For close to two days traders downtown have shut their workstations as the new system Electronic Fiscal Receipting and Invoicing Solution has raised eyebrows.
What exactly is EFRIS?
The lay man may pose a question, what is EFRIS all about? Is it another form of tax? Making him feel over taxes, probably explaining trading stores locked up.
The Uganda Revenue Authority which is the Tax body in Uganda stated that “EFRIS entails the use of Electronic Fiscal Devices (EFDs), e-Invoicing, or direct communication with business transaction systems to manage the issuance of e-receipts and e-invoices in accordance with the Tax Procedures Code Act 2014″ https://ura.go.ug/en/efris/”Once a transaction is initiated using any of the solution’s components, transaction details are transmitted to URA in real time to generate e-receipts and e-invoices”.
Let’s break it down in simple terms, EFRIS comes with a lot of advantages given that it’ll fast track every transaction meaning incase of a refund, you will not go through the previous hustle and bustle of not knowing how to prove your claim that’s if you have any.The best part of it all is that we as taxpayers will track our transactions in real time which will elevate proper book keeping.
Let’s get to the buffet of the party, Is EFRIS compulsory or mandatory you may ask and if yes, then who has to follow this new directive?Well, according to Uganda Revenue Authority it is mandatory for all Value Added Tax (VAT) registered tax payers to enroll on the system.
According to the European Unionhttps://taxation-customs.ec.europa.eu/what-vat_en#:~:text=The%20Value%20Added%20Tax%2C%20or,consumption%20in%20the%20European%20Union. The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption.
In conclusion, URA advices those outside VAT category to implement EFRIS and take advantage of the various benefits. Anyway, omuntu wa wansi feels overly detected with this new tax system. And we hope clarity is made so that businesses ran away usual downtown.
