Therefore, as soon as say a bale of used clothes arrives in Uganda from abroad, it is assumed that value has been added to the goods, so the importer has to pay VAT of 18% as required by law.  If it is a large-scale importer who is going to distribute the bales of clothes to other VAT-registered companies that sell them to other VAT-registered businesses, the input/output VAT process must happen as discussed above.