Uganda doubles the overpaid-VAT offset threshold in section 42(2) from UGX 5 million to UGX 10 million

What changed in detail

Section 5 of Uganda’s Value Added Tax (Amendment) Act, 2024 amends subsection (2) of section 42 of the Value Added Tax Act, Cap. 349, replacing the word “five” with “ten” wherever it appears.

The Act’s long title states the purpose of the change in its own words: to increase the threshold of the offset in case of overpaid tax from five million shillings to ten million shillings. Section 42 governs what happens when a taxable person’s input tax credits exceed the tax payable for a period.

The Act was assented to on 15 July 2024 and, under section 1, came into force on 1 July 2024.

What it means

The figure is set in the Act rather than by regulation, so it changes only when Parliament amends section 42(2). The weekly feed records no later change; check the current consolidated Act before relying on it, because Uganda amends its VAT Act most years.

This record describes the change in the amending Act’s own terms. The text of section 42(2) in the principal Act was not reviewed here, so the exact mechanics (which excess amounts are carried forward and offset rather than refunded) should be confirmed from the consolidated Act or Uganda Revenue Authority guidance.