Tax rate by region Uganda

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Uganda levies a standard 18% Value Added Tax (VAT) on the supply of goods and services, administered by the Uganda Revenue Authority (URA). While domestic companies must register once their annual taxable turnover hits UGX 150 million, non-resident suppliers of remote and electronic business-to-consumer (B2C) services face a strict “first-sale” rule, meaning they are required to register under a simplified online regime from their very first transaction.

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Uganda

Uganda applies a Value Added Tax (VAT) at 18% on the supply of most goods and services. Non-resident suppliers of remote/electronic services to non-taxable persons in Uganda must register and file quarterly VAT returns. T

Official government link: Uganda Revenue Authority (URA)

18.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

After first sale

Online registration possible

Yes 

Local representative needed

Not mandatory

Registration procedure

Register with URA; non-residents use dedicated non-resident digital service registration via URA web portal

List of digital and electronic services liable for tax

Remote/electronic services 

Penalties

Late payment penalty: 2% per month, compounded, on unpaid VAT on non-exempt imported service

Registration threshold

No threshold

Filing interval

Quarterly

Filing deadline

15th day of the month following the reporting period

E-invoicing requirements

Yes

Record keeping

5 years 

How-To Guides: Uganda SaaS VAT

Step: 1 Threshold

Effective July 1, 2018, Uganda requires non-resident vendors of digital services to consumers (B2C) in Uganda to register for and collect VAT if their sales exceed UGX 150 million in a 12-month period.

 

Uganda recently made amendments to its VAT regime as part of a broader 2021-22 Budget measures, which introduces a separate quarterly return filing for services provided by non-residents, including digital services.

 

On July 7, 2022, the Uganda Revenue Authority issued a notice reminding non-resident digital services providers that they are required to register for VAT.

Step: 2 Business Registration

Register online via the Uganda Revenue Authority (URA) portal using the simplified registration framework for non-resident service providers.

Step: 3 TIN/VAT Number

Upon registration, you will be issued a Tax Identification Number (TIN).

Step: 1 Standard Rate

The standard rate in Uganda is 18%.

Step: 2 Rate Formula

To calculate your tax amounts, use the following formula:

 

Tax Amount = Net Price x 18%

 

Note: A separate 5% Digital Services Tax (DST) on gross revenue may apply to the company’s income, but VAT is the tax collected from the customer.

Step: 3 Reverse Charge (B2B)

Yes. The supply of electronic services to a VAT-registered person in Uganda (B2B) is subject to the Reverse Charge Mechanism. The non-resident supplier does not charge VAT if the buyer provides a valid TIN.

Step: 1 Selling B2C

You must charge 18% VAT on all digital services supplied to non-taxable persons (consumers) in Uganda.

Step: 2 Selling B2B

• Registered Buyer: Do not charge VAT. The buyer accounts for the tax via reverse charge. You must validate the customer’s TIN.

• Unregistered Buyer: Treat as a B2C transaction and charge 18% VAT.

Step: 3 Invoice Requirements

Non-residents are exempt from the local EFRIS (Electronic Fiscal Receipting) system but must issue a commercial invoice/receipt containing:

• Supplier Name & Address
• Date and Serial Number
• Customer Name & TIN (for B2B validation)
• Description of Services
• Value of Supply & VAT Amount

Step: 1 Filing Interval

File the VAT return Quarterly (specifically for non-resident electronic service providers).

Step: 2 Filing Deadline

Returns must be submitted by the 15th day of the month following the end of the quarter (e.g., April 15 for Q1).

Step: 3 Submission

File the “Quarterly VAT Return for Non-Resident Service Providers” via the URA Web Portal. Payments can be made via bank transfer using a PRN (Payment Registration Number).

Step: 4 Record Keeping

Maintain records for a minimum of 6 years (VAT Act requirement).

• Uganda Revenue Authority (URA) – eServices
• URA Public Notice on VAT for Non-Residents (PDF)
• VAT Act Cap 349 (Section 16)

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Uganda’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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