Uganda widens Value Added Tax net

Sat 20th Sep 2014

Uganda’s recent 2014/15 budget has brought in a range of goods into the Value Added Tax net and extended the number of goods which are nil rated.  The changes will hit agriculture, insurance and tourism.

Reclassification from nil VAT

The following supplies of goods are to be reclassified from nil rated to the standard Value Added Tax rate:

  • Agricultural machinery
  • Milk products
  • Educational printing services
  • Basic agricultural tools, seeds, fertilizers and pesticides

Removal of VAT exemptions

The following goods will no longer benefit from a VAT exemption, and will be subject to VAT at the standard rate of 18%:

  • Hotel accommodation
  • Non-Life Insurance premiums, excluding medical
  • Education and health services
  • Office and home computers, peripherals and software
  • Livestock foodstuffs and agricultural machinery
  • Imports of plant for public road, agricultural and water works
  • Liquid Petroleum Gas