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Electronic Receipting and Invoicing in Uganda
By Todays Accountant -July 25, 20200289


By CPA Kalinda Gonzaga Joseph

Introduction

The Uganda Revenue Authority has introduced and directed the effective implementation of the use of E-invoices and E-Receipts in line with Section 73A of the Tax Procedures Code Act, effective 1st July 2020. This was affirmed by the Gazette Notice No. 595 of 2020, published on the 23rd June 2020 by the Uganda Revenue Authority. The Notice requires all VAT-registered taxpayers to issue e-invoices or e-receipts in accordance with the Tax Procedures Code (E-Invoicing and E-Receipting) Regulations, 2020. Thus the implementation of EFRIS (Kakasa E-Invoicing).

What is EFRIS?

EFRIS in full is the Electronic Fiscal Receipting and Invoicing Solution. 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.

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.

Electronic Fiscal Devices were first introduced in the 1980s in Japan and several countries in Europe. In recent years, there has been a massive implementation of the same in Sub Saharan Africa.

EFRIS in other East African Countries

Kenya was the first East African country to use Electronic Fiscal Devices (EFDs) and was mandated by Gazette notice No. 47 of 22nd October 2004, which was implemented from 2005.

In Tanzania, the system has been in use since 2010. It is currently in the second phase of implementation and is believed to have led to increased VAT compliance, although it still comes with challenges. It is in line with the VAT Regulations of 2015 as amended and also includes non VAT registered traders administered under the Tax Administration Act, 2015.

In Rwanda, Electronic Billing Machines were introduced in 2012 under Article 24 of the Law No. 37 of 2012 establishing the value-added tax, requiring all VAT-registered taxpayers to issue tax receipts and invoices for all transactions with their customers or clients. The system, however, was implemented from March 2014.

Why URA introduced electronic invoicing and receipting

URA has introduced e-receipting and invoicing to address the following challenges:

Suppression of sales.
Non-issuance of tax receipts/invoices.
False refund and offset claims.
Fictitious purchases with no physical movement of goods.
Matching of input tax and output tax hence paying the minimal Tax liability. (Gross profit liability is maintained between 0.1 to 1%)
Unverifiable claims by taxpayers due to loss of records.
Limited access to taxpayers’ records – Some taxpayers selectively provide records for tax administration purposes.
Non- remittance of VAT collected.
Invoice Trading – Unscrupulous Individuals (employees of Companies, accountants and tax agents) selling previously issued invoices of final customers to third parties to claim false input tax credit hence abusing the VAT mechanism.
Using multiple sets of business records.
A large informal sector.
The above challenges are hoped to be addressed as the system will provide evidence of daily sales transactions in a technically easy and undisputed way.

Who is required to use the EFRIS?

Section 73A of the Tax Procedures Code 2014, provides the legal framework for implementing EFRIS. The law provides for the commissioner to specify by a Notice in the Gazette, taxpayers for whom it shall be mandatory to use EFRIS under the various business models i.e. Business to Business (B2B), Business to Government (B2G) and Business to Consumer (B2C) in Uganda.

The components of the EFRIS

The EFRIS comprises of the following components;

E-Invoicing
Electronic Fiscal Devices (EFDs).
Electronic Dispenser Controllers (EDCs) to manage compliance of gas stations.
What options are availab

16/07/2020

Building and running a business is hard! And even more so during these unprecedented times. You have to adapt fast, lead through a crisis, adjust to disrupted markets and supply chains, and deal with the fear related to cash-flow or uncertainty, just to mention a few.

Having worked with thousands of entrepreneurs and businesses over the years, we have come to learn that successful entrepreneurs have a certain flow - a rhythm, a language. Some call it "grit" - the sheer will and determination to build something out of nothing and the ability to pull through despite the challenges along the way.

Generally we noticed, successful entrepreneurs have the ability to:

Be agile - Agility is the ability to respond to the market i.e doing what works and stopping/adapting what's not working. This concept of agility comes from the Japanese business philosophy of Kaizen meaning 'continuous improvement' or 'change for better'

Be resilient - Often agility and resilience are used interchangeably but they are- figuratively speaking - two sides of the same coin. While agility is the ability to respond quickly, resilience is having the mental capacity to recover from a challenge/adversity.

In the spirit of innovating and testing new things, this week will be broadcast at a special time - in the evening - as we host a "fireside chat" with two entrepreneurs who will share from over 20 years of their business experience on how they were able to build these two traits - agility and resilience.

So settle down at the end of a long day and join us as we explore how these individuals were able to build successful business empires, what they learnt from failed business ventures, and how they successfully raised investment.

Join us, this Thursday 16th July @ 8:00pm (EAT); 7:00PM (SAT); 6:00PM (WAT) for a special edition of .

Wishing you the best in the days ahead,

Naomi Kirungu
Entrepreneur Programmes Coordinator, AMI

Register for this Week's Bootcamp - Friday 17th July - Financial Forecasting and Cost Management
New Time: 2 p.m. East Africa / 1 p.m. South & Central Africa / 12 p.m. West Africa / 11 a.m. GMT

Find all of our resources on our website, in one place.

