What is VAT (Uganda)?
Value Added Tax on taxable supplies of goods and services in Uganda. The standard rate is 18%, with zero-rated and exempt supplies.
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Current Rate (Monthly. The return and the payment are due by the 15th of the following month.)
18% standard. Zero-rated supplies carry 0% with input tax recoverable. Exempt supplies carry no VAT and no recovery.
Example
A business sells UGX 50 million plus VAT of UGX 9 million and buys UGX 20 million plus VAT of UGX 3.6 million, backed by EFRIS invoices. It pays UGX 5.4 million by the 15th.
How VAT (Uganda) works in Uganda
Registration is compulsory above the threshold, which is UGX 300 million a year from 1 July 2026 (UGX 150 million before), or UGX 75 million in any three consecutive months. Input tax is claimed within six months of the invoice date and only with an EFRIS e-invoice or e-receipt.
AccountsOS summarises output and input VAT from the books each month. You file the return and pay on the URA portal.
Related terms
The level of annual taxable turnover above which a business must register for VAT with URA.
The Electronic Fiscal Receipting and Invoicing Solution run by URA. Every VAT-registered business, and non-VAT businesses in twelve gazetted sectors, must issue invoices and receipts through it.
Income tax deducted at source by the payer and paid to URA on the payee's behalf. The payee claims it as a credit against its own tax.
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