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REVOCATION OF THE VAT WITHHOLDING DESIGNATED AGENTS

The Minister of Finance, Planning and Economic Development of Uganda issued the Value Added Tax withholding designated
agents’ revocation notice 2018 on 20TH September 2018..

This withdraws the earlier issued Value Added Tax designation of tax withholding agents notice, 2018 that was issued by the minister. The gazette on the 28th September 2018 published the revocation Notice which halts the operation of the value added tax withholding in Uganda.
The revocation Notice for the VAT withholding scheme followed the different challenges that were presented by the scheme which included Cash-flow constraints, additional compliance obligation for the designated VAT withholding agents and enforcement challenges for both the taxpayers and URA respectively.

WHAT THE REVOCATION OF THE VAT WITHHOLDING AGENTS MEANS TO THE TAXPAYER

• The revocation notice for the designated agents has made the VAT withholding scheme inactive. Without the agents there is no one currently required to withhold VAT on the payments they make to their suppliers and remit it to URA.
• The former designated agents will stop the withholding of VAT from payments to their suppliers.
• The law on VAT withholding still stands but it is inactive due to the absence of the designated agents. VAT withholding can only be operationalised again after the minister of Finance, Planning and Economic Development again uses the power given to him in Section 5 (2) of the VAT Act, Cap. 349 (as amended) which provides that; the Minister shall, by notice in the Gazette, designate persons who shall withhold VAT on a payment for a taxable supply and the persons designated shall remit to the Uganda Revenue Authority one hundred percent of the VAT payable.
• Tax payers should ensure the VAT amounts withheld during the period from 1st July 2018 to 20th September 2018 are creditable within their VAT returns in order to prevent double payment of Taxes.


INCOME TAX & VAT WITHHOLDING DESIGNATED AGENTS

As per the changes in the Domestic Tax laws of Uganda, The ministry of Finance has designated and gazetted a
number of taxpayers as income Tax and VAT withholding agents.

Click on the following links below to download a copy of the Designated Income Tax & VAT Withholding Agents
Income Tax Designated Agents
VAT Withholding Designated Agents

TAX AMMENDMENTS

On 3 April 2018, Uganda’s Minister of Finance, Planning and Economic Development (Minister of Finance) tabled before
Parliament the following bills which were passed by parliament and became law on 1st July 2018:.

  • Income Tax (Amendment) Bill, 2018
  • Value Added Tax (Amendment) Bill, 2018
  • Excise Duty (Amendment) Bill, 2018
  • Tax Procedure Code (Amendment) Bill, 2018
  • Tax Appeals Tribunal (Amendment) Bill, 2018
  • Stamp Duty (Amendment) Bill, 2018
  • Traffic and Road Safety (Amendment) Bill, 2018

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