The rate
The standard rate in Uganda is 18%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
Compulsory above UGX 300 million of turnover a year, doubled from UGX 150 million by the VAT (Amendment) Act 2026 on 1 July 2026. Businesses now below the threshold may apply to deregister through the URA portal.
How to register
VAT registration is tested every quarter as well as every year. If your taxable sales in any three consecutive calendar months exceed a quarter of the annual threshold, you must apply within 20 days after those three months. If you expect to cross that level in the coming three months, as with a signed contract, apply at the start of that period. Government bodies register when they start any business activity.
Below the threshold you can register voluntarily if you have a fixed place of business, keep proper books, can file regular returns and are a fit and proper person in URA's view. URA checks the application before deciding. Registration starts on the first day of the month after the month you applied (voluntary), or after the month you should have applied (compulsory).
Once registered, you can claim input VAT on stock and capital goods bought up to six months before registration (twelve months for manufacturers). Registering late costs a penal tax of double the tax that was due while you were unregistered. A voluntary registrant cannot deregister for two years, and on deregistration you pay VAT on the market value of stock on which input tax was claimed.
Filing and paying
Registered and filed with Uganda Revenue Authority (URA).
Monthly returns are due by the 15th of the following month on the URA portal, with e-invoices issued through EFRIS.