Uganda: Revised VAT Registration Threshold and Online NTR Refund Applications

On 29 and 30 October 2026, the Uganda Revenue Authority (URA) issued two public notices: one on the revised VAT registration threshold, and one on a new online process for refunds of erroneous or excess Non-Tax Revenue (NTR) payments.

VAT registration threshold doubles to UGX 300 million

Effective 1 July 2026, the annual VAT registration threshold has increased from UGX 150,000,000 to UGX 300,000,000.

• Businesses not yet registered must apply to register once their taxable supplies reach UGX 300,000,000 (exclusive of VAT) in a year. Failure to register may expose them to principal tax, interest and penalties.
• Registered businesses below the new threshold may apply in writing to de-register, or stay registered voluntarily as long as they keep meeting all VAT obligations. A business that does not apply is treated as having opted to remain registered, so monthly returns and payment by the 15th of the following month still apply.

De-registration is not automatic. Under Section 9 of the VAT Act Cap 344, taxable supplies must not exceed UGX 75 million in the latest three months or UGX 225 million in the previous twelve months, and voluntary registrants can only de-register two years after registration. Output VAT is due on goods on hand, including capital goods, where input VAT was claimed. After de-registration, input VAT becomes a cost, and businesses in designated sectors must still issue electronic invoices or receipts.

Online refunds for Non-Tax Revenue payments

Refunds of erroneous or excess payments to URA for driving permits, motor vehicle registration, stamp duty and other services provided by Ministries, Departments and Agencies (MDAs) can now be applied for and tracked on the URA portal. Supporting documents for stamp duty and driving permit refunds must still be submitted at the nearest URA office.

Every application must include a working mobile contact and bank account details, and bank details must be up to date on the taxpayer's URA TIN profile. Applications that do not meet the requirements will be rejected within 5 days of submission without further notice.

The full alert sets out the key considerations before de-registering, the step-by-step refund process and the documents required for each type of refund.

How BDO can help

Our Tax & Legal team in Uganda can clarify how these changes affect your business, support your compliance and help you recover overpaid taxes. Contact us on ug-tax@bdo-ea.com.

Contacts for this publication: John Jet Tusabe, Partner; Gabriel Muwonge Musenero, Manager; Maria Apio, Senior Tax Advisor; Geofrey Mukwaba, Semi-Senior Tax Advisor. Tax & Regulatory Services, BDO East Africa (Uganda).