The scope of persons liable to pay VAT has been expanded to include recipients of the proceeds of the auction where goods are supplied through auction.

These recipients will be treated as the suppliers of the goods that are auctioned. Taxable supplies have also been expanded to include supplies of goods or services by employers who are taxable persons to their employees for no consideration.

These supplies are to be regarded as supplies of goods or services for consideration as part of the employer’s business activities. The threshold for VAT refund claims has been increased to UGX 10 million from the previous 5 million.

The supply of locally manufactured electric vehicles; frames and bodies of locally fabricated electric vehicles; electric vehicle charging equipment, charging services of electric vehicles, supply of cooking stoves assembled in Uganda that use fuel ethanol are exempt from VAT.

The supply of postage stamps, software and equipment installation services to manufacturers will attract VAT at a rate of 18%

Good to Know:

• All VAT registered clients are expected to issue e-invoices through the EFRIS smart application.

• All VAT registered clients are expected to submit a monthly VAT return by the 15th day of the following month.