Correction: Uganda's VAT registration threshold is UGX 300 million, not 250 million
- Jurisdiction
- Uganda
- Tax
- VAT
- Change type
- Threshold
- Status
- In force
- Impact
- Action required
- Announced
- 11 June 2026
- Effective
- 1 July 2026
- Authority
- Ministry of Finance, Planning and Economic Development (Uganda)
- Systems
- Tax engine, Reporting
- Verified
- Fetched from official source · medium confidence
Ugandan businesses with annual taxable turnover between UGX 150 million and UGX 300 million, who fall outside mandatory VAT registration for FY2026/27. The source behind this figure is the Ministry's Budget Speech — an official ministerial statement of policy — rather than the text of the VAT (Amendment) Act itself, and UGX 250 million was the figure carried in the Bill as introduced, not the enacted or announced position.
Use UGX 300 million, not UGX 250 million, as Uganda’s annual VAT registration threshold for FY2026/27. If you assessed a registration obligation against 250 million since 1 July 2026, re-test it.
Tax engineReporting
Uganda’s Ministry of Finance, Planning and Economic Development stated, in the Budget Speech for Financial Year 2026/2027 delivered on 11 June 2026, that the annual VAT registration threshold increases from UGX 150 million to UGX 300 million to ease compliance for small businesses and improve tax administration efficiency, a measure the Ministry projects will generate UGX 349 billion. This corrects the figure of UGX 250 million reported for ug-vat-threshold-200m-2026, which reflected the VAT (Amendment) Bill 2026 as introduced rather than the figure the Ministry states following passage.
What changed in detail
Uganda’s Ministry of Finance, Planning and Economic Development, in the Budget Speech for Financial Year 2026/2027 delivered on 11 June 2026, states that the annual VAT registration threshold increases from UGX 150 million to UGX 300 million, a measure it projects will generate UGX 349 billion. This is the Ministry’s own stated figure for the threshold applying from 1 July 2026.
What it means
This corrects ug-vat-threshold-200m-2026, which reported a threshold of UGX 250 million — the figure carried in the VAT (Amendment) Bill 2026 as introduced, before the Ministry’s own Budget Speech settled the policy figure at UGX 300 million. Worth being precise about the source: this record rests on the Budget Speech, an official ministerial statement, not on the text of the VAT (Amendment) Act as passed — treat the figure as the government’s stated policy position rather than as a citation to the Act itself, and re-verify against the Act text when it is available. If your Ugandan VAT-registration logic was built against either 250 million or the old 150 million line, both are now wrong; re-test against 300 million.
Proof
Increase in the annual VAT threshold from Shs 150 million to Shs 300 million to ease compliance for small businesses and improve tax administration efficiency. This measure is projected to generate Shs 349 billion.
Source snapshot of the official page. Open full size ↗Archived from the official distribution · www.finance.go.ug
Sources
What this replaces
- Uganda raises the VAT registration threshold to UGX 250 million effective 1 July 2026