EFRIS IS FREE, NOT A TAX! URA Assures Construction Hardware Dealers, Warns Against Selective Invoicing
The Uganda Revenue Authority (URA) has moved to clear the air over persistent confusion surrounding the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), insisting that the system is free and is not a tax.
URA made the clarification as it sensitised members of the Construction Hardware Dealers Association (CHADA) at Hotel Africana yesterday, with officials urging traders and suppliers to embrace EFRIS and comply with its requirements.
Hafsah Seguya, Supervisor of Tax Education Outreach, said EFRIS does not impose an additional tax on businesses but is a digital system designed to manage transactions and monitor Value Added Tax (VAT).
“EFRIS is free and is not a tax, as some people allege. It’s a system that manages your transactions and monitors Value Added Tax. URA is willing to train your staff on how to use EFRIS,” Seguya said.
The clarification comes amid continued misconceptions among taxpayers, some of whom have reportedly viewed EFRIS as another tax burden on businesses.
URA officials, however, said the system is intended to improve transparency, strengthen transaction records and make it easier for businesses to manage their operations.
HARDWARE DEALERS WARNED
Edith Kembabazi, Supervisor of Field Management, urged taxpayers in the construction sector, including hardware dealers and suppliers, to familiarise themselves with EFRIS and understand when and how it should be used.
She said traders are expected to use EFRIS when selling goods, moving merchandise from one location to another and when purchasing goods from manufacturers or suppliers.
“We expect you to use EFRIS in selling your goods, moving your goods from one place to another and requesting an e-receipt when purchasing goods from manufacturers or suppliers. When you don’t, then you are supporting non-compliance,” Kembabazi said.
Her warning puts hardware dealers and other players in the construction supply chain on notice as URA steps up efforts to ensure that transactions are properly recorded.
URA WARNS AGAINST ‘SELECTIVE’ INVOICING
Rodgers Senfuma, Acting Manager of the Large Taxpayers Office, warned businesses against selectively issuing invoices and e-receipts.
Senfuma said URA has identified cases where some transactions are deliberately left without invoices, a practice he described as a major compliance challenge within the hardware sector.
“We have selective invoicing. There are some transactions that we have discovered which are not invoiced. This is a big problem for some taxpayers in the hardware business. So, kindly invoice all transactions,” he said.
URA’s message is that businesses should not pick and choose which transactions to record while leaving others outside the formal invoicing system.
EFRIS ALSO HELPS STOCK CONTROL
Yosia Kyesimba, Supervisor of Digital Tax Stamps, took the taxpayers through the new sectors required to use EFRIS, including the construction sector.
He also explained the benefits businesses can obtain from using the system, including improved stock control.
URA has increasingly positioned digital systems such as EFRIS as tools for improving tax administration, strengthening business records and plugging revenue leakages.
The Authority is also offering taxpayer education and training to help businesses understand the system and use it correctly.
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