The Uganda Revenue Authority (URA) is expanding the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) to 12 additional economic sectors in the 2026/27 financial year as the tax body steps up efforts to strengthen tax compliance, reduce revenue leakages and increase domestic revenue mobilisation. The expansion will cover businesses in sectors including energy and utilities; extractives such as construction, mining and quarrying; manufacturing; real estate; transport and storage; hospitality and food services; information and communications technology (ICT); professional services; arts, recreation and entertainment; and wholesale and retail fuel trade, among others.
However, not all businesses will be required to use EFRIS. Providers of passenger land transport are excluded from the EFRIS requirement for this phase of rollout. This category includes boda boda operators and taxi operators, regardless of turnover. Also, micro and small enterprises operating in the gazetted sectors with annual turnover of less than UGX 10 million are exempt. This includes informal retail traders, small-scale manufacturers, artisans, and personal service providers such as salons and tailors.
Landlords earning less than UGX 2.82 million in rental income per year and non-resident digital service providers are also exempt. Eligible businesses may, however, opt to register and use EFRIS voluntarily.
Businesses in the affected sectors will generally be required to issue electronic invoices or receipts for taxable transactions, regardless of their VAT registration status or the value of the transaction, subject to exemptions provided by URA.
URA has been sensitising the business community about EFRIS and its benefits, including improved record-keeping, easier transaction verification, better stock management and simplified tax compliance.
The expansion is part of Uganda’s efforts to strengthen domestic revenue mobilisation and improve tax compliance as the country works towards a US$500 billion economy.
URA says EFRIS will help formalise businesses, improve transparency and reduce revenue leakages.
Although initially introduced mainly for VAT-registered taxpayers, EFRIS has become a tool for monitoring wider tax compliance.
URA Commissioner for Domestic Taxes Dennis Kugonza said digital technology was improving tax administration, with EFRIS helping the authority capture transaction information and reduce revenue leakages.
“The system enables URA to track goods and stock movement in real time while making it easier to verify invoices, receipts and taxpayer declarations,” Kugonza said.
URA says information from EFRIS helps verify declarations under Income Tax and Withholding Tax. Revenue collections reached Shs8.780 trillion in the 2024/25 financial year, up from Shs7.800 trillion in 2023/24.
URA has warned businesses that expenses without required electronic invoices or receipts will not qualify for income tax deductions where EFRIS use is mandatory.
The authority also requires e-invoices to include the buyer’s Business Registration Number (BRN), National Identification Number (NIN) or Taxpayer Identification Number (TIN).
URA says EFRIS has improved record-keeping, simplified transaction verification and helped businesses track stock movement.
Taxpayers registered on EFRIS also benefit from exemption from the 6 per cent Withholding Value Added Tax (WVAT) when they issue electronic receipts and invoices through the system.
URA says the exemption helps businesses retain more working capital.
URA Commissioner General John Rujoki Musinguzi has linked digital invoicing to stronger tax administration and domestic revenue mobilisation.
URA says EFRIS gives the authority better visibility of commercial transactions, improving tax assessments and reducing opportunities for tax evasion.
URA Public and Corporate Affairs Assistant Commissioner Robert Kalumba said EFRIS helps businesses keep proper records and makes tax compliance easier.
“EFRIS technology is good for business and revenue administration,” Kalumba said.
