Digital tax stamps are vital for Uganda's economic health, the World Bank says, urging the government to sustain digital reforms to close the fiscal gap.
Digital tax stamps are vital for Uganda's economic health, the World Bank says, urging the government to sustain digital reforms to close the fiscal gap.

Overview:

Uganda expands its EFRIS digital tax system to 12 new sectors, joining regional neighbors like Kenya and Rwanda in adopting tech-driven fiscal reporting.

Ugandan tax authorities have expanded the mandatory adoption of the country’s digital invoicing system to 12 additional economic sectors as part of ongoing efforts to improve tax compliance and widen the national tax base.

The Uganda Revenue Authority (URA) announced that businesses operating in manufacturing, mining, construction, transport, real estate, fuel wholesale and retail, and accommodation services must now use the Electronic Fiscal Receipting and Invoicing Solutions (EFRIS).

The mandate, which builds on existing obligations for Value Added Tax (VAT) registered taxpayers, also extends to water and electricity supply, information and communications technology, professional and technical services, and the arts and entertainment sector.

John Musinguzi, URA Commissioner General, said the introduction of EFRIS has reduced administrative inefficiencies and enhanced the integrity of tax records.

He acknowledged that when the system was initially introduced in January 2021, the revenue authority lacked the capacity to adequately educate the public, creating an information vacuum and subsequent resistance from traders. However, he noted that the URA has since embarked on nationwide sensitization campaigns and continuous engagement with business stakeholders.

Denis Kugonza, URA Commissioner for Domestic Taxes, said the expanded rollout aims to formalize more enterprises, strengthen compliance, and ensure fair competition across industries. By minimizing opportunities for tax evasion, the authority hopes to curb revenue leakages while distributing the tax burden more equitably.

Exemptions remain for certain micro-enterprises. Small businesses in the newly listed sectors with an annual turnover of less than 10 million Ugandan shillings (UGX), as well as individuals earning rental income below UGX 2.82 million annually, are not required to enroll in EFRIS unless they conduct business with EFRIS-compliant entities.

Digital tax administration models have grown rapidly across East Africa. Kenya utilizes the Electronic Tax Invoice Management System (eTIMS), Rwanda employs Electronic Billing Machines (EBMs), and Tanzania relies on Electronic Fiscal Devices (EFDs). Countries such as Brazil, France, and Belgium have similarly adopted digital invoicing to streamline tax collection and improve fiscal reporting standards.