Implementation of E-Invoicing System Extended as Manufactures Engage URA

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URA Commissioner General, John Musinguzi

The Uganda Manufacturers Association (UMA) has welcomed the decision by the Uganda Revenue Authority (URA) to extend the implementation date of the E-invoicing/receipting system (EFRIS) after several engagements.

The decision to extend the implementation date from October 1st, 2020 to January 1st, 2020 that was arrived at during an engagement with members of the UMA and URA Commissioner General on Thursday afternoon.

UMA members led by the Chairperson, Barbara Mulwana initiated this engagement to address challenges faced by manufacturers while using the EFRIS and to request for an extension of time to enable full system integration for both the busines community and URA.

UMA officials after a meeting with URA officials

“The manufacturers are not ready and neither is Uganda Revenue Authority with regard to full implementation of the EFRIS. The integration on both parties has had a number of technical mishaps. We therefore request for an extension of time for system integration.” Mulwana said.

Mulwana highlighted that one of the challenge faced is the integration of the URA System with the diverse member systems explaining that this is proving complicated with a number of instances of requiring specialty support and software which has introduced costs and delayed deployment times.

She noted that a number of companies have large volume of transactions which makes the generation of e-invoices very cumbersome.

“Sales made by agents on behalf of the manufacturers: There are a number of manufacturers whose business involves use of agents and third-party distributors to solicit business. These do make sales through independent agents who earn a commission. How would this be done through the EFRIS? How would it ensure that the third parties are accounting for tax as expected?” Mulwana wondered.

Responding to the call, the URA Commissioner General, John Musinguzi appreciated UMA for taking the initiative to engage URA adding that they are valued partners in the development of the country.

UMA officials during a meeting with URA boss

“Your request for an extension has been given consideration and we believe it is justified. As such, we shall set up a technical working group between UMA and URA to review all challenges faced while using the EFRIS.” Musinguzi said.

He added that a two months extension (1st October to 1st December 2020) will be used to review the challenges faced and to track progress.

The Commissioner General also called for commitment from both UMA and URA teams towards the successful implementation of the kakasa Electronic Fiscal receipting and invoicing system.

However, for purposes of harmonizing with the accounting period, UMA members requested for 1st January 2021 as the ideal effective date for full implementation of the EFRIS instead of 1st December 2020.

“For purposes of harmonizing with the accounting period. The first quarter of the next financial year, as proposed by UMA, will be the appropriate time of implementation. However the technical team will use the first two months of the 2nd Quarter FY 2020/21 to clear any pending technical issues with the final month of the quarter (December 2020) being used to ensure readiness for the new year roll out.” Said Mr. John Musinguzi.

The URA boss further commended manufacturers who had already implemented the EFRIS system and urged them to use the extended grace period to use the system so that any challenges in its implementation could be ironed out.