Manufacturers have asked Uganda Revenue Authority (URA) to delay the implementation of the Electronic Fiscal Receipting and Invoicing System.
The system, which is expected to be implemented effective January 1, 2021 seeks to streamline and manage the issuance of receipts and invoices for tax purposes.
It 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.
In a letter addressed to the Uganda Manufacturers Association (UMA) executive director, URA Commissioner General John Musinguzi, said they had been engaging association members in both groups and individuals and had by the time of writing the letter not received any issue related to the implementation of the system.
“We appreciate members of UMA who have utilised the extension onboard EFRIS [Electronic Fiscal Receipting and Invoicing System] and urge the rest to ensure they issue e-invoices and e-receipts effective January 1,” the letter reads in part, noting that for the tax period starting January 2021, changes to value added tax return will be made to authentic e-invoice or e-receipts details.
However, in a telephone interview yesterday, Mr Simon Kaheru, who has been representing UMA on the Electronic Fiscal Receipting and Invoicing System technical working group, said URA should consider extending the implementation date by at least three months.
Some manufacturers, he said, are not ready and need at least three-months because installing the system comes with an additional cost, which comes at a time when most manufacturers are struggling amid low sales and an increase in the cost of business.
“Operations are going to be affected. For instance large manufacturers will be required to do invoice entries manually, which is impossible if they don’t hire large teams,” Mr Kaheru said.
The Electronic Fiscal Receipting and Invoicing System is part of government’s agenda to stop tax leakages by managing and efficiently supervising activities of manufacturers without necessarily visiting their premises.
The system, according to URA, once implemented will support record keeping, real time authentication of business transactions as well as aid in confirming the accuracy of the self-assessments.
URA has had a challenge in determining the actual tax positions and timely processing of refunds for clients.
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.