What is VAT in Uganda?
Value Added Tax (VAT) is a consumption tax levied on the supply of taxable goods and services in Uganda at a standard rate of 18%, administered by URA under the Value Added Tax Act Cap 349.
Mandatory registration threshold: Any business with annual taxable turnover exceeding UGX 150 million must register for VAT. Below this threshold, voluntary registration is allowed.
VAT Rates Uganda 2026
| Category | Rate | Examples |
|---|---|---|
| Standard rate | 18% | Most goods, services, professional fees, construction |
| Zero-rated | 0% | Exported goods, agricultural inputs (seeds, fertilisers) |
| Exempt | No VAT | Medical services, educational services, financial services |
How to Register for VAT with URA
- Confirm annual taxable turnover meets or exceeds UGX 150 million
- Log in to URA eTax portal at efris.ura.go.ug
- Navigate to Registration then VAT Registration
- Complete the form with business details and estimated monthly turnover
- Submit — URA processes within 5 working days
- Receive VAT Certificate of Registration with your VAT number
Filing VAT Returns — Monthly Process
VAT returns must be filed monthly by the 15th of the following month. Log in to URA eTax, enter output tax charged on sales and input tax paid on purchases, calculate net payable, submit and pay by the 15th.
Common VAT Mistakes Uganda Businesses Make
- Not issuing proper VAT invoices showing your VAT number and VAT amount separately
- Claiming input tax on purchases used for exempt supplies
- Late registration — attracts backdated assessments plus penalties
- Not keeping VAT records for the required 5 years
💬 Need help with VAT registration or compliance in Uganda?
Basket Advisory provides tax advisory for businesses and NGOs — VAT registration, monthly filing, and URA compliance. Want to know more? Talk to our consultant.
📧 solutions@basketadvisory.com
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