By Our Reporter
Uganda Revenue Authority (URA) has revealed that it will start collecting taxes from non-resident online platforms that are business-oriented in Uganda.
It highlighted that platforms like Netflix, Apple Music, Amazon, and Facebook, seem to be making huge amounts of money without being taxed, which cripples resident platforms, hence the decision to tax them.
The Commissioner-General of URA John Musinguzi, told the press that the taxation would start in July this month. He also said that the collection of this tax has been delayed by the lengthy discussions with these companies, although they have finally agreed to pay the tax.
Under section 16 (2) of the VAT Act, a non-resident person who supplies electronic services to a non-taxable person in Uganda makes a taxable supply. Such a supplier is therefore required to charge VAT on the supply, file quarterly returns, and pay VAT due on supply within fifteen days from the end of each quarter.