Join us for an engaging and informative webinar where the MRT Tax and RSM Eastern Africa team will break down the Uganda Budget Highlights for 2024 and their tax and commercial implications to businesses.
Tag Archives: DEEMED PAID VAT
NAVIGATING THE NEW TAX YEAR 2024-2025: KEY CONSIDERATIONS FOR BUSINESSES.
Enhanced focus on digital transactions
With the digital economy growing rapidly, tax authorities worldwide, including the URA, are paying more attention to digital transactions. E-commerce, digital services, and online marketplaces are becoming significant contributors to the economy, and they are now firmly on the tax radar. Businesses engaging in digital transactions should ensure they understand the tax implications and comply with the relevant digital services tax regime recently introduced under the VAT Act and the Income Tax Act.
A GOVERNMENT CONTRACTOR’S GUIDE TO DEEMED VAT.
Deemed paid VAT is a tax relief mechanism by which the government absolves a VAT trader from payment of the VAT charged by their customer on a VAT taxable transaction.
The deemed paid VAT relief is a commercially advantageous incentive that greatly improves cash flow resilience of businesses in the commercial chain of expensive infrastructure projects as well as those in capital intensive sectors owing to the fact that most often, these businesses must mobilise large amounts of capital from lenders or internally(shareholders) in order to be able meet the financing needs of executing such capital intensive projects. For this reason, it is therefore critical for taxpayers that fall under this category to properly grasp the deemed paid VAT principle and to understand its applicability and the commercial implications of this relief to their operations.