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Clarification by the Uganda Revenue Authority regarding the Electronic Fiscal Reporting and Invoicing Solution (EFRIS), emphasizing that it is a digital platform facilitating VAT billing information exchange, not a tax. URA addressed concerns raised by trader associations about inequitable taxation practices and challenges with EFRIS adoption.

The Uganda Revenue Authority (URA) clarified that the Electronic Fiscal Reporting and Invoicing Solution (EFRIS) serves as a digital platform facilitating the direct exchange of value-added tax (VAT) billing information between businesses and the URA, emphasizing that it is not a tax imposition but a technological mechanism.

The Kampala Capital City Traders Association (KACITA) and the Federation of Uganda Traders Association (FUTA) have voiced concerns regarding what they perceive as inequitable taxation practices enforced by the URA, particularly highlighting challenges associated with the adoption of EFRIS.

Traders have voiced grievances, labeling EFRIS as double taxation and expressing confusion regarding automated sales records and the levy system.

John Kabanda, President of FUTA, stated, “We have extensively communicated our concerns regarding EFRIS, high taxes, double taxation, VAT, among other issues, to various governmental bodies, including the URA, the Ministry of Trade, and the Ministry of Finance. We contend that EFRIS, while not inherently flawed, is impractical for traders, especially those operating small-scale businesses.”

In a statement released on Tuesday, April 9th, URA reiterated that EFRIS is not a tax, underscoring its role as a tool for facilitating real-time monitoring of business transactions to enhance transparency and efficiency in VAT collection and remittance.

URA emphasized that EFRIS aims to address various challenges such as unfair tax assessment, inadequate record-keeping, and complex tax procedures, through accessible applications like the EFRIS mobile app and desktop software, supplemented by comprehensive training initiatives.

Furthermore, URA highlighted the positive impact of EFRIS compliance, citing a significant increase in reported sales and tax contributions within the Central Business District (CBD), indicating the necessity of transitioning towards a more transparent tax system.

Acknowledging the challenges of adaptation, URA reaffirmed its commitment to supporting businesses in their transition to EFRIS compliance, offering specialized assistance to navigate the evolving business environment and contribute to Uganda’s economic development.