The Value Added Tax (Amendment), 2025

The Value Added Tax (Amendment) Bill, 2025

The most recent Value Added Tax (Amendment) Bill in Uganda is the Value Added Tax (Amendment) Bill, 2025. This bill was introduced on March 25, 2025, and is currently at the First Reading stage in Parliament. The bill aims to amend the Value Added Tax Act, Cap. 344, to include provisions for an anti-fragmentation rule for imported goods, VAT exemptions for biomass pellets and solar lanterns, zero-rating of aircraft supplies, and to prescribe United Nations-related agencies and specialized agencies as listed institutions;

• Anti-fragmentation rule:
  This measure is designed to prevent importers from splitting large consignments into smaller ones to avoid VAT registration, thus improving tax administration and revenue collection.
• VAT exemptions:
  The bill proposes to exempt biomass pellets and solar lanterns from VAT, promoting environmental sustainability and the adoption of cleaner energy solutions

• Zero-rating of aircraft supply:
  This amendment aims to encourage the aviation industry by removing VAT on the supply of aircraft
• Listed Institutions:
  The bill seeks to add United Nations-related agencies and specialized agencies to the list of institutions that are exempt from VAT and can claim refunds for taxes paid on official transactions

• Current Status:
  The bill is currently at the First Reading stage in Parliament, which is the initial step of formally introducing the bill and setting the stage for further discussion and debate

The Bill is largely focused on improving tax administration, enhancing revenue collection, promoting environmental sustainability, and supporting specific sectors like aviation.