Non-resident e-service providers confirmed liable to VAT 1 July 2022; provided with new registration and returns portal
The URA has confirmed that non-residents should now be register and reporting VAT on sales to Ugandan consumers. The Uganda Revenue Authority was originally given powers to impost VAT on non-residents in 2011, but did not do due to legal uncertainties.
New registrations portal
Foreign providers may now use the Uganda Revenue Authority‘s new online portal to register and report quarterly VAT returns. This includes first applying for a Tax Identification Number with the URA. The option to appoint a local fiscal representative still applies.
Uganda confirmed the VAT obligations for non-resident suppliers of B2C electronic or digital services from July 2018. This includes the obligation to VAT register once over the threshold of UGX 150m, but no requirement to appoint a fiscal representative.
The current VAT rate in Uganda is 18%. VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.
What digital services are taxable in Uganda?
Income from the supply of the following digital services supplied remotely is subject to Ugandan VAT:
- SaaS and cloud software
- Website domain name and hosting
- Images and data
- E-learning
- Online gaming and gambling
- Online advertising
- Streaming media (music, TV and films)
- Television broadcast
VAT registrations and compliance
Non-residents are obligated to VAT register if their quarterly income exceeds UGX 37.5m (approx €9,000) or their annual income exceeds UGX 150m (approx €36,000). There is no requirement for a foreign provider to appoint a local Fiscal Representative. However, the practicalities of the process generally mean an agent is necessary who will be jointly and severally liable for the VAT.
VAT returns are then due on a monthly basis. They should be filed, along with the remittance of any VAT due, by the 15thof the following month.
Africa & Middle East VAT on digital services
| Comments (click for details) | Rate | Date | Threshold | Comments |
| Algeria | 9% | Jan 2020 | Nil | |
| Angola | 14% | Oct 2019 | – | |
| Bahrain | 10% | Jan 2019 | Nil | |
| Cameroon | 19.5% | Jan 2020 | XAF 50 million | |
| Egypt | 14% | Sep 2016 | EGP 500,000 | |
| Ghana | 12.5% | Apr 2022 | GHS 200,000 | |
| Israel | 17% | 2023/24 | – | Proposal in 2023/24 budget |
| Ivory Coast | 18% | 2022 | - | |
| Kenya | 16% | Sep 2013 | KES 5million | |
| Kuwait | 5% | Jan 2023? | - | TBC |
| Mauritius | 15% | 2020 | ||
| Nigeria | 7.5% | Jan 2020 | $25,000 | |
| Oman | 5% | Apr 2021 | OMR 35,000 | |
| Rwanda | 18% | TBC | ||
| Saudi Arabia | 15% | Jan 2018 | Nil | |
| South Africa | 15% | Jun 2014 | ZAR 1 million | |
| Tanzania | 18% | Jul 2022 | Nil | Residents since Jul 2015 |
| Tunisia | 19% | Jan 2020 | Nil | Withholding VAT; 3% Royalty Tax |
| Uganda | 18% | Jan 2020 | UGX 150m | |
| United Arab Emirates | 5% | Jan 2018 | AED 375,000 | |
| Zimbabwe | 14.5% | Jan 2020 | Nil |
