Reduced VAT / GST rate

0^[1]

Standard VAT / GST rate

18^[2]

High VAT / GST rate

Not applicable

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Note: According to the Value Added Tax (Amendment) Act, No.1 of 2020, a taxable person who is allowed a tax credit on purchase of goods and services from suppliers designated to use the e-invoicing system will only be allowed to claim a tax credit on expenses supported by e-invoices or e-receipts.

[1] A zero percent (0%) rate applies to supply of (i) exported goods or services; (ii) international transport of goods or passengers; (iii) drugs, medicines and medical sundries manufactured in Uganda; (iv) educational materials; (v) seeds, fertilisers, pesticides, and hoes; (vi) sanitary towels and tampons and inputs for their manufacture; (vii) leased aircraft, aircraft engines, spare engines, spare parts for aircraft and aircraft maintenance equipment; (viii) cereals, where the cereals are grown and milled in Uganda; and (ix) handling services provided by the National Medical Stores in respect of medical supplies, funded by donors.

[2] According to the Value Added Tax (Amendment) Act 2021, the supply of liquified gas and denatured fuel ethanol from cassava was exempted from VAT. The supply of LPG is now an exempt supply. Further, effective 1 July 2022, the VAT exempt status of exported services was revoked, save for exportation of taxable services in respect of business process outsourcing. The revocation implies that exported services are neither zero-rated nor exemption, therefore, they are subject to VAT at 16%.