Electronic invoicing and e-Reporting in Uganda

Mandatory Use

Since January 1st, 2021, electronic invoicing is mandatory for all transactions: B2B (Business to Business), B2C (Business to Consumer), and B2G (Business to Government). 

The EFRIS (Electronic Fiscal Receipting and Invoicing System), managed by the Uganda Revenue Authority (URA), centralizes the issuance, validation, and storage of electronic invoices. Any business that does not use this system to register its invoices may face sanctions or penalties from the tax authority.  

Invoice Format

Electronic invoices in Uganda must be issued in JSON (JavaScript Object Notation) format, a widely used standard for transmitting structured data. 

The use of JSON in electronic invoicing allows for fast and efficient communication between company systems and the EFRIS platform, ensuring that data is interpreted correctly by the URA. 

Additionally, JSON facilitates integration with various accounting and enterprise resource planning (ERP) systems, reducing errors in data processing and optimizing the tax management of companies.

Electronic Signature

To ensure the authenticity and integrity of electronic invoices, Uganda has established the mandatory use of an electronic signature on each issued document. 

The electronic signature certifies that the invoice has been generated by an authorized issuer and that its content has not been altered after issuance. This security mechanism helps prevent tax fraud and reinforces transparency in business transactions. 

Companies must ensure they use an electronic signature recognized by the URA, integrating its use within the EFRIS system. 

Archiving

Businesses must ensure the preservation of their electronic invoices in accordance with regulations set by the Uganda Revenue Authority (URA).

Ugandan law requires that electronic invoices be stored on secure servers, with restricted access and appropriate backup systems to prevent information loss. 

Prerequisites

In order to issue electronic invoices in Uganda, companies must register in the EFRIS system, overseen by the URA and comply with the technical and software requirements established by the tax authority. 

Fiscal Control

For an invoice to be valid in Uganda, it must have a Fiscal Document Number or FDN, a unique number certifying its registration in the URA’s fiscal system. 

Without a valid FDN number, an invoice has no tax effects and could be rejected by both clients and the tax administration. 

Printing Format

Although electronic invoicing in Uganda is managed digitally through the EFRIS system, companies can print their invoices when necessary. 

For a printed invoice to be valid, it must contain a QR code generated by the URA. This code allows clients and tax authorities to verify the authenticity of the document by scanning it with a mobile device or specialized reader.