Uganda to introduce VAT on electronic services

7 January 2019

Uganda is proposing to introduce VAT at 18% on the provision of electronic services in the country by non-resident companies.

At present, foreign businesses providing digital services in Uganda do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Ugandan resident providers, the Ugandan government is proposing to implement VAT at 18% on these types of transactions.

If introduced, this new tax will be subject to a UGX 15 million threshold (approx. £3,200) and will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.

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