If the goods cannot be valued on the basis of the Transaction Value Method, secondary bases may be used.
A registered taxpayer who receives a supply of services from a nonresident supplier must account for the VAT due on the supply:
when performance of the service is completed;
when payment for the service is made; or
when the invoice is received from the nonresident supplier,
whichever is the earlier.
The VAT payable is calculated by applying the VAT rate to the total consideration paid to the nonresident supplier. The recipient must account for both the value and the VAT calculated in his tax return.
VAT accounted for on imported services may be claimed as a credit, provided the recipient of the service prepares a self-billed tax invoice to account for the tax due on the supply. The claim for credit is subject to certain conditions.
Non-VAT-registered persons must obtain form VAT 500 from any local URA office and account for the VAT on imported services. Such persons will not be able to claim back any VAT incurred on imported services.
VAT-registered persons account for VAT on imported services through the monthly VAT return.
The supply of goods that are exported from Uganda are taxed at the zero rate. The zero rate will apply if:
the goods are supplied by a registered taxpayer to a person in another country;
the goods are delivered by a registered taxpayer to a port of exit for export;
the registered taxpayer obtains documentary proof as set out below; and
the goods are removed from Uganda within 30 days of delivery via a port of exit.
For an export transaction to qualify for zero-rating, a registered taxpayer should obtain and retain the prescribed documentary proof of export (see ‘Additional export documentation’ below).
Refunds to foreigners
The Act does not authorise any refunds to tourists or nonresidents.
Place, time and value of supply
Place of supply
A supply of goods takes place where the goods are delivered or made available by the supplier.
A supply of thermal or electrical energy, heating, gas, refrigeration, air conditioning or water takes place where the supply is received.
A supply of services takes place where the services are rendered unless one of the following specific rules apply:
a supply of services in connection with immovable property takes place where the immovable property is located;
a supply of services of, or incidental to, transport takes place where the transport commences;
a supply of services that applies to the supply of goods or services exported from Uganda is regarded as having been made in Uganda;
where a signal or service is provided for the supply of television, radio, telephone or other communication services, the supply takes place where the person receives the signal;
where a supply involves an agent or any other person of whatever description, the supply takes place at the person’s place of business.
Time of supply
The time of the supply (sale) of goods or services occurs:
where the goods are applied for own use – on the date on which the goods or services are first applied for own use;
where the goods or services are supplied by way of gift – on the date on which ownership in the goods passes or the performance of the service is completed;
in case of a supply of goods under a rental agreement (including letting of goods, hire purchase agreements or finance lease) or services under an agreement or law which provides for periodic payments – each successive supply occurs on the earlier of the date on which each payment is due or received;
in any other case, on the earlier of the date on which:
goods are delivered or made available, or the performance of the service is completed;
payment of the goods or services is completed; or
a tax invoice is issued.
Input tax is claimed in the tax period when the invoice or Customs Bill of entry and URA Receipt have been obtained from the supplier. For taxable persons on the cash basis, input tax is claimed when payment is made and the taxable person has evidence to certify it.