Summary of ruling

• The Applicant manufactures and processes dairy products. The Respondent issued a VAT assessment to the tune of Ushs. 346,147,110 for the period of 1^st July 2017 to 30^th June 2021.
• The Applicant objected on ground that the company deals in processed milk which are exempt supplies.
• The Respondent disallowed the objection on ground that yoghurt is not processed milk hence not an exempt supply.
• Yoghurt is not milk. Paragraph 1 (jjj) of the 2^nd Schedule to the VAT Act specifically states ‘supply of processed milk.’ It doesn’t extend to milk products.
• Yoghurt is not processed milk and is therefore not exempt from VAT.
• Application dismissed.