Tax on educational equipment?

by William
(Kampala)

Question: I work with the Department of Electrical Engineering at Makerere University. I am trying to procure some equipment for our department laboratories.

I would like to know what tax I should expect to pay.

Answer:As a person procuring educational materials there is no tax burden on your part, instead the tax burden is on the supplier’s part.

However, under the Third Schedule of VAT Act Cap 349, educational materials are categorized under zero rated supplies, this because the rate of tax imposed on such taxable supplies is zero (i.e. the VAT rate applicable is 0% in contrast to the standard rate of 18%).

These educational materials refer to materials suitable for use only in public libraries and educational establishments like technical colleges or universities.