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Uganda VAT Guide 2026

Uganda operates a comprehensive VAT system under the VAT Act with a standard rate of 18%. Exports are zero-rated, and the registration threshold is UGX 150 million in annual taxable turnover. VAT returns are filed monthly via the URA portal, with payments due by the 15th of the following month. The Electronic Fiscal Receipting and Invoicing Solution (EFRIS) is mandatory.

Overview — VAT in Uganda

Value Added Tax (VAT) in Uganda is governed by the VAT Act and administered by the Uganda Revenue Authority (URA). VAT is a consumption tax charged on the supply of taxable goods and services in Uganda and on imports. Businesses registered for VAT must charge VAT on their taxable supplies (output VAT) and may recover VAT paid on their purchases (input VAT). The net difference is remitted to URA.

VAT Rates

  • Standard rate — 18%: Applies to most goods and services, including general merchandise, electronics, vehicles, professional services, construction, and telecommunications.
  • Zero rate — 0%: Applies to exports of goods and services, international transport, and certain specified supplies. Zero-rated suppliers can claim input VAT refunds.
  • Exempt: Financial services, insurance, education, healthcare, and agricultural land are exempt from VAT. Exempt suppliers cannot charge VAT or claim input VAT.

VAT Registration — UGX 150 Million Threshold

Any person (individual or company) making taxable supplies with an annual turnover of UGX 150 million or more must register for VAT with URA. Registration is mandatory once the threshold is met. Businesses below the threshold may voluntarily register. EFRIS-compliant invoices must be issued by all VAT-registered persons.

EFRIS — Electronic Fiscal Receipting and Invoicing Solution

EFRIS is Uganda's mandatory electronic invoicing system. All VAT-registered taxpayers must issue electronic invoices in real-time through URA-approved fiscal devices or the EFRIS portal. The system allows URA to monitor transactions in real-time, reducing tax evasion. Non-compliance with EFRIS requirements attracts penalties.

VAT Returns and Payment

VAT returns must be filed monthly by the 15th of the following month via the URA online portal. Late filing attracts a penalty of UGX 200,000 plus 2% of the tax due per month. Late payment attracts interest at 2% per month.

Disclaimer

This guide provides general information about Ugandan VAT. Tax laws may change. Consult a qualified Ugandan tax advisor or URA for advice specific to your situation.