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Legal Update on Value Added Tax
"The Value Added Tax (Designation of Tax Withholding Agents) (Revocation) Notice, 2018"
The
Value Added Tax (Designation of Tax Withholding Agents) (Revocation) Notice,
2018
Legal
Notice No. 19 of 2018
The Government
of Uganda on the 29th of June 2018 issued a legal notice referred to
as; The Value Added Tax (Designation of
Tax Withholding Agents) Notice, 2018. This notice was issued by the Minister
of Finance Planning and Economic Development and provided a list of entities
specified in the schedule who were designated as value added tax withholding agents
for purposes of section 5(2) of the Value Added Tax Act. The schedule listed
680 agents who were authorized to withhold tax. This Notice came into force on
the 1st of July 2018.
The
intention of this legal notice was to promote timely collection of revenue
through allowing different entities to withhold tax. The effect of this shift,
was that administrative costs were shifted from Uganda Revenue Authority to the
listed agents in the schedule.
On the
28th day of September 2018, the Minister of Finance Planning and
Economic Development issued another legal Notice cited as, The Value Added Tax (Designation of Tax Withholding Agents)
(Revocation) Notice, 2018 whose purpose and intention was to revoke the
earlier issued legal notice.
Implications
The
effect of this notice is that these entities are no longer authorized to withhold
tax when carrying out any transactions with them.
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