URA Brings 12 New Business Sectors Into EFRIS Drive as Uganda Embraces Smarter, Fairer Digital Trade
By Amos Tayebwa
KAMPALA – The small “omuntu wawansi” business person has not been forgotten in Uganda’s expanding digital tax revolution.
As the Uganda Revenue Authority (URA) deepens the rollout of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), small businesses operating in the newly targeted sectors with annual turnover below Shs10 million have been given room to continue operating without the mandatory requirement to issue EFRIS e-invoices or e-receipts.
The exemption is contained in URA’s latest guidance on the additional categories of taxpayers required to use EFRIS.
Under the arrangement, small businesses in the listed sectors earning less than Shs10 million in annual turnover are not required to issue e-invoices or e-receipts through EFRIS, although they can voluntarily adopt the system if they wish.
Similarly, taxpayers earning rental income of less than Shs2.82 million annually are not required to issue EFRIS e-invoices or e-receipts.
This means that while Uganda is rapidly moving towards a fully digitalised business and tax environment, the smallest players have not been thrown into the deep end.
Instead, the system is being rolled out with consideration for the size and capacity of businesses.
EFRIS, which stands for Electronic Fiscal Receipting and Invoicing Solution, is designed to allow business transaction information to be transmitted to URA in real time when an electronic receipt or invoice is generated.
URA says the system is intended to improve the accuracy of business records, make tax administration more efficient, reduce unfair competition and make it easier for businesses to track their transactions.
The authority is now widening the EFRIS net.
Effective July 1, 2025, businesses operating in 12 additional sectors were required to use EFRIS, in addition to the existing obligation covering VAT-registered taxpayers.
The sectors include manufacturing; mining and quarrying; water supply, sewerage and waste management; electricity, gas, steam and air-conditioning supply; construction; transportation and storage; accommodation and food services; information technology and communication; real estate; professional, scientific and technical activities; arts, entertainment and recreation; and wholesale and retail of fuel.
There are specific exclusions within the rollout, including passenger land transport providers such as taxis, boda-bodas, shuttles and buses, as well as non-resident digital service providers required to pay digital service tax.
EFRIS becoming a passport to formal business
Beyond simply being a tax compliance tool, EFRIS is increasingly becoming part of the way businesses transact with each other.
For businesses required to use EFRIS, an electronic invoice or receipt is becoming an important document in commercial transactions.
URA has also clarified that no income tax deduction will be allowed for an expense that is not supported by an e-invoice or e-receipt where the supplier is required to use EFRIS.
In other words, for businesses operating within the mandatory EFRIS categories, having an EFRIS-compliant supplier is increasingly important.
A company buying goods or services from another business will want the transaction properly supported by an electronic fiscal document.
The e-invoice or e-receipt must also carry the buyer’s Business Registration Number (BRN), National Identification Number (NIN) or Taxpayer Identification Number (TIN) for business transactions.
This is gradually changing the way businesses buy and sell.
An EFRIS receipt is no longer simply a piece of paper proving that money changed hands. It is becoming a digital business record that can support accounting, tax declarations and legitimate business expenses.
URA says the digital system also stores transaction information electronically, reducing the risk of businesses losing physical invoices and receipts.
For businesses, this can mean better bookkeeping, easier transaction tracking and improved management of sales.
For the taxman, it means better visibility of commercial activity.
For honest businesses, it can mean a fairer marketplace because businesses are increasingly competing on the basis of their actual commercial activity rather than the ability to conceal sales.
Uganda joining the regional digital business movement
Uganda is not alone in this journey.
Across East Africa, revenue authorities have increasingly embraced electronic invoicing and fiscalisation as governments modernise tax administration.
Kenya, for instance, has rolled out the Electronic Tax Invoice Management System (eTIMS), with the Kenya Revenue Authority saying persons engaged in business are required to onboard eTIMS and issue electronic tax invoices.
Rwanda has operated Electronic Billing Machines (EBM) for years, with the Rwanda Revenue Authority requiring VAT-registered taxpayers to use electronic invoicing systems for their sales. Rwanda has also expanded electronic billing solutions to cater for different categories of taxpayers and business sizes.
Tanzania, too, operates electronic fiscal receipt systems through which customers can verify electronically generated receipts.
The regional direction is therefore clear: East African businesses are steadily moving away from purely manual receipts and invoices towards electronic systems that provide governments and businesses with reliable transaction records.
Uganda’s EFRIS rollout places local businesses firmly within that broader digital transformation.
URA promises more sensitisation
But URA says the transformation will not simply be about enforcement.
The authority says it will continue engaging taxpayers, explaining the system and helping businesses understand how EFRIS works and the advantages that come with it.
Robert Kalumba, Assistant Commissioner, Public and Corporate Affairs at URA, said the authority will beef up nationwide sensitisation campaigns for EFRIS.
The increased sensitisation is expected to target different business sectors and help taxpayers understand their obligations, the available EFRIS platforms and how to use the system.
URA has already been conducting taxpayer education and outreach programmes across the country.
According to URA’s EFRIS handbook, the authority has used tax Barazas, media engagements, workshops, webinars, tax hubs and other outreach programmes to educate taxpayers about EFRIS. The authority has also translated tax information into a number of local languages to reach more taxpayers.
The message from the authority is therefore increasingly about helping businesses understand and embrace the digital shift rather than simply waiting to punish those who have not yet understood it.
Taxpayers requiring more information on EFRIS registration, available platforms and usage guidelines are encouraged to access the relevant resources on the URA portal: https://www.ura.go.ug
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