Uganda VAT compliance changes

Thu 8th Sep 2011

The Uganda VAT law has been changed to increase the levy on services purchased from outside the country.

The reverse charge rules previously meant resident companies buying services or consulting services from non-resident enterprises could account for any VAT on the reverse charge mechanism. This included raising a self-assessment invoice for 18% VAT. This charge was shown as both and input and output in the VAT records, as so had no cash impact.

This procedure has now been withdrawn. This means local companies can no longer claim back any VAT incurred on imported services.