By Jumah Kakomo
Uganda Revenue Authority URA has embarked on an enforcement drive regarding the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) and digital tracking solution across the country.
EFRIS orElectronic Fiscal Receipting and Invoicing Solution was introduced to improve and ease conducting of business in Uganda. It refers to the use of Electronic Fiscal Devices (EFDs), e-Invoicing, or direct communication with business transaction systems to handle the issuance of e-invoices in accordance with the Tax Procedures Code Act 2014.
Electronic Fiscal Receipting and Invoicing Solution (EFRIS) is an initiative under the Domestic Revenue Mobilization Program whose aim is to address the tax administration challenges relating to business transactions and issuance of receipts.
It is a new smart business solution used to record business transactions and share the information with URA in real time (concurrently).
Addressing the media on Wednesday during the ongoing sensitization campaign in the central business Kampala specifically in Kikuubo plus door to door services on compliance to different taxes by Uganda revenue authority domestic tax department team, the manager of EFRIS at the authority (URA) Hassan Wasajja noted that the system involves the use of e-invoicing through the URA web portal and direct communication with business transaction systems, electronic Fiscal Devices (EFDs) and Electronic Dispenser Controllers to manage the issuance of e-receipts and e-invoices.
He added that the enforcement is not targeting people in Kampala but it is cutting across the country to ensure that all taxpayers that have been required to use these technologies are fully using these solutions
He says the introduction of e-receipting and invoicing is aimed at addressing challenges including suppression of sales where some businesses, especially those that deal in general goods, were avoiding generating receipts and so their actual turnover was not reflecting in their tax returns. According to Wasajja, the Efris is mandatory for all VAT registered taxpayers to enroll on the system. However, he revealed that those still outside this category are advised to implement EFRIS and take advantage of the various benefits.
He highlighted some of the benefits of Efris which include among others; Refund claims using e-receipts or e-invoices shall be fast-tracked given that the information shall be available in the system which is a step in enabling URA avail taxpayers with prefilled tax returns in future to minimize delays and costs involved in filing tax returns.
According to Wasajja, ever since the Efris was introduced in 2021, there has been a significant improvement in the collection of both VAT and digital tracking solution (DTS) across the country despite it was implemented in
Phased approach with vat registered taxpayers He urged all taxpayers to demand for E-receipts after making purchases at all time
Asked about the penalties for non-compliance in regard to EFRIS,Wasajja revealed that section 73b of the Tax Procedures Code Act 2014 spells out these penalties which include; A taxpayer specified in the gazette, for whom it shall be mandatory to use EFRIS and does not adopt the use of EFRIS is liable to pay a penal tax equivalent to the tax due on the goods or services, or four hundred currency points, whichever is higher
Others include a person who attempts to acquire or acquires an EFD that is not authenticated by URA commits an offence and is liable on conviction, to a term of imprisonment not exceeding three years or a fine not exceeding three hundred currency points, or both.
A taxpayer specified in the gazette, for whom it shall be mandatory to use EFRIS and does not issue an e-receipt or e-invoice or tampers with an EFD is liable to pay a penal tax equivalent to the tax due on the goods or services or three hundred currency points, whichever is higher.
According to Wasajja, the enforcement drive commenced on Monday and is ending next week
