The Value Added Tax (VAT Amendment) Act, 2018 that took effect on 1 July 2018 has introduced a new concept of Value Added Tax (VAT) withholding in Uganda.

In Uganda, VAT is charged at the rate of 18%. Before 1 July 2018, the person making payment for a taxable supply, would pay to the taxable person (supplier) both the transaction amount and the VAT charged. The taxable person would in turn r…