Uganda: 4 things to know about EFRIS launched by URA on KAKASA
The Uganda Revenue Authority (URA) implemented EFRIS on 1st January 2021. EFRIS is one of the solutions aimed at improving the ease of doing of business in Uganda.
EFRIS was launched under KAKASA a new digital platform. This will enable compliance and potentially increase Uganda’s attractiveness as an investment destination.
Let us now have look at 4 things to know about EFRIS and KAKASA.
1.What is EFRIS by KAKASA?
Kakasa is a set of government world-class certified smart business solutions introduced to ease doing of business in Uganda, enable compliance, ease business and made Uganda as an investment destination. Kakasa deal with 2 business solutions namely: Digital tax stamps and e- invoicing.
EFRIS stands for Electronic Fiscal Receipting and Invoicing System. EFRIS was launched by The Uganda Revenue Authority (URA) in 2020 to be implemented in the financial year 2020/2021. The deadline for implementation was July 1st 2020. Due to the challenges taxpayers encountered in integrating their systems with EFRIS the deadline for implementation was pushed to 1st January 2021.
EFRIS is an initiative under the Domestic Revenue Mobilization Strategy (2019/20-2023/24). EFRIS is to be used by all businesses to manage issuance of e-receipts and e-invoices. This is provided for under Section 73A(1) of the Tax Procedures Code Act 2014. (1) “A taxpayer may issue an e-invoice or e-receipt, or employ an electronic fiscal device which shall be linked to the centralized invoicing and Receipting system or a device authenticated by Uganda Revenue Authority. Furthermore, as per section 73A (2), “the commissioner shall, by notice in the gazette, specify taxpayers for whom it shall be mandatory to issue e-invoices or e-receipts or employ Electronic Fiscal Devices (EFDs) which shall be linked to the centralized invoicing and receipting system or devices authenticated by the Uganda Revenue Authority.”
2. How does EFRIS work?
Let’s have a look at the registration process for EFRIS. The Registration is done by the business owners on the URA website. After logging in, there is a verification process where you receive a Onetime password (OTP) through SMS or EMAIL. After that, more details required include the tax payers details (these details are auto filled from the e-tax), purpose of registration and upload of supporting documents e.g. business license. Following the completion of the registration process. Click on the URA logo to refresh the page to access features on your EFRIS account.
3. How to generate e-receipts and e -invoicing on EFRIS
We have familiarized ourselves with the EFRIS registration process. Let us now have a look at the process of generating e-receipt and e-invoices.
According to the Uganda Revenue Authority (URA), there are 3 ways for business to generate e-receipts an invoices:
- System to system – This can be done in 3 ways. First, by using the e-invoicing link on the URA portal. Second, by having the client application installed on your desktop or mobile phone. Third, by using USSD for non-smart mobile devices.
- Electronic Fiscal Device (EFD). The device has EFRIS pre-installed onto it and is attached to the business point of sales systems, mobile device or cash register. The Electronic Fiscal Device (EFD) works in both online and offline mode.
- Electronic Dispenser Controller (EDC) – help manage businesses in the fuel retail sector. For this process the device will have to be connected to the EFRIS server by the above mentioned methods. Afterwards the volume of fuel will be relayed from the underground fuel tank or the fuel pump directly to the Electronic Dispenser Controller and the URA EFRIS server.
It is important to note that the Tax Idenfication Number (TIN), quantity and value of items are captured when making a transaction. When the transactions is from business to business it is mandatory to request for the Tax Identification Number (TIN). However, if it is a business to consumer transaction the Tax Identification Number (TIN) is optional.
4. Advantages of EFRIS
Even though businesses have experienced challenges with EFRIS, there are advantages associated with the solution.
- Helps with improvement of book keeping skills. These skills will improve because the new system requires the business inventory to be updates always. With this the business has accurate details of money received and inventory records.
- Assistance with tracking and authentication of business transactions in real time. This will allow the business to get the total number and value of receipts raised periodically (daily, weekly, monthly, annually). Just like that the hustle of going to the URA offices is over, great news right?
- Helps with fast track processing of refund claims using e-receipts/ invoice. Since all the information needed for refunds is on the URA website, accessing and compiling all the data needed is easier and faster.
- Helps to eliminate the risk of losing physical tax invoices. In this digital era, no one wants to have lots of files stocked up with documents in the office. That’s why with EFRIS work is made easier, since everything is digitally stored, there’s no bulk storage and you reduce the risk of theft.
- Helps in obtaining prefilled tax returns. This is definitely great news, since the data is already in the system the process is simplified or the taxpayer.
Thanks to the impact of the World Bank Ease of Doing Business rankings on companies and investors, governments in Africa have been making strides in ensuring there is progress in the various fields used for the ratings. These include : starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
According to doing business 2020 by World Bank, Uganda was ranked 116th out of 190 economies. One of the key improvements noted was getting electricity. With the recently concluded elections in Uganda, We are hoping with the new business solution KAKASA will improve Uganda’s business environment. This will in turn help Uganda rise in the World Bank doing business rankings.
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