Can I Claim Electricity and Water as a Business Expense in Uganda?
Yes for business premises. Electricity (including prepaid tokens) and water for business premises are deductible.
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What Uganda Revenue Authority (URA) says
Utilities used to run the business are allowable. A shared private and business supply is claimed for the business share only. Where the supplier must use EFRIS, the cost is deductible for income tax and the VAT recoverable only with an EFRIS e-invoice or e-receipt. Ask for the fiscal document number before you pay. When the supplier issues an EFRIS e-invoice or e-receipt, keep its fiscal document number (FDN) with the bill. Finn asks for it on purchases, because without it the cost may not be deductible and the VAT may not be recoverable.
When you can claim
- Electricity for an office, shop or factory
- Water for business premises
- Generator fuel for business premises
- Water and electricity at a warehouse or workshop
- Security lighting at business premises
- Garbage collection at business premises
- Water and power for a site office
- Electricity for machines in a workshop or factory
When you cannot claim
- Utilities at the owner's home with no business use
- Utilities for a director's house
- Generator fuel used at a private home
- Bills for a rented flat used by a director
Good to know
Pro tip: Buy prepaid electricity from the business account and keep the token receipt. Use one meter account per premises and keep it in the company's name. It keeps business and private use apart.
Important: Utilities paid for an employee's home may be a benefit; ask your payroll adviser. If the business runs from a home, agree a fair business share of the bills with your accountant, write down how it was worked out and apply it the same way each month.
Related expenses
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AccountsOS automatically categorises expenses with Uganda Revenue Authority (URA)-aware rules and tells you exactly what is claimable.
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