Uganda has joined the list of countries around the world collecting Value Added Tax (VAT) on electronic services in order to increase government revenue and tap into the digital economy.
Effective 1st July 2021, all non-residents providing electronic services to non-taxable persons in Uganda were required by law to charge VAT of 18% on the service and remit the amount to URA.
The future, URA together with government will explore ways of taxing the direct income of non-resident digital companies, earned from sources in Uganda.
Source: allafrica.com
