Amazon Web Services puts its Ugandan clients on notice over Value Added Tax

Amazon Web Services (AWS) has said that effective May 1, 2023, it will be issuing Value Added Tax (VAT) invoices to users of their accounts located in Uganda.

This will be in line with implementing the new tax imposed by the Uganda government on sales of electronic services to non-business customers in Uganda  under the Value Added Tax Amendment Bill, 2023

The framers of the Value Added Tax (VAT) Amendment 2023, want imported services, among them music, films and games, self-education packages, web-hosting, to be liable to pay the tax.

The same draft suggests that tax returns will be done and filed reflecting in the form of the United States Dollar (USD) currency as opposed to the current form which allows business owners to do the same in local currency thus Uganda Shillings.

According to AWS, from 1 May 2023, they will be issuing VAT invoices to AWS accounts located in Uganda for charges incurred from that date.

“Please review the content below and share the content with your internal teams, if applicable. Key internal teams may include Accounting/Controllership, Tax, and Accounts Payable/Vendor Management teams,” AWS said in an email to their clients.

According to AWS, Customer accounts without a valid Tax Registration Number (“TRN” but also known as a Tax Identification Number, VAT Number, VAT ID, or VAT Registration Number) will be charged VAT on service charges incurred from 1 May 2023.

However, customer accounts with a valid TRN will not be affected and AWS Europe will continue to invoice them without VAT.

“If you are a VAT-registered business and have a TRN, visit the Tax Settings page of the AWS Billing Console and confirm/update the TRN and Business Legal Address for your AWS account(s). • If you do not have a TRN, visit your account page (via My Account) of your AWS Console to confirm/update your contact address. Additionally, please visit the Payment Methods page of your AWS Console to confirm/update your billing address,” the company said.

“You can find further information about VAT in Uganda on the AWS Tax Help website. Please see the AWS Europe frequently asked questions (FAQs) for more general information. If you have additional questions after reviewing the FAQs, please create a case with Customer Support,” it added.