Uganda raises the VAT registration threshold to UGX 250 million
- Jurisdiction
- Uganda
- Tax
- VAT
- Change type
- Threshold
- Status
- In force
- Announced
- 1 April 2026
- Effective
- 1 July 2026
- Authority
- Daily Monitor (Uganda)
- Verified
- Corroborated against official id · high confidence
Ugandan businesses turning over between UGX 150 million and UGX 250 million, who fall out of mandatory registration from 1 July 2026.
Uganda's Value Added Tax (Amendment) Act, 2026 raises the VAT registration threshold from UGX 150 million to UGX 250 million in annual taxable turnover, effective 1 July 2026. The bill was tabled in Parliament on 1 April 2026, passed by Parliament in April 2026, and received presidential assent. Businesses with turnover below UGX 250 million may deregister from VAT from 1 July 2026.
What changed in detail
Uganda’s Value Added Tax (Amendment) Act, 2026 raises the VAT registration threshold from UGX 150 million to UGX 250 million in annual taxable turnover, effective 1 July 2026. The bill was tabled on 1 April 2026, passed in April and received presidential assent; businesses with turnover below UGX 250 million may deregister from VAT from 1 July 2026.
What it means
This is relief at the small-business end — the opposite of an e-invoicing burden. If your Ugandan turnover sits between UGX 150m and 250m, you may now fall below the VAT line and can choose to deregister from 1 July 2026; weigh the compliance saving against the loss of input-VAT recovery before doing so.
Proof
VAT threshold raised to Shs250m: Relief or new challenge? Tuesday, June 02, 2026 Scroll down to read the article Juliet Najjinda Mutabaazi, the associate director of tax services at PwC.
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