URA expands digital tax system, EFRIS, to 12 new industries

KAMPALA, Uganda  — The Uganda Revenue Authority (URA) is expanding the scope of its Electronic Fiscal Receipting and Invoicing Solution (EFRIS) to 12 additional sectors, a move that will require a wider range of businesses to issue authenticated electronic receipts and invoices.

The directive, which takes effect on July 1, 2025, was issued by Commissioner General John R. Musinguzi. It is part of a broader effort to close tax loopholes and improve compliance across the country.

The newly included sectors are:

• Wholesale and retail of fuel
• Mining and quarrying
• Manufacturing
• Electricity, gas, steam and air conditioning supply
• Water supply, sewerage, waste management and remediation
• Construction
• Transportation and storage
• Accommodation and food service activities
• Information, technology and communication
• Real estate
• Professional, scientific and technical activities
• Arts, entertainment and recreation

The URA warned that any business failing to comply will be subject to a penal tax equal to twice the amount of tax due on the transaction.

EFRIS was first implemented in 2021 to electronically capture all business transactions and transmit the data in real-time to the URA. While the tax body credits the system with improving VAT compliance and boosting revenue collection, it has faced opposition from some traders over implementation costs and complexity.

In a public notice, Musinguzi stated that the measure will “enhance transparency, promote fair competition, and improve service delivery to compliant taxpayers,” as the URA seeks to improve reporting in key economic sectors that have historically been prone to under-declaration.