the objection decision from the Commissioner-General, that person may lodge an application with the Tax Appeals Tribunal for review of the objection within 30 days after having been served the notice of the objection decision.
Before lodging the application with the Tribunal, the person is required to pay the Commissioner-General 30% of the tax in dispute or that part of the tax not in dispute, whichever is the greater.
Where a person is dissatisfied with the decision of the Tax Tribunal, a notice of appeal may be lodged with the registrar of the High Court within 30 days after being notified of the decision. An appeal to the High Court is always made on a question of law only.
Where a person fails to lodge a return as required, or the URA is not satisfied with the return lodged, or the URA has reason to believe that a person will become liable to pay VAT but is unlikely to pay the amount due, an assessment will be issued within five years of the date on which the return was lodged by that person. An assessment may be issued at any time where fraud or gross or wilful neglect has been committed by, or on behalf of, a person.
A claim for output tax overpaid must be made within three years after the end of the tax period in which VAT was overpaid.
An application to alter a return can be made within three years after the date on which the return was lodged.
Every taxable person must issue an original tax invoice to the recipient
(whether a taxable person or not) at the time of the supply. An invoice for VAT purposes should contain the following information:
the words ‘tax invoice’;
the commercial name, address, place of business, VAT registration number and Taxpayer Identification Number (TIN) of the supplier and recipient;
the serial number and date of issue of the invoice;
the description, quantity or volume of goods or services supplied;
the rate of VAT for each category of goods or services and the total amount of VAT charged; and
the consideration for the supply excluding tax and the consideration including VAT or where the amount includes VAT, a statement that it includes VAT, and the rate thereof.
Invoicing may be done in a foreign currency but even though the law allows invoicing in a foreign currency, the returns have to be filed in Ugandan shillings. Where an amount is expressed in a currency other than Ugandan shillings, the amount must be converted into Ugandan shillings using the weighted average selling rates of the previous month for the currency concerned. These rates are normally issued by the Bank of Uganda at the beginning of every month.
Tax invoices prepared by the principal may be passed to the agent for issue. The principal may also authorise the agent to issue tax invoices on his behalf. This authorisation must be in writing and be retained by the agent. The authorisation commits the principal to meet the VAT obligations resulting from the agent’s actions.
Credit notes and debit notes Where in relation to a taxable supply by
a taxable person -
the supply is cancelled;
the nature of the supply has been fundamentally varied or altered; or
the previously agreed consideration for the supply has been altered by agreement with the recipient of the supply, whether due to an offer of a discount or for any other reason; or
the goods or services or part thereof have been returned to the supplier,
and the taxable person making the supply has provided a tax invoice in relation to the supply and the amount shown therein as the VAT charged on the supply is incorrect as a result of the occurrence of any one or more of the above-mentioned events; or the taxable person has filed a return for the tax period in which the supply occurred and has accounted for an incorrect amount of output tax on that supply as a result of the occurrence of any one or more of the above-mentioned events, the taxable person must issue a credit note or debit note.
A credit note is issued where the actual VAT chargeable is less than the amount on the tax invoice. A debit note is issued where actual VAT chargeable is more that the amount on the tax invoice.
Additional export documentation
A tax invoice issued to a nonresident recipient generally shows tax at a zero rate. In order to qualify for zero-rating on exports, the supplier must also have the following:
a copy of the invoice issued to the foreign purchaser with tax shown at 0%;
a Customs Bill of Entry or Export certified by the customs authorities;
a CD3 form issued by the Bank of