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3 min read · 31 Aug 2026

Do small retail shop owners have to pay VAT?

No. Value Added Tax (VAT) at $18\%$ applies only if your annual taxable turnover reaches or exceeds UGX 150,000,000.

Direct answer

No. Value Added Tax (VAT) at $18\%$ applies only if your annual taxable turnover reaches or exceeds UGX 150,000,000. Small retailers below this threshold pay Presumptive Tax instead.

Practical tips

- Always ensure you understand the no. requirements. - Keep detailed records, as mentioned: 'value...' - Seek professional advice when in doubt about legal or financial matters.

Topics: Uganda · FAQ · Business · URA · Taxes

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