New VAT on hotels in Uganda

We have just learned that, subject to parliamentary approval (which will almost certainly happen), all hotels in Uganda will be required to charge 18% VAT (subject to a minimum turnover equivalent to US$20,000) as of 1 July 2013. This means that you should expect immediate increases of up to 18% for accommodation for anything but the most basic of hotels.  The exception is Kampala, where hotels already charge VAT and this is incorporated into the rack rates.


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