

What is the Tax Identification Number in Uganda?

Tax identification numbers can be verified with the Uganda Revenue Authority, and will follow a certain format. The VAT number format is 10-digit numeric tax identification number in the form of 1234567890.

When does the Uganda Tax Amendment Bill 2020 take effect?

On 31 March 2020, Uganda’s Minister of Finance Planning and Economic Development tabled Tax Amendment Bills, 2020 before Parliament for debate. Once passed into law by the Parliament and assented to by the President of the Republic of Uganda, the Bills will take effect from 1 July 2020.

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