Hotel Owners Push Back on $5M VAT Threshold in Proposed Tax Amendment Bill

Описание: Uganda Hotel Owner’s Association has expressed dissatisfaction over the conditions placed in the proposed Value Added Tax Amendment Bill 2026 which seeks to introduce the Input Tax credit initiative.
Government wants to allow input credit for VAT incurred within two years prior to commissioning the facility for the construction phase of a hotel where the developer invests at least USD 10 million for a foreigner and USD 5 million for a citizen.
Hotel owners welcome the move but decry the USD 5 Million proposing USD 1.5 Million for a citizen.
In the proposed Value Added Tax Amendment Bill 2026 the government seeks to promote infrastructure that supports the tourism sector by allowing developers of qualifying tourism facilities to claim input VAT incurred during the construction phase. This has been welcomed by the Hotel Owners through their umbrella Body, the Uganda Hotel Owners Association