Summary:

• The Uganda Revenue Authority (URA) will waive penalties for traders who failed to issue e-receipts and e-invoices (EFRIS) due to initial implementation challenges. The waiver targets traders from Kikuubo and the Central Business District. Affected traders can visit URA offices from May 27 to May 31, 2024, for assistance and training on the EFRIS system.

KAMPALA, (Examiner) – The Uganda Revenue Authority (URA) has announced that it will waive outstanding penalties for traders who failed to issue e-receipts and e-invoices, also known as EFRIS Receipts and invoices. The waiver will apply to traders who were new to the EFRIS technology, particularly those from Kikuubo and the Central Business District (CBD). The traders had protested the implementation of EFRIS, citing challenges such as high compliance costs, lack of understanding of the system, and the requirement for all traders to use it regardless of their VAT registration status.

According to URA, the waiver will be available to affected traders who visit their offices from May 27 to May 31, 2024. During this period, URA will also provide taxpayers with insufficient understanding of the new EFRIS system with relevant knowledge for compliance going forward. Traders from other districts have been advised to visit the nearest URA regional offices for similar assistance.

EFRIS is a digital system that facilitates the direct transfer of Value Added Tax (VAT) billing information between businesses and URA. It was implemented in 2021 to address tax administration challenges relating to business transactions and the issuance of receipts. The system helps URA assess the right taxes using accurate and authentically generated information, and enables businesses to thrive with improved record-keeping and monitored stock and sales.

Despite the challenges faced by traders, President Museveni has maintained the use of EFRIS and advised URA to suspend fines and penalties for non-compliant traders and instead encourage dialogue between taxpayers and tax collectors. URA has encouraged all traders already using EFRIS technology to continue complying with all EFRIS laws and regulations to avoid enforcement actions and maintain a business-friendly environment.