How to Prepare a VAT Return in Uganda — Step by Step Guide 2026

Value Added Tax (VAT) in Uganda is administered by the Uganda Revenue Authority (URA). If your business is VAT-registered, you must file a VAT return every month by the 15th of the following month. This guide walks you through everything Uganda business owners need to know about VAT returns in 2026.

Uganda VAT — The Basics

• Standard VAT rate: 18%
• Zero-rated: Exports, certain agricultural inputs, selected medical supplies
• Exempt: Financial services, educational services, certain food items
• VAT registration threshold: UGX 150,000,000 annual taxable turnover
• Filing deadline: 15th of every month for the previous month
• Filing platform: URA eTax portal — efris.ura.go.ug

Who Must Register for VAT in Uganda

Your business must register for VAT with URA if:

• Your annual taxable turnover exceeds UGX 150,000,000
• You reasonably expect your turnover to exceed UGX 150,000,000 in the next 12 months
• You are a non-resident supplying digital services to Uganda customers

Businesses below the threshold can voluntarily register for VAT, which is often beneficial if your clients are VAT-registered businesses who can reclaim input VAT.

Step by Step — Preparing Your Uganda VAT Return

Step 1: Gather All Sales Invoices

Collect every tax invoice you issued during the month. For each invoice, you need: the customer name and TIN, invoice date, taxable value, VAT charged (18%), and total amount. VAT-registered businesses in Uganda are required to issue EFRIs (Electronic Fiscal Receipts and Invoices) through the URA EFRIS system.

Step 2: Gather All Purchase Invoices (Input Tax)

Collect every supplier invoice you received during the month where VAT was charged. This is your input tax — the VAT you have paid which you can deduct from your output tax. Only purchases made for business purposes qualify for input tax credit.

Step 3: Calculate Output Tax

Output tax is the VAT you charged on your sales. Add up the VAT column on all your sales invoices. At 18%, a sale of UGX 1,000,000 generates output tax of UGX 180,000.

Step 4: Calculate Input Tax

Input tax is the VAT you paid on your purchases. Add up the VAT column on all qualifying purchase invoices received during the month.

Step 5: Calculate VAT Payable

VAT Payable = Output Tax − Input Tax

If output tax exceeds input tax — you owe URA this amount. If input tax exceeds output tax — you have excess input tax that can be carried forward or refunded.

Step 6: File on URA eTax by the 15th

Log in to efris.ura.go.ug, navigate to VAT returns, enter your output tax, input tax, and supporting transaction details. Pay any VAT due via URA payment channels before the 15th.

How Basket Books Automates Uganda VAT

Basket Books tracks Uganda VAT automatically:

• Every invoice you create with VAT enabled automatically records output tax
• Every expense you enter records input tax by category
• The P&L report shows VAT collected and VAT liability separately
• Monthly VAT summary gives you the exact figures for your URA return

Instead of manually adding up invoices at month end, Basket Books has your VAT figures ready on the 1st of every month — giving you 14 days to review and file.