By Jumah Kakomo
Following various constant serious complaints by the business community regarding the EFRIS system among other issues, Uganda Revenue Authority URA has clarified that the system doesn’t apply to wholesale or retail shops but rather they are required to get E- receipts from their suppliers.
The clarification has been made by the Authority’s Commissioner General John Musinguzi Rujoki on Friday during a meeting with Kikuubo traders who subsequently informed them that they are only required to get E- receipts but not to enroll on EFRIS system as its been the case.
What is Efris?
Electronic Fiscal Receipting and Invoicing Solution (EFRIS) is an automated compliance process established by the URA which handles the allocation and centralized tracking of all invoices and receipts by specified taxpayers in Uganda.
According to URA, EFRIS is meant to improve the business efficiencies and reduce the cost of compliance through improved record keeping among taxpayers and mitigate tax administration shortfalls while promoting compliance efficiency.
On 1st January 2021, URA gave a directive to all VAT- Registered taxpayers of mandatory use of the EFRIS system.
However, the angry and disgruntled traders raised various concerns regarding the system and the authority in general which they say are greatly affecting them and pushing them out of businesses.
Musiime Deus, a member of Kikuubo business community raised concerns of double taxations, ignorance of the EFRIS system due to lack of sensitization about the authority initiatives.
Annet Mulungi Nalongo also appealed to URA to always engage stakeholders in various initiatives before they are fully enforced.
Annet Tusiime raised a concern of the authority’ slow online services and the high taxes imposed on them which leads them to work in deficits.
In his response, the authority commissioner General John Rujoki Musinguzi noted that EFRIS is mandatory for all VAT registered taxpayers to enroll on the system but not on shops.
However he urged the traders to always ask for E-receipt from the manufacturers/suppliers to enable a conducive working environment and thus ensure effective service delivery between the authority and the traders.
“Currently, the system is entitled to be utilized by big companies and commencing with November, we are going to conduct more sensitization to the masses regarding the system so that they thoroughly understands it
He also urged the traders to always be vigilant about Fraudsters who disguise in the name of URA to defraud the public.
“From today onwards any person who comes to you asking for EFRIS is not our employee because you are not part of the system and I urge you not to pay any cash to whoever asks it because you all know how URA does its work.” Musinguzi stated.
Musinguzi further appealed to the traders to liaise with the authority to run their businesses peacefully adding that the authority officials will always be available on the ground to ensure that businesses run smoothly.
Some of the key Benefits of EFRIS according to URA.
Refund claims using e-receipts or e-invoices are fast-tracked since the information is available on the system
Taxpayers are in position to track and validate business transactions in real time for efficient business management. (Proper book keeping and sales management).
The solution eliminates the risk of physical loss of tax invoices as transactional data since copies are digitally stored in the system.
Fair assessments of taxpayers’ tax positions which reduces unfair competition in business.
