Smart business solutions highly benefit taxpayers

OPINION

By Myra Miria Iris Ochwo
The Domestic Revenue Mobilisation Strategy (DRMS) 2019/20-2023/24 spells out several initiatives aimed at improving revenue collection which will ultimately secure our financial freedom as a nation.

Accordingly, in the budget speech for 20/21 financial year, The Minister of Finance Planning and Economic Development, Matia Kasaijja announced that Uganda Revenue Authority would be implementing the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).

It is applicable to every person carrying out business in Uganda under business to business, business to government and business to consumer. Subsequently in accordance with the Tax procedures code act 2014 section 73A (2), the Commissioner General gazetted all VAT registered taxpayers to issue e-invoices/e-receipts effective 1st July 2020.

EFRIS was born out of several issues that were affecting taxpayers for instance lengthy and complicated tax administration processes, poor book keeping practices, need to keep physical records for not less than five years, inconsistency in tax assessments and ledger balances, to mention but a few.

EFRIS has different options available for use which fall under two broad categories namely e-invoicing and Electronic Fiscal Device (EFD) - which is attached to a point of sale. The e-invoicing platform has four options that a taxpayer is at liberty to select from, that best suits his business needs.

Option one is the system to system integration for clients with existing sales systems. In this case, taxpayers shall continue to use the same internal system they have e.g. ERP system to issue e-receipts and e-invoices. The requirements for this integration are available on the URA portal under the e-invoicing menu.

The second available option is the e-Invoicing link on the URA web portal - where taxpayers use their e-tax account details i.e. TIN and password to log onto the EFRIS window to issue e-receipts and e-invoices.

The other options to be availed soon, but are still under development, are the Client Application (App) and Unstructured Supplementary Service Data (USSD).

The client app will be downloaded from the URA Portal under e-Invoicing menu and installed onto one's computer for the issuance of e-receipts and e-invoices while the USSD will be used by a taxpayer to send data using the various networks.

A taxpayer that uses EFRIS stands to accrue several benefits such as improve business efficiencies through simplified book keeping, tracking and authenticating business transactions in real time.

With digital storage of information there will be reduced carbon print from having to print and maintain hard copies of documents over long periods. The cost of compliance will greatly reduce with faster processing of refunds and quicker access to benefits like Withholding tax exemptions and Tax clearance Certificates.

As per URA standard operating procedures, an extensive change management campaign under the code name "Kakasa-you are in control "is under way to ensure the taxpayers are supported until they can use the solution.

Training is ongoing using various platforms that conform to the Ministry of Health guidelines pertaining to COVID-19. In addition, URA Management gave a window period running up to 30th September 2020 to allow for taxpayers to make the necessary adjustments. When this period elapses only fiscalized receipts/invoices will be accepted for tax purposes. Let us embrace EFRIS, you are in control.

The writer works as the Manager Planning and Human Capital Management in the Office of the Commissioner Domestic Taxes