This section was prepared by Timothy Muzondo. It draws on a report by the Fund’s Fiscal Affairs Department, following a technical assistance mission in November 1997.
The VAT is administered in Uganda by the VAT Department, which is one of the major departments of the Uganda Revenue Authority (URA). The URA was set up in 1991 as a semiautonomous organization outside the civil service. It comprises a headquarters with support departments (Finance and Administration, Internal Audits, and Management Services), and operational departments (VAT, Income Tax, Customs, Research and Development, and Investigation and Audit).
The March 1994 Fund technical assistance mission recommended restriction of the number of VAT taxpayers to no more than 3,000. According to the data that were made available at that time, the mission estimated the level of the threshold at U Sh 20 million. It made clear, however, that further studies would be needed to ensure that this threshold was appropriate (see “Uganda: Toward a Value-Added Tax,” April 1994).