KAMPALA —Uganda Revenue Authority (URA) has on Monday November 1, 2021 launched a countrywide exercise to monitor non-issuance of e-receipts and e-invoices and inconsistent or incorrect supply of goods without digital stamps.
The exercise, launched at Capital Shoppers Supermarket in Ntinda, is targeting supermarkets both in Kampala and upcountry.
The administrative system of Digital Tax Solution/Stamps (DTS) and Electronic Fiscal Receipting and Invoicing Solution (EFRIS) introduced by URA on November 1st 2019 and January 1st 2021 seeks to streamline and manage the issuance of receipts and invoices for tax purposes.
They system is supported under the Tax Procedures Code Act 2014, which demands that once a transaction is initiated using any of the solution components, details are transmitted to URA in real time.
Mr. Paddy Ochieng, the Manager Domestic Tax Kampala Metropolitan says the system is aimed at improving business efficiency.
Who is eligible to use the the system
As a requirement, all Value Added Tax —VAT registered taxpayers were required to issue e-invoices/e-receipts for all their business transactions through EFRIS in real time and all gazetted products were to bear a digital tax stamp.
As of today, the gazetted products include bottled water, soda, beer, wines, spirits, cigarettes, sugar and cement.
Since the introduction of the solutions, URA has through media campaigns been sensitizing, onboarding and handholding various traders on how to use the solutions.
According to URA, the system is designed to improve business efficiencies and reduce the cost of compliance through, improved record keeping, ability to track and authenticate transactions in real time and fast-tracking payment of refund claims using e-receipts or e-invoices given that the information shall be available in the system.
URA acting public affairs Commissioner, Ian Rumanyika says there has been continued supply of goods and services by VAT registered taxpayers without issuing e-invoices/e-receipts and a number of businesses are still in possession of unstamped gazetted products.
“Supplying of goods and services without issuing an e-invoice/e-receipt or manufacturing, importing of gazetted products without a Digital Tax Stamp are offences punishable by law,” he said—advising the general to purchase gazetted items that are affixed with digital tax stamps and also demand their e-receipts or e-invoices to avoid any inconveniences.