URA partners with IST and Urgent Action Fund-Africa to demystify EFRIS for traders.
The Uganda Revenue Authority (URA) has teamed up with the Institute for Social Transformation (IST) and Urgent Action Fund-Africa to launch an initiative aimed at simplifying the Electronic Fiscal Receipting and Invoicing Solutions (EFRIS) system.
This collaboration seeks to dispel confusion among traders regarding the system and taxation, ensuring a smoother transition for businesses in various districts across Uganda.
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Over the past few weeks, the initiative has reached women traders in over 12 markets across six districts, including Kampala, Gulu, Iganga, Arua, Pader, and Busia.
The outreach aims to educate traders on how EFRIS operates and its role in facilitating compliance with Uganda’s tax regulations.
Moureen Wagubi, Executive Director of IST, highlighted that the partnership with Urgent Action Fund-Africa is crucial in improving traders' understanding of EFRIS.
"We are addressing significant confusion among traders who lack information about EFRIS and its implementation," Wagubi said.
She emphasized that EFRIS is not an additional tax but a tool designed to make tax compliance easier, ensuring transparency in transactions.
During the educational sessions, URA’s team lead, Mercy Okori, provided insights into traders’ rights and responsibilities under the tax system.
She assured traders that they have the right to be treated fairly, maintain confidentiality in their dealings with URA, and object to any unjust assessments. At the same time, she reminded traders of their obligations, including accurate record-keeping and avoiding tax evasion.
Sandra Grace Kakooza, a tax education expert, delved into the specifics of Value Added Tax (VAT) and its application. “Standard-rated supplies are taxed at 18%, while zero-rated supplies, such as exports and specific medications, file nil returns.
Exempt supplies, including unprocessed agricultural products and some educational services, do not attract VAT,” Kakooza explained. She further outlined the requirements for VAT-registered businesses, which include issuing e-invoices, timely VAT return submissions, and keeping accurate records.
Kakooza also encouraged traders to register for VAT, noting that it offers multiple benefits. "VAT registration opens doors to larger business opportunities, allows businesses to claim VAT on purchases, and eliminates penalties for non-compliance," she said.
This initiative underscores URA’s commitment to enhancing tax literacy among Ugandan traders. By ensuring that traders fully understand and comply with the EFRIS system, URA aims to support the growth of businesses and contribute to Uganda’s broader economic development.
