VAT on Property in Uganda: Commercial vs Residential

Is VAT charged on property in Uganda?

Sometimes. VAT is 18%, and it is charged by VAT-registered businesses on taxable supplies. URA's guide says taxable supplies are goods or services supplied by a taxable person, meaning a person registered or required to register. Whether a property sale or letting is taxable depends on two questions: who is the seller, and what exactly is being sold or let.

The Act text we read is an older consolidated copy of Cap 349, and the VAT Act has been amended several times, including in 2024 and 2026. Confirm the current schedule with URA or a tax adviser before you rely on any line above. For the general list of property costs, see Property tax Uganda.

Is VAT due on commercial property?

It can be, in two ways. First, if the property is commercial or a service apartment and the income from it is above the registration threshold, the owner must register for VAT and charge VAT on the rent. URA's real estate guide (October 2022) gave the threshold as UGX 150 million a year, or UGX 37.5 million in any three months. URA's notice and Dentons report that the Value Added Tax (Amendment) Act, 2026 raised the annual registration threshold from UGX 150 million to UGX 300 million from 1 July 2026. We did not find the new quarterly figure, so ask URA how the three-month test now works.

Second, a VAT-registered seller who sells improved land or commercial premises charges 18% on the sale. The Daily Monitor reported in 2023, from URA officials, that a sale of improved land or commercial premises above the threshold attracts VAT of 18%. A worked case: a VAT-registered company sells a developed commercial building for UGX 1,000,000,000 excluding VAT. VAT is UGX 180,000,000, so the buyer pays UGX 1,180,000,000 unless the contract says the price already includes VAT. Always ask which it is. Buyers who are VAT-registered can usually claim the VAT back as input tax if they hold an e-invoice, which URA says is mandatory for VAT-registered taxpayers.

If you are buying an income property, our Commercial Building Due Diligence in Uganda page lists the checks, and Rental Yields in Kampala by Property Type shows how tax affects returns.

Is VAT charged on buying a house or a plot?

For most private buyers, no. VAT applies to the supply of a taxable person, and a person who is not in business and not registered does not charge it. A family selling its home or a plot is not making a taxable supply. The picture changes when the seller is a developer or company that is VAT-registered. A developer selling new houses is selling developed property, and URA says developed land is charged VAT at the standard rate.

Two cautions. A Daily Monitor guest commentary in 2022 warned that the line between improved and unimproved land is thin: it argued that anything physical and visible to a buyer, such as access roads or extended water or power, can make land improved even if vacant. We found that as one adviser's view, not as URA wording, but it matters for subdivided estates. Second, a seller who turns a home into an office may be treated as holding a business asset; see tax on sale of land.

Ask every seller who is a company or developer: is the price inclusive of VAT, and will you issue an e-invoice? Put the answer in writing, because it can add 18% to your cost. Compare it with the other charges, such as stamp duty on land.

What is the current VAT threshold, and are the claims reliable?

Several numbers are in circulation, and they come from different years.

• UGX 150 million: the annual threshold in URA's 2022 guide and in the 2023 Daily Monitor article. It was the threshold until the 2026 amendment.
• UGX 300 million: the new annual threshold from 1 July 2026, per URA's notice on the revised threshold and Dentons' summary of the Value Added Tax (Amendment) Act, 2026.
• UGX 37.5 million in three months: the quarterly test in URA's 2022 guide. We could not confirm its 2026 value.
• 18%: the standard rate, confirmed by URA and Dentons.

If a seller or agent tells you a different threshold, ask for the source. We have not found a rule that makes VAT depend on the price of the property alone. It depends on the seller's status and the type of property. As of November 2026, treat the UGX 300 million figure as the registration threshold and confirm it with URA.

What does the hasVat field on our listings mean?

Every listing on Land & Property has a field called hasVat. The field is meant to show whether VAT is charged on the listing. In our snapshot of 3 November 2026, all 93 published listings show hasVat as false, so none of them states that VAT applies. That does not prove that no VAT is due on a sale; it only means no listing is marked as carrying VAT. If you are a seller who is VAT-registered, you should tell buyers whether your price includes VAT. If you are a buyer, ask. You can browse plot listings or see Selling a Commercial Building or Rental Block if you are selling income property.

What should I ask before I sign?

Put these questions to the seller and your lawyer in writing: Is the seller VAT-registered? Is the land improved or unimproved, and why? Is the price inclusive or exclusive of VAT? Will you issue an e-invoice? If this is a going concern sale, will both parties be registered and notify URA within 21 days? Is the property valued for a bank loan, and does the valuer treat VAT as part of the price? Our guide to Property Valuation for Bank Loans in Uganda explains that last point. You can ask our team on WhatsApp or by email if a seller quotes a figure you cannot check.

Listings available now

Live from Land & Property on 4 November 2026. Prices are the sellers' asking prices.

• 25 Decimals in Bunga at Ugx820m Buziga, Kampala · Plot UGX 820,000,000
• 1 acre for sale in Kololo at $2,500,000 Kololo, Kampala · Plot UGX 9,250,000,000
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• 33 Decimals in Bukoto Town at Ugx1.4bn Bukoto, Kampala · Plot UGX 1,400,000,000
• 53 decimals commercial Plot in Bukoto Bukoto, Kampala · Plot UGX 3,500,000,000
• 71 decimals in Kira Bulindo at Ugx500m Kira, Wakiso · Plot UGX 500,000,000

Frequently asked questions

Related guides

• Property Costs, Taxes and Mortgages in Uganda
• Stamp Duty on Land and Property in Uganda
• Rental Yields in Kampala by Property Type
• Property Valuation for Bank Loans in Uganda
• Commercial Building Due Diligence in Uganda
• Selling a Commercial Building or Rental Block