Following a Botched OTT Tax, URA has Devised New Mechanism to Tax Internet Users in Uganda Effective 1-July-2022.

To maximize tax collection, Uganda Revenue Authority (URA) has established mechanisms to start collecting Value Added Tax (VAT) from non-resident service provider companies operating in the nation’s economy, including social media giant Facebook.

Collection of VAT from these companies starts July 1, 2022 and will focus on all electronic service providers such as Netflix, Amazon, Uber, and the like.

“There's a global forum under the OECD giving us access to 144 countries to share information with. It will tell us who is trading within our economy and is supposed to pay money to our country instead of taking it to another country,” URA commissioner general Mr John Musinguzi told a gathering at the tax-body’s post-budget conference in Kampala.

According to him, collection of the said tax had been delayed by lengthy discussions with the target companies.

“But we agreed and have finalized- then other levies will follow as time goes on,” Mr Musinguzi noted without necessarily detailing enforcement mechanisms in case of non-compliance.

Meantime, the tax is expected to stretch over websites, web hosting software firms, and those supplying images, text and information including self-education packages, music, film, gambling, and other broadcasts and events digital platforms, as well as companies on remote maintenance of programs and equipment.

While revealing the strategy expected to push Uganda beyond the FY2021/22 tax local tax revenue of about Shs23trillion, Mr Musinguzi said: “We are left with only one option to efficiently collect revenues from within the country and we must mobilize more stakeholders to join us in this effort.”

Ramathan Ggoobi, the permanent secretary to the ministry of finance projects Uganda to –for the first time- collect Shs25trillion locally despite no new taxes pronounced ahead of the FY2022/23.

Uganda currently has a public debt of more than 73 trillion shillings.

“We are avoiding borrowing for consumption. We are to borrow for productive projects which we are also sequencing now and we are going to cancel those which are not likely- to deploy the money on time to avoid huge debt repayments,” Mr Ggoobi said in Kampala on Tuesday.

VAT Act

Under section 16 (2) of the VAT Act, a non-resident person who supplies electronic services to a non-taxable person in Uganda makes a taxable supply. Such a supplier is therefore required to charge VAT on the supply, file quarterly returns, and pay VAT due on supply within fifteen from the end of each quarter.

Comments

UGANDA ELECTORAL COMMISSION TO ELIMINATE NATIONAL IDENTIFICATION CARDS (IDs) FOR 2021 GENERAL ELECTIONS.

The elimination of using National IDs (Ndagamuntu) for the 2021 elections should not have come as a surprise. One would be very NAIVE to think that Bobi Wine has not prepared for this in his Business Plan under the RISK section. It is public knowledge that our EC is not independent. It is also public knowledge that Military Dictator Yoweri Museveni will never lose an election. What stunned us this morning is when we noticed that on social media, people were mocking Bobi with his "get your Ndagamuntu". We are on record for saying to all Our readers that the National ID is like Apartheid in South Africa. Students of History would know how those IDs were being used to arrest people, deny them jobs, deny them basic services. Consequently, Bobi was not wrong and will never be wrong on the Ndagamuntu. Except the ones attacking him and mocking him forget that in Uganda, now, no National ID (Ndagamuntu), no service. If you have not been denied registering your child i...

UPDF has Rehabilitated Boreholes and Shallow Wells in Maracha District Ahead of 45th Tarehe Sita.

Story by Osuta Yusuf. Maracha District. 30-12-2025. 📸: The technical team fixing some of the boreholes. Photo by Osuta Yusuf, Our News Reporter. The Uganda Peoples Defence Forces (UPDF) which is the legally constituted security organ to guard and protect the people, properties and sovereignty of Uganda, have rehabilitated a total of 9 Boreholes and shallow wells at the tune of 15m Shs in 7 Sub-counties out of the 19 Sub-counties in Maracha District through a service dubbed under the Theme of “QUICK IMPACT PROJECT” directly financed by the UPDF, ahead of preparation for the celebration of their next year's 2026 Tarehe Sita anniversary. 📸: Official launch of UPDF’s 45th Tarehe Sita celebration ahead of the due date 6-February-2026. Courtesy Photo. The UPDF Tarehe Sita is an annual public holiday and event that takes place on every 6th of February, the date when the then Uganda Patriotic Movement (UPM) party now turned as National Resistance Army / Movement (NRA / M) headed b...

Parliament Urges Government to Provide Shs 4 Billion to Media Houses to Run Awareness Campaign on Tourism in Uganda.

Parliament also urged Gov’t to provide additional Shs4Bn to UTB to engage international and national media houses in production of positive media stories for improved destination image, following reports of drop in number of tourists from US, Europe and China visiting Uganda. "The National Development Plan targeted to cumulatively attract 281,760 International Tourist arrivals from US, Europe & China but only 67,252 arrivals were registered by the end of the first half of FY 2023/24. The U.S, Europe & China were key target source for leisure tourist who stay longer than business tourists. However, statistics show that international arrivals from the aforementioned areas have continue to drop. The UTB requires Shs4Bn to engage international & national media houses in production of positive tourism stories to improve destination perception in light of recent controversies that shade the destination in a bad light. However, this has remained unfunded,” said La...

Osuta Yusuf

Search This Blog