The Uganda Revenue Authority (URA) has widened the scope of businesses required to use the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), bringing 12 major sectors under mandatory electronic invoicing and receipting requirements.
In a public notice issued on August 10, 2026, URA reminded businesses that the requirement took effect on July 1, 2025, meaning affected taxpayers should already be issuing electronic invoices or receipts for their business transactions.
The latest expansion goes beyond the traditional requirement that applied primarily to VAT-registered taxpayers.
EFRIS is URA’s electronic system for recording business transactions and transmitting transaction information to the tax authority in real time. According to URA, the system is designed to improve transparency and accuracy in tax administration and facilitate the collection of the correct amount of tax.
12 sectors now covered
The additional businesses required to comply operate in:
- Manufacturing
- Mining and quarrying
- Water supply, sewerage, waste management and remediation
- Electricity, gas, steam and air-conditioning supply
- 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
- Wholesale and retail of fuel
The scope covers a broad cross-section of Uganda’s economy, from manufacturers and construction companies to landlords, professional service providers, hotels, restaurants, transport operators and fuel stations.
The expansion was gazetted through General Notice No. 2218 of 2025, which brought the additional sectors into the EFRIS framework effective July 1, 2025.
Small businesses get an exemption
However, URA has clarified that not every business operating in the listed sectors is automatically required to use EFRIS.
Businesses in the affected sectors with annual sales turnover below Shs10 million are excluded from the mandatory EFRIS requirement.
URA says such businesses can nevertheless voluntarily use EFRIS through available platforms, including the EFRIS application and portal.
A separate exemption applies to taxpayers earning rental income of less than Shs2.82 million annually, according to the latest public notice.
This means the new requirement is particularly significant for businesses that may previously have operated outside the VAT system but have now fallen within the designated sectors.
EFRIS becomes increasingly central to business transactions
Under EFRIS, transactions are electronically recorded and information is transmitted to URA in real time. The system generates electronic invoices and receipts containing fiscal document numbers, verification codes and QR codes that can be used to authenticate transactions.
URA says an e-invoice is issued by a VAT-registered taxpayer, while an e-receipt is issued through EFRIS by a taxpayer who is not registered for VAT.
The tax authority’s latest notice also carries a significant warning for businesses claiming expenses.
URA says no income tax deduction will be allowed for an expense that is not supported by an e-invoice or e-receipt where the supplier is required to use EFRIS, in accordance with Section 22(3)(m) of the Income Tax Act.
The measure effectively puts pressure not only on sellers to issue compliant electronic fiscal documents, but also on businesses buying goods and services to ensure that their suppliers provide the required documentation.
Businesses must provide taxpayer identification details
URA has further directed that e-invoices and e-receipts issued for business purposes should carry the buyer’s Business Registration Number (BRN), National Identification Number (NIN) or Taxpayer Identification Number (TIN).
This requirement strengthens the traceability of commercial transactions and gives URA more information with which to match purchases, sales and tax declarations.
EFRIS therefore represents more than a shift from paper invoices to digital documents. It gives URA a real-time window into transactions taking place across formal businesses.
What businesses need to do
URA says taxpayers requiring more information on registration, available platforms and usage guidelines should use the resources provided through its portal.
Businesses can register for EFRIS using their TIN and associated URA portal credentials. URA provides several implementation options, including the web-based system, desktop applications, electronic fiscal devices and system-to-system integration for businesses seeking to connect their accounting or business management systems directly with EFRIS.
The expansion is part of the government’s broader push to digitise tax administration, improve transaction visibility and widen the tax base.
For businesses in the 12 newly covered sectors, the message from URA is increasingly clear: electronic invoicing is no longer simply a VAT compliance issue—it has become an important part of doing business in Uganda.