Previous Thrive emails: Week 1, Week 2, Week 3, Week 4,
Week 5, Week 6, Week 7, Week 8, Week 9, Week 10, Week 11, Week 12, Week 13, Week 14

Watch and share our new video "Together" which has been viewed over 40,000 times on YouTube (and the French version).

Funding News & Resources


NIGERIA
SMEs can access Access Bank loans from home
Cashflow Loans by Access provides an online platform accessible to Small and Medium Enterprises


SOUTH AFRICA
ProfitShare secures R100m from SA SME Fund
The funding will allow ProfitShare to partner with more small and medium businesses to provide much-needed capital to catalyze growth.



GHANA
COVID-19: Bank Of Africa Widens Payment Platforms To Assist SMEs
Bank Of Africa Widens Payment Platforms To Assist SMEs


LEARNING, TOOLS & RESOURCES

AMI's Fireside Chat

Pull up a comfortable chair and settle in for an evening conversation on a special edition of AfricaThriveLive this week on Thursday 16th July as we host our first "fireside chat" with guest entrepreneurs who have embodied resilience in their journeys:

James Mworia - Founder & Executive Director of Prudential Group
James started 13 businesses and 6 failed. To date, he's raised over $1million worth of investment.

Travis Gale - Author & Co-Founder of AppleTree Group
Travis spent a year cycling across 4 continents and raised R1.7Million for vulnerable children.

Naomi Kirungu, our Entrepreneur Programmes Coordinator AMI (Kenya) will host the conversation with entrepreneurs from across the continent.

Join us live from 8 pm (East Africa), 7 pm (South & Central Africa), 6 pm (West Africa), 5 pm (GMT)

Click below to reserve your spot for the live broadcast on:

LinkedIn
Facebook
YouTube


AMI Rise

Live Every Monday 8:30 am EAT// 7:30 a.m. South Africa & Central Africa Time // 6:30 a.m. West Africa // 5:30 a.m. GMT

Every Monday there's a live guided reflection on a new theme for the week.

This week's theme is 'Resilience - How to keep going when things are tough'. The skills to build resilience can be learned and they include:

Turning habits of negative thoughts into positive thoughts
Avoiding catastrophising, which is when we talk ourselves into believing the worst possible outcome is definitely going to occur, and
Looking for silver linings when setbacks do occur.

This Reflection is available on AMI's platform and other past pre-recorded guided Rise reflections as well.
Register for the Rise sessions
IN THE NEWS
Beyond lockdown – how do SMEs recover?
www.itweb.co.za | www.itweb.co.za | 2020-07-09
Strategies SMEs could consider when weathering the storm and preparing for the months ahead.

4G Capital brings micro health solutions to clients across Kenya - African Business Magazine
African Business Magazine | AB Marketing | 2020-03-30
Financial technology credit provider 4G Capital has partnered with insurance provider Turaco to offer an affordable health insurance package to its micro and small business clients in Kenya

IFC provides CIB Egypt $100m loan to support businesses disrupted by COVID-19
menafn.com | Date | 2020-07-05
The International Finance Corporation (IFC), a member of the World Bank Group, has provided a loan of up to $100m to the Commercial International Bank – Egypt (CIB).

Sudan: First 'Solar Lab' Launched in Khartoum
allAfrica.com | Radio Dabanga (Amsterdam) | 2020-07-08
UNDP 'Solar Lab' was launched in Khartoum on Monday to provide testing and certification services for solar energy technology. The lab's core function is to ensure the quality and longevity of imported solar systems and support Sudan's solar revolution.

Amid the lockdown charity really does begin at home
www.businesslive.co.za | Jonathan Cook | 2020-07-13
Paying domestic workers and gardeners who were told to stay at home is the least we can do to help them survive

How Rwanda’s coffee industry plans to recover from COVID-19 induced disruptions - CNBC Africa
CNBC Africa | CNBC Africa | 2020-07-13
Rwanda’s coffee prices have taken a hit on the international global market as the effects on the supply chains take their toll on agriculture exports, but could they rebound back soon?

Agricultural experts explore digital solutions to enhance the value chain
KBC | Kenya's Watching | Margaret Kalekye | 2020-07-13
Access to the market and an increase in agricultural productivity have been identified as the most viable areas where the adoption of digital agriculture solutions.

TDB and World Bank Group pen two deals to boost trade and infrastructure finance in Africa | Global Trade Review (GTR)
Global Trade Review (GTR) | Felix Thompson | 2020-07-09
Amid a gloomy economic outlook for Africa and warnings of liquidity strains caused by the coronavirus, the Eastern and Southern African Trade and Development Bank (TDB) has struck two deals with the World Bank Group to bolster infrastructure and trade finance in the region.

Business technology news and information portal for South Africa's tech professionals and decision makers.

11/06/2020

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04/06/2020

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