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Legal Update on Value Added Tax

Tuesday, 02 October 2018

"The Value Added Tax (Designation of Tax Withholding Agents) (Revocation) Notice, 2018"

The Value Added Tax (Designation of Tax Withholding Agents) (Revocation) Notice, 2018

Legal Notice No. 19 of 2018

The Government of Uganda on the 29th of June 2018 issued a legal notice referred to as; The Value Added Tax (Designation of Tax Withholding Agents) Notice, 2018. This notice was issued by the Minister of Finance Planning and Economic Development and provided a list of entities specified in the schedule who were designated as value added tax withholding agents for purposes of section 5(2) of the Value Added Tax Act. The schedule listed 680 agents who were authorized to withhold tax. This Notice came into force on the 1st of July 2018.

The intention of this legal notice was to promote timely collection of revenue through allowing different entities to withhold tax. The effect of this shift, was that administrative costs were shifted from Uganda Revenue Authority to the listed agents in the schedule.

On the 28th day of September 2018, the Minister of Finance Planning and Economic Development issued another legal Notice cited as, The Value Added Tax (Designation of Tax Withholding Agents) (Revocation) Notice, 2018 whose purpose and intention was to revoke the earlier issued legal notice.

Implications

The effect of this notice is that these entities are no longer authorized to withhold tax when carrying out any transactions with them.

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