URA Expands EFRIS Compliance to 12 New Sectors in Sweeping Tax Digitisation Move

The Uganda Revenue Authority (URA) has expanded the scope of its Electronic Fiscal Receipting and Invoicing System (EFRIS) to cover twelve additional sectors, marking one of the most significant tax compliance reforms since the system’s launch in 2021.

According to URA General Notice No. 2218 of 2025, effective 1 July 2025, the following industries must now issue e-invoices or e-receipts, regardless of VAT registration status:`

Wholesale and Retail of Fuel

Mining and Quarrying

Manufacturing

Electricity, Gas, Steam, and Air Conditioning Supply

Water Supply, Sewerage, Waste Management, and Remediation Activities

Construction

Transportation and Storage

Accommodation and Food Service Activities

Information, Technology, and Communication

Real Estate Activities

Professional, Scientific, and Technical Activities

Arts, Entertainment, and Recreation
.

A shift towards universal transaction transparency

EFRIS, launched in January 2021, was initially limited to VAT-registered taxpayers with an annual turnover above UGX 150 million.

The system allows real-time transaction tracking and centralised invoice and receipt management.

The expansion marks “a notable change in Uganda’s tax administration, focused on increasing transparency, boosting compliance, and widening the tax base,”according to a PwC Tax Advisory Alert authored by Pamela Natamba (Partner), Juliet Najjinda (Associate Director), Nicholas Kabonge (Manager), and Avin Kizza (Senior Associate).

Tax and enforcement implications

The reform alters how businesses substantiate tax deductions. Prior to July 2025, purchases from non-VAT registered suppliers did not require e-receipts for expense claims. Now, both VAT-registered and non-VAT suppliers in the affected sectors must provide compliant e-invoices or e-receipts.

The PwC team notes that “URA will now be capturing real-time transaction data enabling them to accurately assess turnover. This will also help identify businesses that cross the UGX 150 million VAT threshold, triggering compulsory VAT registration.”

The URA’s expanded visibility is expected to significantly reduce manual assessments and presumptive regime under-reporting.

Compliance challenges ahead

EFRIS integration can be done through URA’s web portal, direct accounting system linkage, or via Electronic Fiscal Devices (EFDs) purchased from approved suppliers.

However, the four PwC advisors caution that “the expenses associated with implementation—such as purchasing EFDs, acquiring mobile data, training personnel, and integrating systems—may pose significant challenges, particularly for startups and businesses operating on thin margins.”

Harsher penalties for non-compliance

The URA has replaced the previous UGX 6 million fixed penalty with a proportional fine: double the tax due for failing to issue e-invoices or e-receipts for VAT-registered businesses.

For non-VAT registered businesses, non-compliance could result in a fine of up to UGX 30 million or imprisonment for up to 10 years, upon court conviction.

The PwC Tax Advisory Alert emphasises that “the penalties are now designed to scale with the severity of non-compliance, sending a clear message about the seriousness of EFRIS obligations.”

Next Steps for Businesses

The four PwC authors advise affected businesses to act swiftly:

Adopt compliant invoicing systems before transactions are disallowed as deductible expenses.

Train finance teams on EFRIS procedures.

Review supplier compliance to avoid rejected tax claims.

They conclude: “Businesses in the newly impacted sectors should focus on prompt implementation of EFRIS to prevent penalties and maintain their eligibility for tax deductions.”