The Ugandan tax authority (URA) has developed the EFRIS electronic invoicing system for VAT declaration in commercial transactions.
Since January 1, 2021, Ugandan businesses are required to use EFRIS (the Electronic Fiscal Receipting and Invoicing System) to report electronic invoices and sales receipts to the URA.
According to the tax authority, EFRIS is an electronic invoicing and e-receipt solution. It involves the use of Electronic Fiscal Devices (EFD), or electronic invoicing – direct communication with commercial transaction systems – for receipt and invoice delivery in line with the Code of Tax Procedures Act of 2014.
Once a transaction is initiated using either of the above options, the details are transmitted to the URA in real time to generate electronic receipts and electronic invoices.
EFRIS eliminates the risk of losing paper documents. Transactional data or copies are digitally stored in the system.
EFRIS came into force in Uganda on July 1, 2020, but its rollout was prolonged due to difficulties taxpayers had in integrating their systems with EFRIS. Now, in 2021, its use is mandatory and taxpayers who do not adapt to the system will be penalized.
How to Implement EFRIS Electronic Invoicing
Companies that are required to file VAT must first register in the EFRIS invoicing system through the tax authority's website. The first time the taxpayer enters the system, they must indicate whether they will use electronic invoicing or EFD. Once registered and verified as a user of the system, and their account enabled, they can access the EFRIS functions.
Flow of Electronic Invoicing Emission in Uganda
The system requires use of an API that connects the taxpayer with EFRIS. The taxpayer automatically generates the structured invoice in XML format out of information taken from their ERP. The encrypted data is sent to the URA. Upon receipt of the transaction details, EFRIS decrypts and formats the data. The electronic receipt or e-invoice includes key data such as the Fiscal Document Number (FDN), a verification code, and a Quick Response (QR) code.
EFRIS encrypts the fiscal data and transmits it to the taxpayer’s system. Users can then print the electronic receipt or electronic invoice.
The implementation of the EFRIS system is aimed at tackling tax evasion and the fraudulent practice of fabricating invoices.
EDICOM – Prepared for New Electronic Invoicing Scenarios
EDICOM is a technology partner specialized in electronic data interchange (EDI) and e-invoicing solutions that operates in more than 70 countries and adapts its solutions to local legislation. Our expertise in e-invoicing compliance solutions allows EDICOM to rapidly expand services into new countries.
EDICOM's international e-invoicing platform (for invoice delivery and reception) is adapted to the specifications of the countries of origin and destination in which its users operate. It is constantly updated to align with local laws.
This solution is best suited for customers with a high volume of electronic invoices. It is fully automated, unlike manual options that involve dumping data into the system.