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Guide · Uganda · Published 2026-10-11

VAT in Uganda: rate, registration and filing

VAT in Uganda: the 18% standard rate, who must register, what a VAT invoice must show, and when returns and payments are due.

  • USh UGX
  • VAT 18%
  • TIN
  • A4
  • English

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.

Sources

How this guide was made

Written from published tax-authority guidance and reviewed on 2026-10-11. Everything here is indicative rather than a ruling on your circumstances, and rules change. Confirm anything you rely on with Uganda Revenue Authority (URA) before acting on it, and tell us if you find something out of date so we can correct it.

This guide explains the rules in general terms and is not tax advice for your circumstances. Confirm your position with a qualified adviser or with Uganda Revenue Authority (URA).