VALUE ADDED TAX

1.00 INTRODUCTION

This booklet is a compilation of VAT leaflets on the broad fifteen areas that are of particular interest to the taxpayer. It acts as a guide for easy compliance with the Value Added Tax (VAT) law in Uganda but does not become a substitute for the substantive law. Never-the-less, extreme care has been taken to ensure that the booklet provides maximum guidance to the reader on VAT in Uganda. This particular edition had been revised to incorporate all relevant changes in law and administration of VAT in Uganda up to 2005/2006 financial year.

1.1 TABLE OF CONTENTS

A BRIEF EXPLANATION OF VALUE ADDED TAX

1.00 Introduction
1.01 What is Value Added Tax?
1.02 What is output Tax?
1.03 What are taxable supplies?
1.04 What are the rates of VAT?
1.05 Are there other kinds of supplies?
1.06 How do I know if my supplies are exempt or zero rated?
1.07 what is the difference between exempt and zero-rated supplies?
1.08 what other taxable supplies may be liable to VAT?
1.09 Do I still have to account for VAT if no money is paid?

2. REGISTRATION GUIDE

2.01 Who has to be registered for VAT?
2.02 How do I work out whether I have to be registered or not?
2.03 How do I become liable to register?
2.04 How do I calculate my turnover?
2.05 Can I be registered if my turnover is below the limit?
2.06 What factors do I have to consider in deciding whether to apply for registration
or not?
2.07 I want to register voluntarily, can Uganda Revenue Authority refuse to register me?
2.08 Can I register before I commence business?
2.09 What about any VAT I pay before I register?
2.10 When do I start to charge VAT?
2.11 What records do I need to keep for VAT purposes?
2.12 What about my VAT returns?

3. ZERO RATED GOODS AND SERVICES

3.01 What are Zero-rated supplies?
3.02 Zero-rated supplies include

4. EXEMPT GOODS AND SERVICES

4.01 Exempt supplies under VAT include

5. WHAT CAN I CREDIT AS INPUT TAX?

5.01 What is input tax?
5.02 Can I always get back my input Tax?
5.03 What if I make both Taxable and Exempt Supplies?
5.04 How do I calculate the amount of Input Tax which I can claim as credit if I make both
Taxable and Exempt Supplies?
5.05 This is known as the standard alternative method of calculating creditable Input Tax
5.06 What proof do I need to claim a credit for Input Tax?
5.07 How do I claim my input Tax Credit?
5.08 Can I use any other method for calculating creditable Input Tax?

6. FILLING IN YOUR VAT RETURN

6.01 Check list

7. ACCOUNTS AND RECORDS

7.01 Display of Registration Certificate
7.02 What records should I keep

8. SMALL VAT TAXPAYERS

8.01 What provisions have been made to assist the small taxpayer to account for VAT?
8.02 What does Accounting for VAT on a cash basis mean?
8.03 What are the advantages and disadvantages of cash accounting?
8.04 What do I do if I decide to use the cash accounting method?
8.05 What are the conditions for using simplified Tax Invoices?
8.06 If all my sales are standard rated, how does this scheme work?
8.07 If I made sales at the standard rate, zero-rated and exempt from Tax, how do
I account for VAT?

9. VALUE ADDED TAX ON IMPORT

9.01 Is VAT chargeable on imported goods?
9.02 Who has to pay VAT on imported goods?
9.03 When does VAT have to be paid?
9.04 Do I have to pay the VAT if I am registered for VAT?
9.05 What is the value on which I shall have to pay VAT at importation?
9.06 Are there any cases where VAT will not be chargeable at importation?
9.07 Are there any provisions for delaying payment of VAT?
9.08 Do I have to pay VAT on goods in transit from Uganda to another foreign country?
9.09 How do I claim the VAT credit for VAT paid on imports?
9.10 Is VAT chargeable on services imported from abroad?
9.11 When do I account for VAT on these services?
9.12 If I am not registered for VAT in Uganda do I have to account for VAT on services supplied by foreign suppliers not registered for VAT in Uganda?
9.13 How do I claim a VAT credit for VAT I have paid on supplies of services?
9.14 Can I always claim a full credit for VAT I am charged on imported services?

10. VALUE ADDED TAX ON EXPORTS

10.01 Are exports subject to Value Added Tax?
10.02 What does this mean in practice?
10.03 Why should I register for VAT if I only export?
10.04 What do I have to do, to claim VAT refund on Exports of goods?
10.05 What about the Export of Services?

11. CAN I CANCEL MY REGISTRATION

11.01 When must I cancel my registration?
11.02 When can I ask to have my registration cancelled?
11.03 Are there any disadvantages for cancellation?
11.04 Can I still issue Tax Invoices?
11.05 Can I reclaim any VAT I am charged after cancellation of my registration?
11.06 What about stock and assets on land at the time of cancellation of my registration?
11.07 Do I still need to keep my VAT records?
11.08 What if I make exempt on Taxable supplies?
11.09 What happens if I apply to cancel my VAT Registration?

12. INVESTMENT TRADER

12.01 Who is an Investment Trader under VAT?
12.02 What has this to do with VAT?
12.03 What can I do to recover this VAT?
12.04 What action must I take?
12.05 What are the conditions for VAT Registration as an Investment Trader?
12.06 Are there any restrictions on re-claiming the tax I am charged ?
12.07 How do I cease being registered as an Investment Trader?

13. AGENTS Vs THEIR PRINCIPALS

13.01 How are Agents affected by VAT?
13.02 Who must register for VAT in an Agency situation
13.03 How does a principal issue invoices in a VAT system?
13.04 How does an agent issue invoices in a VAT system
13.05 How does the principal calculate the Value for Tax?
13.06 How does the Agent calculate the Value for Tax?
13.07 Can a principal claim credit for Input Tax?
13.08 What credit for Input Tax can an Agent claim?
13.09 What happens when a tenant does not pay the rent due?

14. CALCULATION VAT IN A SIMPLIFIED WAY

15. DOMESTIC VAT

15.01 What is Domestic VAT?
15.02 When did Domestic VAT come into effect?
15.03 Who has to pay domestic VAT?
15.04 When is domestic VAT paid?
15.05 If I am VAT registered, do I pay domestic VAT?
15.06 If I am VAT registered, can I de-register and pay only domestic VAT?

<< Back to Regulations