- Parliament passed a VAT amendment raising Uganda’s registration threshold from UGX 150 million to UGX 250 million, effective 1 July 2026 if assented to by the president.
- The change is meant to reduce compliance burdens for many small VAT-registered businesses that file nil returns and add little VAT revenue, while letting URA focus on larger taxpayers.
- SMEs below UGX 250 million turnover may deregister from VAT, which can cut costs and remove monthly filing obligations, but they lose the ability to claim input VAT.
- Businesses should weigh cash flow benefits of staying registered against penalties for non-filing, deregistration approval requirements, and the tax effects of losing VAT recovery.
- Deregistration does not remove invoicing/documentation rules; businesses still need proper records, including EFRIS-generated receipts or invoices.
Source: pwc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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