TAT Ruling on the condition for VAT exemption in respect to Services Incidental to a supply of exempt imported goods
The Tax Appeals Tribunal has ruled in favour of the Uganda Revenue Authority stating that the value of incidental services to VAT exempt imported goods must be included in the customs value of the goods for the services to also qualify for the VAT exemption.
TAT has ruled in favour of URA stating that taxpayers must maintain and provide sufficient evidence to prove that purchases occurred, in order to claim the respective input VAT.
The tax dispute arose from a stamp duty assessment issued by the URA to an insurance company where the URA treated additional endorsements amending beneficiary details as separate instruments subject to further stamp duty.
TAT has ruled that discounts granted to distributors by manufacturers should not be deducted from the ex-factory price for purposes of computing Local Excise Duty on the products.
