vat - Value added Tax Evading among Kampala Traders

by kiremerwa allan
(kampala)

Tax Question 1
Why do Kampala central traders evade vat (value added tax) ?

Answer:
There are number of reasons as why tax evasion would happen in any society. Some of these reasons may include ignorance or lack of enough awareness and sensitization, rampant corruption in the tax system and society at large among others…

Additionally you need to understand that out there on the streets; the one who is selling at the lowers prices will eventually make the sale. VAT is 18% addition to the price being paid, this means that If one has to choose pay all VAT without having considered any deductions, this trader will be selling expensive goods and sooner than later will be out of business. Therefore they have to find the best method of reducing tax payable so that can have competitively priced goods.

Tax Question 2
What is the role of the media in promoting vat compliance among Kampala central traders?
Media has greatly helped in the awareness and sensitization of the Kampala traders e.g through media sensitizations traders have been taught and urged to pay using more convenient ways like mobile money, URA branches in town to ease their accessibility to the authority for person to person support.

Tax Question 3
What are the challenges responsible for the persistence of vat non compliance?

Value Added Tax (VAT) is an indirect tax that is paid by a person who consumes or imports goods and/or services in Uganda. Traders will always resort to evading tax as long as the resultant prices of their products are not competitive enough on the market to make the sale.

For assistance with professional VAT Tax filling Services with the Uganda Revenue Authority, please contact us here to appoint a certified Africa Uganda Tax Consultant for assistance.