FILLING IN YOUR VAT RETURN

FILLING IN YOUR VAT RETURN

6.01 CHECK LIST

BOX 1 Fill in your TIN & VAT REGISTRATION NUMBER from your Certificate of Registration.

BOX 2 Complete the dates as appropriate.

BOX 3 Make sure the name / address entered as the same as on the Certificate of Registration

BOX 4 Remember to include the value of all purchases on which a VAT credit cannot be claimed. This should include:-

? purchases at the zero-rate

? purchases exempt from VAT

?? purchases from a person not registered for VAT or where you do not possess an original Tax Invoice.

? purchases of a passenger automobile and the repair and maintenance thereof unless you are in the business of dealing in or hiring such vehicles.

?? purchases of entertainment unless you are in the business of providing entertainment.

? imports on which you have not paid VAT or where you do not possess a certified Customs Bill of Entry.

? purchases related to exempt sales [ SEE VAT No. 7 – VAT ACCOUNTS AND RECORDS
? ]
BOX 5 Enter the value of all goods and services you have purchased in Uganda during the month on which you have been charged VAT and the value of any imported services on which you self assessed the VAT due ON WHICH YOU ARE CLAIMING INPUT TAX CREDIT.

BOX 6 Enter the amount of VAT which you are claiming as INPUT TAX. If you have made no EXEMPT supplies and the entry in BOX 10 is NIL you should enter all the VAT you have been charged for your business in the month EXCEPT VAT on the exempt supplies. This should also include VAT you have self assessed on any imported services.

If you have declared a value for EXEMPT supplies in BOX 10 you will have to calculate the amount of input tax you can claim in BOX 6. See VAT 7.

BOX 7Enter the value of all your imports during the month, on which you have paid VAT and for which you hold a certified Customs Bill of Entry. Only the Customs Entry value (CIF) should be included not the VAT.

BOX 8 Enter the amount of VAT paid at importation which you are claiming as INPUT TAX. If you have made no EXEMPT supplies such that the entry in BOX 10 is NIL, you should enter all the VAT you have paid on your imports in the month. But do not include the VAT on passenger automobiles (unless you are in the business of dealing in or hiring of such automobiles).

If you have declared a value for EXEMPT supplies in BOX 10 you will have to calculate the amount of input tax you can claim in BOX 8. (See VAT 7 –Accounts and Records)

BOX 9 Enter the total of boxes 6 & 8. This is your total INPUT TAX for the month.

BOX 10 Enter the total value of all EXEMPT supplies made during the month. See VAT 5 (What can I credit as Input Tax)

BOX 11 Enter the total value of all goods and services that you have supplied during the month at the zero-rate. See VAT 4 ( Exempt goods and Services)

BOX 12 Enter the value of goods and services that you have supplied during the month at the standard rate of tax. Do not include the VAT, or the value of Zero-Rate sales which should be entered in BOX 12. If the value of your sales is inclusive of VAT you must separate the VAT by the use of the VAT fraction. The tax element must be included in BOX 13. You should also include the value of any imported services you have received on which you have self assessed the VAT due.

BOX 13 Enter the total amount of VAT on your taxable supplies at the standard rate during the month. You must include all the VAT due on your sales and the VAT you have self assessed on imported services and include the tax due on goods you have taken from the business for your own use including gifts. This is your OUTPUT TAX.

BOX 14 Must be completed if your OUTPUT TAX exceeds the INPUT TAX, if not insert Nil. Otherwise deduct the amount in Box 9 from the amount in Box 13 i.e box 13 - box 9 to get the VAT which should be remitted to URA.

BOX 15 Must be completed if your INPUT TAX exceeds your OUTPUT TAX, if not insert NIL. Otherwise deduct the amount in Box 13 from the amount in Box 9 to get the VAT refund which should be claim from URA.

BOX 16 Must be completed if you had previously submitted a return and in the last return you submitted you had a VAT claim - INPUT TAX exceeded OUTPUT TAX. Enter or bring forward the amount of VAT in Box 15 of last month’s return into Box 16 of the return you are now due to submit. Otherwise insert NIL if you had no VAT claim in last month’s return..

BOX 17 Must be completed if in the return you are now due to submit you have a VAT payment to make (OUTPUT TAX exceed INPUT TAX) and the payment you are to make exceeds the VAT claim or VAT offset brought forward from last month’s return. Deduct the VAT amount in Box 16 from the VAT amount in Box 14 to get the VAT you are to pay i.e Box 14 - Box 16 = Box 17.

BOX 18 Must be completed if:-
?You have a VAT claim or VAT offset brought forward from last month’s return and in the return you are now due to submit you also have a VAT claim. Add the VAT amount in Box 15 and VAT amount in Box 16 to get the outstanding VAT claim i.e Box 15 + Box 16 = Box 18.

?OR you have a VAT claim or VAT offset brought forward from last month’s return but you have a payment to make in the return you are now due to submit which is less than the VAT claim or VAT offset brought forward.

Deduct the VAT amount in Box 14 from the VAT amount in Box 16 to get the outstanding VAT claim i.e Box 16 - Box 14 = Box 18.
?Offset returns shall attach schedules of input tax and make available on demand corresponding tax invoices supporting the offset claim. Otherwise insert NIL if you have no outstanding claim.

No offset return will be accepted without such attachments.

BOX 19 Indicate by a tick your option in what form you would like your VAT claim either as on offset or a refund in cash.

NOTE THAT YOU CAN ONLY OPT FOR A CASH REFUND IF YOUR VAT CLAIM IS 5 MILLION SHILLINGS AND ABOVE. IF YOU ARE IN INVESTMENT TRADER (VAT 12 - Investment Trader) OR YOU ARE MAKING ZERO RATED SUPPLIES, YOU CAN OPT FOR A CASH REFUND IF YOU VAT CLAIM IS BELOW 5 MILLION.

BOX 20 Enter the name of the person who has prepared the VAT Return. This same person must endorse this return with his/her signature and the date of signing the Return. Please note that this box must be completed. The VAT Return is a legal declaration and so care has to be exercised. In case of a sole proprietorship, it is the sole trader to endorse the Return. In case of a sole proprietorship, it is the sole trader to endorse the Return. In case of other legal bodies, it must be a responsible officer to endorse the VAT Return.

FINALLY

• Check that every box is completed / filled.
• Ensure you have signed and dated the return.
• If you make a mistake cross the figure out and sign it with your initials and insert the correct figure.
• If anything on the return requires an explanation, write a separate letter and send it to the VAT Office with the return.

REMEMBER

Visit the VAT Office and collect bank payment advices where tax is due, so that the tax can be paid at the authorized bank and the VAT return filed at the VAT Office by the 15th day of the month following the month for which the return has been completed.

YOU WILL BE PENALIZED ON TOP OF INCURRING AN INTEREST, FOR FAILING TO SUBMIT THE VAT RETURNS - EVEN IF TI IS A NIL RETURN, IN T IME. i.e. BY T HE 15TH DAY OF THE FOLLOWING MONTH. THE SAME TREATMENT WILL BE GIVEN IN CASE OF FAILURE TO PAY THE DUE TAX AT THE BANK BY THE SAME DATE.

ALSO NOTE THAT WHERE FALSE DECLARATION ARE MADE, THE PENALTIES WILL BE VERY SEVERE.

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