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Value Added Tax

Republic of Burundi

DetailsDescription
VAT registration threshold Gross Turnover FBU 100,000,000 (approximately US$ 82,000)
Tax rates
  • 18% standard rate
  • 10% on imported food products and agricultural processed goods transformed in Burundi and agricultural inputs
  • 0% on exports and international transport
Recovery of input VAT (VAT inputs deduction) Recovery of VAT on some items:
  • inputs related to non-taxables activities
  • inputs on transport, restaurant and hotel accommodation services, entertainment services if not supplied in course of business.
Classification of supplies Supplies are classified as either taxable or exempt
Due date for filling of VAT returns and payment of VAT due Not later than the 15th day of the month following the month in which the taxable supplies were made
VAT remission procedures The VAT law does not provide for refund of tax paid before remission is granted. Application for remission must be made prior to purchase.
The approved application are delivered to OBR by the applicant. At OBR, the documents are verified based on the decision of the minister for remission.
Categories of exempt and zero rated supplies Burundi specify the exempt activities
Burundi specifies that agricultural and livestock products are VAT exempt when sold by owners and not withstanding turnover thresholds
Burundi’s exemption covers pharmaceuticals in addition to the services
Burundi exempts only international travel
Burundi exempts army services rendered by social organisations
When it comes to zero rating of goods and services, all EAC countries’ exports fall in this category
Taxation of imported services There is reverse charge on imported services
Partial apportionment There is apportionment rules determined based on the exempted sales to the total sales
VAT refunds and refund processes
  • Refund of VAT is done by the financial administration on fund exclusively created for reimbursement of tax credits;
  • VAT is refunded by cheque after clearance of tax debts by the taxpayer;
  • Application for refund of tax credit is addressed to the tax authority the latest on 15th of the months following the financial year or quarter;
  • Refund within 90 days from the application. Failure to refund within that period, a penalty of 1% per month of delay will be paid.

 

Republic of Kenya

DetailsDescription
VAT registration threshold Gross Turnover KShs 5m per annum
Tax rates 16% or 0%
Recovery of input VAT Recovery of VAT on some items e.g. passenger cars, repairs and maintenance of passenger cars, restaurant and hotel accommodation services, entertainment services if not supplied in course of business.
Classification of supplies Supplies are classified as either taxable or exempt
Due date for filling of VAT returns and payment of VAT due The return should be filed on or before 20th day following the month end.
Any tax liability to be made on or before 20th day following the month end.
VAT remission procedures Remission is not applicable.
Categories of exempt and zero rated supplies The supplies which are exempt and zero-rated are listed in the First and Second Schedules of the VAT Act, 2013. All other supplies are now taxable at the standard rate of 16%.
Further, the list of public bodies, privileged persons and institutions with zero rated status has are also listed in the Second Schedule.
Taxation of imported services If a service is imported by a registered person, a registered person shall be deemed to have made a taxable supply to himself and shall account for the tax as follows:
  1. A registered person will get credit for an amount of input tax proportionate to the supply that’s entitled to input tax credit.
  2. Where a full input tax credit is payable on the imported service, the value of the taxable services shall be reduced to zero.
Partial apportionment Input tax relating to making of partly taxable supplies and partly other uses is determined as follows:
  • deductible in full, if taxable supplies are more than 90% of the total supplies
  • not deductible, if taxable supplies are less than 10% of the total supplies
  • apportioned for deduction when 90% > taxable supplies as a percentage of total supplies < 10%
VAT refunds and refund processes Where excess input over output is due to making zero rated supplies, then VAT refund is due and should be lodged within 12 months period.

 

Republic of Rwanda

DetailsDescription
VAT registration threshold Gross Turnover Rwf 20,000,000 (approximately US$ 34,500)
Tax rates 18% and 0%
Recovery of input VAT Input VAT incurred is restricted to the extent that the supply or importation is acquired in making taxable supplies.
Classification of supplies Supplies are classified as either taxable or exempt.
Due date for filling of VAT returns and payment of VAT due Within fifteen (15) days after the end of the period of the value added tax, a registered taxpayer must submit value added tax declaration, in accordance with forms and formalities determined by the Commissioner General. For less than two hundred million Rwandan francs (Rwf 200,000,000), the value added tax declaration is quarterly and shall be submitted with payment of the tax due within fifteen (15) days after the end of the quarter. However, taxpayers whose annual turnover is equal to or less than two hundred million Rwandan francs (Rwf 200,000,000) who wish to register
VAT remission procedures N/A
Categories of exempt and zero rated supplies Two lists are provided under Article One: Zero-rated goods and services, and Article2: Exempted goods and services
Partial apportionment There is apportionment rules determined based on the exempted sales to the total sales
VAT refunds and refund processes If, during a particular prescribed taxation period, the input tax exceeds output tax, the Commissioner General shall refund the supplier the due amount to which the supplier stands in credit by reason of the excess, on receipt of the relevant tax return document within thirty (30) days:
  • 1% after one day from the expiry of the prescribed period for tax declaration;
  • 2% after receipt of proof of the last outstanding tax declaration. However, the value added tax paid by registered investors shall be refunded within a period not exceeding fifteen (15) days after receipt by the Revenue Authority of the relevant application.

Prior to payment, the Commissioner General may order for verification of the claim for refund.

 

United Republic of Tanzania

DetailsDescription
VAT registration threshold Gross Turnover TShs 40m per annum
Tax rates 18% or 0%
Recovery of input VAT This is restricted on taxable supplies. Some services such as insurance are exempt and input incurred in respect of these services is not claimable.
Classification of supplies Supplies are classified as either taxable or goods with special relief.
Due date for filling of VAT returns and payment of VAT due Monthly VAT returns and any payments are due on the last working day of following month.
For VAT on the importation of goods, the due date is when customs duty is payable.
VAT remission procedures  
Categories of exempt and zero rated supplies Entities entitled to special relief either pay VAT at 10% or benefit from full relief
Taxation of imported services Reverse VAT is applicable.
Partial apportionment Applicable where the input VAT is incurred in making a composite supply, hence the need to apportion.
VAT refunds and refund processes Standard: Six months after the due date of the tax returns on which the refund became due or the submission of the last VAT returns for that six month period, whichever is later.
“Regular repayment” :Businesses in a constant refund position may apply for authorisation to lodge claims on a monthly basis.

 

Republic of Uganda

DetailsDescription
VAT registration threshold Gross Turnover UShs 50m per annum
Tax rates 18% or 0%
Recovery of input VAT Restricted to taxable supplies only.
Classification of supplies Supplies are classified as either taxable or exempt.
Due date for filling of VAT returns and payment of VAT due 15th day of the next month
Categories of exempt and zero rated supplies Specified in the first and second schedule of the Act.
Taxation of imported services Effective 1 July 2011, taxpayers were no longer required to prepare self-billed invoices in respect to imported services. Therefore, VAT accounted for on imported services is not claimable as input VAT.
Partial apportionment Applicable where the input VAT is incurred in making a composite supply, hence the need to apportion.
VAT refunds and refund processes Standard: Six months after the due date of the tax returns on which the refund became due or the submission of the last VAT returns for that six month period, whichever is later.
“Regular repayment”: Businesses in a constant refund position may apply for authorisation to lodge claims on a monthly basis.

East African Community
EAC Close
Afrika Mashariki Road
P.O. Box 1096
Arusha
United Republic of Tanzania

Tel: +255 (0)27 216 2100
Fax: +255 (0)27 216 2190
Email: eac@eachq.org