What is Uganda Tax and how it applies to Araati products? #

In Uganda, taxes on products sold through platforms like Araati are mainly governed by the Uganda Revenue Authority (URA). The most common tax that applies to products is Value Added Tax (VAT).

???? 1. Value Added Tax (VAT) in Uganda #

The standard VAT rate in Uganda is:

• 18% VAT on most goods and services

This means whenever you sell a taxable product, a percentage of the product price may be charged as tax.

????️ 2. How VAT applies to Araati products #

When you list products on Araati:

???? A. VAT may be included in your selling price #

• You can set product prices including VAT
• Example: If a product is UGX 100,000, VAT may be part of that amount

???? B. VAT may be added at checkout #

• The system will automatically add TAX to the customer’s total if you select it under Pricing & Taxes>Tax Group when adding a product.
• Example:
  • Product price: UGX 100,000
  • VAT (18%): UGX 18,000
  • Total: UGX 118,000

???? Simple explanation #

Uganda tax (VAT) is a government charge added to most products sold. On Araati, it ensures every sale is legally recorded and taxed properly, either inside the product price or added during checkout.