Brief Facts:
The Applicant entered into an agreement with Ubuntu Net Alliance (UNA), a foreign company based in Malawi, for the provision of internet-related services. The Respondent issued a WHT assessment of UGX 936,488,468.3 and a VAT assessment of UGX 868,918,762 to the Applicant for the said period on the grounds that it did not declare WHT and VAT on imported services, hence the current Application.
Issues for Determination:
- Whether the Applicant is liable to pay the tax assessed?
- What remedies are available to the parties?
Tax Appeals Tribunal Decision:
- For a service to fall within the ambit of imported services, the service must be rendered by a supplier who is outside Uganda; the recipient of the service must be in Uganda; the service must be utilised or consumed in Uganda, and be taxable.
- The Ubuntu Alliance had no presence in Uganda, and the internet services were delivered remotely, which constituted an import of services.
The Applicant was held liable to pay the VAT amounting to UGX 868,918,762, to the Respondent.
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