What is Vat?
Value-added tax (VAT) VAT is governed by the VAT Act and administered by the Uganda Revenue Authority (URA).
VAT is charged at the rate of 18% on the supply of most goods and services in the course of business in Uganda. Specified goods and services, as well as exports outside of Uganda, attract a zero rate of tax.
How To File Vat Returns In Uganda
Below are procedures to file vat returns in Uganda
Step 1: On the URA homepage, and log-in to your account if you have already created an account. If you have not created an account yet, select Register and follow the guide under that link to create your account.
Step 2: After logging in, on the Left Menu, go to e-Returns. Under Original, Amended, or Others; select the type of return that you wish to file. E.g. INCOME TAX PROVISIONAL
Step 3: Download the template for the return you wish to file, from the list provided under e-Returns. e.g. INCOME TAX RETURN FORM FOR INDIVIDUAL WITH BUSINESS INCOME, and select save.
Step 4: Save the template to your preferred location on your computer. You do not have to be connected to the internet to fill out the template.
Step 5: Open the template.
Step 6: Before filling out the template, enable macros by following the instructions on the sheet labeled help, on the form you have downloaded.
Step 7: After filling in all the required information, validate the form by clicking the VALIDATE button on the last page of the return.
Step 8: In case of errors, correct them and save the file before validating again.
Step 9: If no errors are found on the template, generate an Upload file by clicking YES on the pop-up window. This will generate a compressed file that will take less of your time to upload. It is recommended NOT TO RENAME YOUR UPLOAD FILE.
Step 10: Reconnect to the URA Web Portal and log in to your account if you had disconnected to submit in the template.
Step 11: After logging in, on the Left Menu, go to e-Returns. Under Original, Amended, or Others; select the type of return that you wish to upload. E.g. INCOME TAX PROVISIONAL.
Step 12: Enter the period for which the return is being filed and click check.
Step 13: Enter all the details required and Upload the return. a. If the form fails online validation, correct the specified errors on the saved template (from which you generated the upload file), save the file, validate and re-generate another upload file. (Refer to steps 7 – 9) b. Try to upload the file again.
Step 14: If the upload is successful, click Submit to submit your return.
Step 15: An e-Acknowledgement receipt will be generated and a copy sent to the email address that you used at registration.
How do I submit a VAT return?
VAT returns can be submitted via the eFiling channel or via a SARS branch (by appointment). Preferred method:
vendors may submit the VAT return via eFiling on or before the last business day of the month following the end of the tax period.
What happens if I don’t submit a VAT return?
Failure to pay VAT on non-exempt imported services is tantamount to lack of compliance with the law, and a penalty of 2% per month, compounded, may apply.