Uganda VAT Guide for 2026: Rates, Registration & Filing
Uganda's standard VAT is 18%. Learn the registration threshold, the digital-services VAT rules, and monthly filing with the URA.
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Key Takeaways
Uganda charges 18% VAT on most goods and services, administered by the Uganda Revenue Authority (URA) [1]. The registration threshold is UGX 150 million a year, or UGX 37.5 million in any three consecutive months [1]. Since July 2021, non-residents supplying electronic services to consumers must register once they meet the UGX 150 million threshold, charge 18%, and file quarterly without input-VAT credits, while B2B uses the reverse charge [1][2]. SaaS, digital services, and clothing are taxable at 18%, and unprocessed foodstuffs, health, education, and financial services are exempt [1].
Taxability Snapshot
SaaS
Taxable
Clothing
Taxable
Groceries
Exempt
Digital Goods
Taxable
Sales Tax Rates
Uganda's VAT standard rate is 18% on most goods and services, including digital supplies [1]. A 0% rate covers exports and specified supplies such as educational materials, sanitary products, and locally manufactured medicines [1]. The tax authority is the Uganda Revenue Authority (URA).
Rate | Applies to |
|---|---|
Standard 18% | Most goods, services, digital supplies |
Zero 0% | Exports, educational materials, sanitary products, local medicines |
Exempt | Financial services, health, education, unimproved land |
Registration & nexus threshold
The domestic registration threshold is UGX 150 million of annual taxable turnover, with compulsory registration also triggered above UGX 37.5 million in any three consecutive months [1]. Since July 1, 2021, non-residents supplying electronic services to non-taxable persons (B2C) in Uganda must register once they meet the UGX 150 million annual threshold (about UGX 37.5 million in any three consecutive months), charge 18%, and file quarterly returns; they cannot claim input VAT credits [1][2]. For B2B, the Ugandan recipient accounts for VAT under the reverse charge [1].
How to register for Ugandan VAT:
Confirm your electronic services reach non-taxable customers in Uganda.
Register with the URA under the non-resident electronic-services regime.
Receive your registration.
Charge 18% VAT on B2C supplies.
File quarterly and pay in Uganda shillings (UGX).
Filing frequency & deadlines
Domestic registered persons file monthly, with the return and payment due by the 15th of the following month [1]. Non-resident suppliers of B2C electronic services file quarterly returns, within 15 days of each quarter-end, and pay in Uganda shillings [1].
Exemptions
Exempt supplies include financial services, health and life insurance, education, medical services, imported drugs, unimproved land, residential leases, and betting and gaming [1]. Zero-rated supplies include exports, educational materials, sanitary products and their inputs, and locally manufactured drugs [1]. SaaS and electronic services supplied to Ugandan consumers are taxable at 18% [1].
Penalties
Late filing attracts a penalty of the greater of UGX 200,000 or 2% of the tax payable per month, and late payment carries interest of 2% per month, compounded, capped at the aggregate of principal plus penal tax [1].
Sources
Verified July 2026 against URA guidance and PwC.
Frequently asked questions
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