EFRIS & Small Business Compliance
What is the step-by-step process for a newly established small business to register for the EFRIS system?
Dear Reader,
To register a business for EFRIS, follow the steps below:
- Access the EFRIS portal through ura.go.ug
- Log into your account using your TIN and password;
- The system will prompt an OTP which will be sent to your email or registered phone number, input the OTP in the field available and login;
- Once you have logged in, check for registration and click on first time registration;
- Select E-invoicing option and select the current date as the effective date of registration and invoicing;
- Submit the application and it will be auto approved by the system.
Is EFRIS mandatory for all businesses, or only those registered for VAT?
Dear Reader,
The first phase of EFRIS roll out mandated all VAT registered taxpayers to use EFRIS effective 01st January 2021.
In the second phase of roll out, non-VAT registered taxpayers in 12 gazetted sectors were added to the list of taxpayers mandated to use EFRIS effective 01st July 2025. The sectors are:
- Wholesale and Retail of Fuel.
- Mining and Quarrying.
- Electricity, gas, steam and air conditioning supply.
- Water supply; sewerage, waste management and remediation activities.
- Transportation and storage.
- Accommodation and food service activities.
- Information, Technology and communication.
- Real estate activities
- Professional, scientific and technical activities
- Arts, entertainment and recreation.
How should small businesses with very low daily sales (e.g. below UGX 50,000) approach EFRIS compliance without incurring excessive costs?
Dear Reader,
Taxpayers with an annual sales turnover below UGX 10 million are excluded from the mandatory use of EFRIS.
However, a taxpayer in the above category can voluntarily use EFRIS through our available channels such as the EFRIS App and the EFRIS portal efris.ura.go.ug which can be accessed using a smartphone or computer at no cost.
Are there simplified or subsidized EFRIS solutions tailored for micro and small enterprises.
Dear Reader,
EFRIS can be accessed through the following simplified platforms at no cost:
- EFRIS portal via efris.ura.go.ug;
- The EFRIS desktop app;
- The EFRIS mobile App downloaded from Google play or App Store.
Withholding Tax (6%) Challenges
How can URA ensure that the burden of withholding tax does not unfairly fall on suppliers who are already operating on thin margins?
Dear Reader,
Withholding tax is a tax collection mechanism intended to ensure tax compliance. The amount withheld from a supplier is an advance payment of tax treated as a credit and can be offset from the tax assessed on the supplier at the end of the financial year.
A supplier is entitled to claim a refund where the amounts withheld from them exceeds the actual tax due in the financial year.
In sectors like construction where credit transactions are common, are there flexible compliance arrangements to address withholding tax challenges?
Dear Reader,
The obligation to withhold arises at the time payment is actually made. Accordingly, when a transaction is on credit, the withholding agent will not be required to remit any withholding tax until the payment is made.
VAT Application & Policy Clarity
Following the court ruling in Amatheon Agri Uganda Ltd vs URA, under what conditions is maize flour truly zero-rated for VAT purposes?
Dear Reader,
For a supply of maize flour to qualify as a zero-rated supply for VAT purposes, the maize should have been both grown and milled in Uganda at the time the supply is made.
However, where the maize is supplied before milling, it is treated as a supply of unprocessed agricultural products and is therefore exempt from VAT.
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