The Uganda Revenue Authority (URA) has expanded the reach of its Electronic Fiscal Receipting and Invoicing Solution (EFRIS) to more business sectors, bringing thousands of additional businesses under Uganda’s digital tax compliance framework.

EFRIS is a digital system used to authenticate and record business transactions through electronic invoices and receipts, allowing URA to monitor transactions and Value Added Tax (VAT) more effectively.

The latest expansion covers 12 additional business sectors, extending EFRIS requirements beyond the VAT-registered businesses that were initially targeted by the system. The expanded requirements took effect on July 1, 2025, with URA continuing to tighten enforcement.

More Businesses Required to Use EFRIS

The sectors brought under the expanded requirements include areas such as manufacturing, construction, transport, real estate, professional services, accommodation and food services, information and communication, mining and quarrying, and other economic activities.

Businesses covered by the requirements are expected to issue authenticated electronic invoices or receipts for transactions, giving URA greater visibility over economic activity and tax obligations.

The expansion is part of the tax authority’s broader efforts to improve compliance, reduce revenue leakages and formalise business transactions.

Impact on Business Expenses

The changes also affect businesses purchasing goods and services from suppliers covered by EFRIS.

Expenses that are not supported by the required electronic invoices or receipts may fail to qualify as deductions when businesses calculate their taxable income. This means companies will need to pay closer attention to the tax compliance status of their suppliers and ensure they obtain valid EFRIS documentation for business expenses.

Businesses Face Greater Compliance Pressure

URA’s expanded use of EFRIS is expected to increase the amount of real-time transaction data available to the tax authority, strengthening its ability to identify undeclared sales and inconsistencies in tax reporting.

While the digital system is intended to improve transparency and reduce tax evasion, some businesses, particularly smaller enterprises, have raised concerns about the cost and complexity of adapting to the system.

For businesses now covered by the requirements, compliance with EFRIS is increasingly becoming an important part of maintaining proper financial records and protecting their ability to claim allowable business expenses.

The continued expansion signals Uganda’s broader shift towards digital tax administration, with URA increasingly relying on technology to monitor economic activity and improve domestic revenue collection.