Uganda exempts locally made electric vehicles, EV charging and ethanol cooking stoves from VAT from 1 July 2024

What changed in detail

Uganda’s Value Added Tax (Amendment) Act, 2024, assented to on 15 July 2024 and in force from 1 July 2024, amends both schedules of the Value Added Tax Act, Cap. 349.

Second Schedule (exempt supplies), section 7. In paragraph 1 the Act:

• repeals subparagraph (b);
• inserts (sf), the supply of a locally manufactured electric vehicle or of a locally fabricated EV frame and body; (sg), the supply of EV charging equipment or EV charging services; and (sh), the supply of fuel-ethanol cooking stoves assembled in Uganda, up to 30 June 2028;
• adds the word “safety” after “lifesaving gear” in (x);
• narrows the energy-projects exemption in (dda) so that it does not include goods and services used for personal and domestic use;
• adds item (viii) to subparagraph (pp): a person who manufactures EVs, electric batteries or EV charging equipment, or fabricates EV frames and bodies;
• repeals (ggg)(i).

First Schedule, section 6. Adds the African Reinsurance Corporation (Africa Re), the Independent Regulatory Board of the East African Power Pool, and the Islamic Cooperation for the Development of the Private Sector to the listed institutions.

What it means

The EV and charging exemptions carry no end date; the ethanol-stove exemption lapses after 30 June 2028 unless extended. Exempt is not zero-rated: suppliers of these items charge no VAT but cannot recover input VAT on their costs.

These items reflect the 2024 Act; the weekly feed records no later change to them. Uganda revisits the Second Schedule most years, so confirm the current consolidated schedule, by paragraph letter, before relying on any item.