Overview:
Uganda's tax authority is expanding its digital invoicing system, EFRIS, to 12 new business sectors starting July 1, 2025, to boost compliance and revenue.
KAMPALA, Uganda — Uganda’s tax authority is expanding its digital invoicing system to 12 new economic sectors, requiring a wider range of businesses to issue real-time electronic receipts and invoices.
The Uganda Revenue Authority (URA) announced that effective July 1, 2025, companies in industries from manufacturing and construction to transportation and real estate must adopt its Electronic Fiscal Receipting and Invoicing Solution (EFRIS). The directive, issued by Commissioner General John R. Musinguzi, is meant to boost tax compliance and reduce revenue loss.
The newly included sectors also cover:
- Wholesale and retail of fuel
- Mining and quarrying
- Electricity, gas, and air conditioning supply
- Water supply and waste management
- Accommodation and food services
- Information, technology and communication
- Professional, scientific and technical activities
- Arts, entertainment and recreation
The URA warned that businesses that fail to comply will face a penal tax equal to double the amount of tax due on the goods or services involved.
First introduced in 2021, the EFRIS system aims to combat tax evasion by electronically capturing all business transactions and sharing the data directly with the URA. While the system has been credited with improving Value Added Tax (VAT) compliance and increasing revenue collection, it has faced criticism from some traders over implementation costs and complexity.
“This measure will enhance transparency, promote fair competition, and improve service delivery to compliant taxpayers,” Musinguzi said in a notice. The latest expansion is part of the URA’s effort to target key sectors that are significant contributors to the tax base but have historically been prone to under-reporting.