All
goods imported into Uganda are liable to VAT, except:
a. Goods within Schedule II of the VAT Statute (exempt supplies)
b. Schedule III of the VAT Statute (Zero-rated supplies)
WHO
HAS TO PAY VAT ON IMPORTED GOODS?
The importer regardless of whether the goods are private or for
business purposes, and whether or not the importer is registered
for Value Added Tax.
WHEN
DOES VAT HAVE TO BE PAID?
At the point of clearing the goods through the Customs department.
DO
I HAVE TO PAY THE VAT IF I AM REGISTERED FOR VAT?
Yes, you must pay the VAT that is due. However you should provide
your TIN and VAT Registration numbers on your Customs Bill of Entry
and declare if the goods imported are for your business. If they
are imported for taxable business purposes, you will be able to
claim a credit for the tax you have paid on your VAT Tax Return.
WHAT
IS THE VALUE ON WHICH I SHALL HAVE TO PAY VAT AT IMPORTATION?
The Value on which you will have to pay VAT is defined in the VAT
law as the CIF (cost, insurance and freight) value for customs duty
plus the customs duty plus any excise duty. The Customs Department
will advise you on the correct basis of value for VAT purposes.
ARE THERE ANY CASES WHERE VAT WILL NOT BE CHARGEABLE AT IMPORTATION?
Yes, in the case already mentioned where goods are within the exempt
category, (Schedule II of the VAT law), and where goods are within
the zero rated category, (Schedule III of the VAT law). (see leaflets
No. 4 & No. 5) which list the goods which are exempt from VAT
or liable at the zero rate. Private imports within the Customs Personal
Relief provisions also do not have to pay VAT, i.e imports which
qualify for conditional exemption.
ARE
THERE ANY PROVISIONS FOR DELAYING PAYMENT OF VAT?
Made a written application to the Commissioner General giving reasons
why you want to delay payment of VAT. In that case you can deposit
the goods in a Customs Bonded Warehouse and pay the VAT when you
account for the Customs Duty and take delivery of the goods from
the warehouse. However, there is a deferred VAT facility offered
to Importers.
DO
I HAVE TO PAY VAT ON GOODS IN TRANSIT IN UGANDA TO ANOTHER FOREIGN
COUNTRY?
No, but you will have to provide security to the Customs department
for the VAT due on the goods together with other duty or taxes.
This means that any bond or other security provided will have to
be sufficient to cover the amount of VAT due on those goods until
you are able to produce evidence of exit from Uganda.
HOW
DO I CLAIM THE VAT CREDIT FOR VAT PAID AT IMPORTS?
(i)
You must be a registered VAT taxpayer.
(ii)
The imports must be for your business and NOT for private use. Obtain
a copy of the customs bill of entry certified by the Customs department
as to the amount of VAT you have paid. Then enter this amount in
Box 8 on the VAT Return and claim it as a credit. REMEMBER TO RETAIN
A COPY OF THE CUSTOMS BILL OF ENTRY.
(iii)
Customs receipt for taxes paid (original copies)
(iv)
Customs amendment form if the figure on the receipt differs from
the figure on the customs bill of entry.
REMEMBER
THAT FAILURE TO PRODUCE A CUSTOMS CERTIFIED BILL OF ENTRY LEADS
TO YOUR VAT CREDIT CLAIM TO BE REJECTED.
IS VAT CHARGEABLE ON SERVICES IMPORTED FROM ABROAD?
If the supplier of the service conducts business in Uganda and is
registered for Value Added Tax, then VAT will have to be paid. If
the service is supplied by a foreigner who is not registered for
VAT in Uganda, then you must account for VAT yourself if you are
registered for VAT in Uganda.
WHEN
DO I ACCOUNT FOR VAT ON THESE SERVICES?
At the same time as you would account for the tax if you were supplying
the goods or services in Uganda i.e. at the time the service is
completed, or when the payment for the service is made, or when
the invoice is received from the foreign supplier.
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?
The Commissioner General may require you to register for VAT and
account for the tax if the value of the supplies you receive exceeds
Shs.12.5 million in any 3 months period.
HOW
DO I CLAIM A VAT CREDIT FOR VAT I HAVE PAID ON SUPPLIES OF SERVICES?
You must be registered for VAT in Uganda and the services received
must be for your taxable business activities. If the services are
supplied by a VAT registered person you must hold an original of
the tax invoice issued by that supplier. If you are accounting for
the tax from a foreign based supplier you must bill yourself on
your own tax invoice and retain this in your records as evidence
of tax due in box 13 of your VAT return and tax credit due in box
6 of your VAT Return.
CAN
I ALWAYS CLAIM A FULL CREDIT FOR VAT I AM CHARGED ON IMPORTED SERVICES?
You can only claim a credit if you are VAT registered and then you
can only claim a credit if the services are supplied for your taxable
business activities. (see 'WHAT CAN I CREDIT AS INPUT TAX?' for
guidance).
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