The number of countries that attach importance to digitalization in public transactions is increasing day by day. The Ugandan government and Uganda Tax Administration (URA) started the transition to e-receipt and invoicing due to reasons such as non-bill/receipt issuance, spurious invoice and incorrect payments. The Ugandan government aims to pay the collected VAT while reducing the informal economy in the transition to e-invoice.
EFRIS System
The Ugandan government has also established the EFRIS system for the nationwide digitalization of receipts and invoices within the context of the 2014 Tax Procedure Law.
EFRIS consists of 3 components:
1) e-Invoicing
This option is available by logging into the client application in the URA web portal. Thus, you can issue and check the validity of electronic tax documents securely, easily and free of charge. In addition, you can also use the URA verification app or a QR reader installed on the smartphone to verify the Quick Receipt or billing information using the e-receipt/invoice number.
2) Electronic Financial Instruments (EFDs)
EFD is an electronic financial device system consisting of an interconnected Point of Sale system (POS) and a virtual Sales Data Controller (SDC) for generating e-receipts and e-invoices. It contains a secure element that transmits financial data to the EFRIS system.
In addition, the device allows easier searching of financial data in read-only mode, storing e-receipt and e-invoice information, and generating summary reports of daily, weekly, monthly and annual transactions of a business.
3) Electronic Dispenser Controllers (EDCs)
EDC is all Electronic Dispenser Controller. This is a special device designed to monitor Pump Gas (fuel). It has a compressor gun whose movement is monitored and fuel pump capacity is calculated. When Sold at the Pump, information is transmitted to connected EFDs to generate e-receipts in real-time.
URA offers some options for taxpayers to generate e-receipt and e-invoices. We have described these options below.
a) System-to-system connections for customers with existing sales systems
System-to-system connectivity is the integration of Enterprise Resource Planning (ERP), a taxpayer’s billing system, with EFRIS to generate e-receipts and invoices. When a sale is made, the transaction details will be captured in the vendor’s system billing system (ERP), encrypted and transmitted to the URA in real-time to generate e-receipt and e-invoice.
After EFRIS receives the transaction details, it will decrypt the data, formatting the data as an e-receipt or e-invoice.
b) URA web portal
It is also possible to generate e-invoices and receipts using the efris.ura.go.ug web portal from the link ura.ug.co. When you log in to the site, you can log in to the portal from the login screen. The TIN (Login ID) pre-issued by the URA and password are required. There are also many useful videos and documents on the site, as well as information about accredited suppliers.
c) Client application
Client Application is software that is installed on taxpayer’s devices such as smartphones, laptops and desktop computers for use to generate e-receipts and invoices.
d) Electronic Financial Instruments (EFDs)
e) USSD-Fast codes
All USSD is Unstructured Supplementary Service Data, sometimes referred to as “Express Codes” that supports a real-time connection between a mobile network operator and a user’s mobile phone. When this option is used, taxpayers will be given a code to generate e-receipts and invoices using their mobile phones.
The options to be used are determined by the taxpayer’s current invoicing and receipt method. However, taxpayers may prefer different methods outlined below.
Benefits of EFRIS to taxpayers
a) Return requests made with e-receipt or e-invoice are followed up quickly, provided that the information is available in the system.
b) This is a step in making sure future URA taxpayers with pre-filled tax returns benefit from minimizing the delays and costs associated with filing their tax returns.
c) Taxpayers will be in a position to monitor and verify business transactions in real time for efficient business management.
d) The solution eliminates the risk of physical loss of tax invoices as transaction data or copies are stored digitally in the system.
Rwanda, Tanzania, Kenya, Ethiopia and Zambia can be counted among the countries that use solutions similar to the EFRIS solution.
Melasoft SAP eReceipt and eInvoice Solution for Uganda
Melasoft SAP eReceipt and eInvoice Solution for Uganda works in a way that integrates the customer’s ERP system with the EFRIS system.