Case file VAT-2019-WHVAT
Withholding VAT reintroduced at 6%
Highest rung reached: Reported yieldLaw: read in a statutory textWithholding · Compliance
1 point pending verification
- The text of Act 14 of 2019 and the wording it replaced.
Law
- Principal Act
- Value Added Tax Act (Cap 344), enacted as Statute 8 of 1996
- Amending Act
- Amending Act listed as Act 14 of 2019 (Act 14 of 2019) (probable: the only amending Act in force from the right date, not confirmed)
- Provision, revised numbering (2023 revision)
- s. 5(2) to (6)
- Provision, numbering before the revision
- not stated in any source read
- Principal Act dates
- assent 1996-03-23; gazette 1996-04-04; commencement 1996-07-01; Statute Supplement 5
- Amending Act in force from
- assent, gazettement and commencement dates pending
- Tax heads and taxpayers affected
- VAT. Withholding agents and their VAT-registered suppliers.
- Status
- Legal: pending verification. Implementation: implemented.
The wording in force
as at 2023-12-31
(2) The Minister shall, by notice in the Gazette, designate a person who shall withhold tax on payment of taxable supplies. (3) A person designated under subsection (2), shall remit to the Uganda Revenue Authority, six percent of the taxable value referred to in sections 21 and 23 of this Act. (4) Subsection (3) does not apply to a taxable person who the Commissioner General is satisfied has regularly complied with the obligations imposed on a taxable person under this Act. (5) The six percent of the taxable value withheld by a person designated under subsection (2) shall be recognised as a payment in the subsequent value added tax return of the tax payer from whom the tax is withheld. (6) A person designated under subsection (2) shall withhold tax where a person is registered or where a person who is not registered but who is required to be registered, makes a supply for an amount equivalent to onequarter of the annual registration threshold under section 7(2). Verified law: Wording or a date read in a statutory text, with the version and page named.[LRC-VAT-2023, printed page 11877 to 11878, PDF page 9, s. 5]
Redline pending verification
In plain English
Interpretation: A reading of the evidence, by a named source or by this register. Designated buyers again withhold part of the VAT they owe suppliers. URA booked a small fraction of what it expected.
Reason
Stated objective pending verification
Revenue
- Rung 1
Observed change
Observed: A value or event as an official source records it, copied without calculation.- Collections for the tax heads affected are drawn on the story page, from URA's annual data books. Before and after is never presented as this amendment's effect.
- Rung 2
Official forecast
Official forecast: What MoFPED or URA said a measure would raise, or why it was made, before the year began.- URA: UGX 49.46 bn expected in FY2019/20 (Withholding VAT reintroduced at 6%).[URA-ARR-1920, printed page 54, PDF page 61, Annex 3, item D1.0]
- Rung 3
Reported yield
Reported yield: What URA attributes to a measure after the year. An official attribution, not a causal estimate.- URA reports UGX 4.1 bn for FY2019/20, 8.29 percent of the forecast (computed).[URA-ARR-1920, printed page 54, PDF page 61, Annex 3, item D1.0]
- Rung 4
Static or modelled estimate
Modelled estimate: A mechanical or model calculation, with every assumption shown.Missing. No estimate made. A static estimate needs the taxable base before the change (volumes or values by product), which the register does not hold.
- Rung 5
Causal estimate
Causal estimate: An effect identified by a stated research design against a comparison group.Missing. No study with a defensible identification strategy was found for this amendment.
- Rung 6
Wider impact
Interpretation: A reading of the evidence, by a named source or by this register.Missing. No source read for the register describes effects on prices, compliance cost, investment or equity.
What is known, what is uncertain, and what would settle it
- Known: official forecast, reported yield.
- Uncertain: static or modelled estimate, causal estimate, wider impact; and 1 open point below.
- Would settle it: Download of the Value Added Tax Act (Cap 344) point-in-time versions for 1 July of each year from 2014 to 2025 from ULII, or the Law Reform Commission's 2023 revised edition. Held by ULII (point-in-time versions of /akn/ug/act/statute/1996/8); Law Reform Commission.
Pathway
From the amendment to its wider consequences. Select a link to read what supports it. No money is drawn along the chain, because no flow along it is measured.
Verified: A source read for the register documents this link.
The provision is read in the ULII consolidated text.
- amendment: verified. The provision is read in the ULII consolidated text.
- mechanism: verified. Tax collected at source by the payer.
- implementation: verified. URA reports performance for the measure, so it was applied.
- response: no evidence. No source read describes how taxpayers responded.
- outcome: verified. URA reports a yield. It is an official attribution, not a causal estimate.
- wider: no evidence. No source read measures wider effects. No evidence found is not evidence of no effect.
Consequences
Graded against ten criteria. No composite score: a reform that raises money can still be regressive or costly to comply with, and one that loses revenue can serve a legitimate aim. Revenue effectiveness is graded by a stated rule; the rest only where a source speaks to them.
What worked
No criterion graded effective on the evidence read.
What did not
Revenue effectiveness
Reported yield over URA's forecast for FY2019/20: 8.3 percent.(graded by rule)
Ineffective
Open or not evaluated
Legal clarity and certainty
No source read for the register speaks to this criterion.
Not evaluated
Administrative feasibility
No source read for the register speaks to this criterion.
Not evaluated
Compliance cost
No source read for the register speaks to this criterion.
Not evaluated
Efficiency
No source read for the register speaks to this criterion.
Not evaluated
Investment and competitiveness
No source read for the register speaks to this criterion.
Not evaluated
Vertical and horizontal equity
No source read for the register speaks to this criterion.
Not evaluated
Distributional effect
No source read for the register speaks to this criterion.
Not evaluated
Implementation quality
No source read for the register speaks to this criterion.
Not evaluated
Unintended consequences
No source read for the register speaks to this criterion.
Not evaluated
Afterlife
No Tax Appeals Tribunal or court decision on this provision is on record yet. That is not evidence that none exists.
Pending verification
- The text of Act 14 of 2019 and the wording it replaced.
Sources
URA-ARR-1920
Annual Revenue Report FY 2019/20
Uganda Revenue Authority. 2020. Covers FY2019/20.
Desktop/Personal/URA DATA BOOKS AND REVENUE REPORTS/Annual Revenve Report FY 2019-20.pdf
Status: verified. Pages confirmed for this record in the source audit: 61 (PDF).
Table 20 (PDF page 50, printed 43) and Annex 3, the measure-level table (PDF pages 60 to 62, printed 53 to 55), read from page images. The file name misspells Revenue.
LRC-VAT-2023
Value Added Tax Act (Chapter 344), Revised Laws of Uganda, 2023 edition
Uganda Law Reform Commission revision, as downloaded from the Educite Virtual Library on 9 March 2026. 2023-12-31. Covers Revised and consolidated as at 31 December 2023; the history line lists amending Acts up to Act 20 of 2023.
Desktop/Personal/Tax Legislation and URA Returns/Value Added Tax Act Cap 344.pdf
Status: verified. Pages confirmed for this record in the source audit: 9 (PDF).
Supplied by the author on 21 October 2026 to replace the 2000 version kept under the same file name. Read with PyMuPDF; schedule pages 47 to 61 and sections 4 and 5 read for this register.