The commissioner General, URA has acceded to Uganda Manufacturers Association (UMA’s) request for the effective date of implementation of the Kakasa EFRIS solution to be extended from 1st October 2020 to 1st January, 2021.
This decision was arrived at during an engagement with members of the Uganda Manufacturers Association yesterday afternoon at the URA offices.
The UMA members, led by the UMA chairman, 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 Uganda Revenue Authority.
“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.” Said UMA chairman, Barbara Mulwana.
In his response, Mr. Musinguzi said that Uganda Manufacturers Association is highly valued as a key partner in developing Uganda and commended UMA for its initiative to reach out to URA.
“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.” He added.
“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( bellow in photo).
The URA CG 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.
Some of the Issues raised by manufacturers:
- Integration of the URA System with the diverse member systems: This is proving complicated with a number of instances of requiring specialty support and software which has introduced costs and delayed deployment times.
- Volume of transaction: 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?
What is URA e-invoice and e-receipt system, EFRIS?
Uganda Revenue Authority (URA) announced starting the Financial Year 2020/2021, the introduction of an electronic platform called Electronic Fiscal Receipting and Invoicing System (EFRIS) to handle e-invoicing and e-receipts.
According to URA, it’s an initiative under the Domestic Revenue Mobilisation Strategy (2019/20-2023/24) and it will be used by all businesses to manage issuance of e-receipts and e-invoices as provided for under Section 73A of the Tax Procedures Code Act 2014.
Credit: eastafricanwatch.net
