URA has not stopped the EFRIS system.
- A technical committee has been formed comprising of UMA and URA teams to receive and resolve all technical issues with the EFRIS in real-time and on a weekly basis.
- The 60-day (1st Oct – 1st Dec 2020) extension communicated earlier as granted by URA is meant to enable the technical team to align the EFRIS so as to allow for seamless operations.
- Within the 60-day period, there will be no penalties to members who may have failed to use the EFRIS based on technical difficulties.
- By 1st December, all manufacturers shall be required to have integrated their current system with EFRIS since no further extension shall be given after this date.
Given the regulatory requirement to file quarterly returns among other considerations, the go live date has been set for 1st January 2021.
Based on the above therefore;
- We urge you to continue using the system so as to identify the technical challenges and report them to the technical team for resolution.
- We shall be sharing the communication line in due course through which you can channel all challenges to the technical team.
Manufacturers’ Trained On URA’s KAKASA Electronic Fiscal Receipting and Invoicing System
Uganda Manufacturers Association organized a webinar in which manufacturers were trained on the e-receipting and invoicing solution that was rolled out by Uganda Revenue Authority in July 2020. The two-day training was essential in the implementation of the E-Invoicing where compliance of all VAT registered companies is mandatory, effective 1st July, 2020 Watch EFRIS Live tutorial Here
Uganda Manufacturers Association organized a webinar in which manufacturers were trained on the e-receipting and invoicing solution that was rolled out by Uganda Revenue Authority in July 2020.
The two-day training was essential in the implementation of the E-Invoicing where compliance of all VAT registered companies is mandatory, effective 1st July, 2020
About the Kakasa system;
The Kakasa system is facilitated through a centralized Electronic Fiscal Receipting and Invoicing Solution (EFRIS) which ensures automated processing and exchange of invoicing and receipting information between suppliers, their customers and Uganda Revenue Authority (URA). The EFRIS will be operated by URA and used to monitor and manage the issuance of real time fiscal documents.
EFRIS entails the use of Electronic Devices that can be configured to issue E-invoices and Receipts. This is enabled by a software intermediary commonly known as Application Protocol Interface (API) specifying how the software components shall interact to allow the exchange of transactional information.
The tax payer shall opt to use any of the following EFRIS compatible components;
- System to System connection: Use your existing accounting system or acquire an EFD that is compatible with the URA EFRIS
- Web portal: For tax payers with or without the system to Issue fiscal documents.
- Client applications to be installed on a computer. (For taxpayers with or without system) and AskURA mobile application for taxpayers with mobile gadgets.
- Use USSD to send transaction details through for the different mobile network suppliers.
In the event that URA or the tax payer experiences system downtime, the taxpayer is expected to issue manual invoices or receipts in a predefined format, and upload the same into the EFRIS within 24 hours of service restoration.
Failure to comply with the above EFRIS requirements will attract monetary sanctions and subsequent prosecution for any taxpayer who will bypass the system.
Where goods and services are acquired from a VAT registered tax payer, expense deductions and input credits shall only be granted against E-invoices or E-receipts.
After the World Health Organization (WHO) declared Covid-19 a global pandemic, economies, world over, have witnessed devastating effects from the Covid-19 pandemic.
However, amidst all the gloom and despair, Uganda’s manufacturers stepped up to be part of the solution to the rapidly unfolding effects of Covid-19. From redeployment of production lines to the generous donations given to the Covid-19 task force, manufacturers have braved the pandemic irrespective of the disruptions in logistics, operations and strategic models of several businesses.
Surgical face masks, hand sanitisers and other personal protective equipment (PPEs) are an example of the manufacturers’ creativity to counter the greatest public health and economic threat of our time.
As a means to curb the spread of Covid-19, the World Health Organization recommended use of face masks and hand sanitizers. This recommendation ignited panic buying which resulted into an acute shortage of hand sanitizers.
In a bid to combat the shortage, Uganda Manufacturers Association lobbied government through the Minister of State for Investment to waive off Value Added Tax (VAT) and Excise Duty on certified manufacturers who had retooled their operations to the production of sanitizers. This move propelled the conversion of over 7.3 million liters of alcohol into sanitizers to bridge the shortage.
As the UMA, we applauded manufacturers for their resilience through life changing innovations that have made a difference and improved lives during these unprecedented times.
Currently we have over 37 companies manufacturing different medical supplies aimed at fighting the COVID-19.
Find the list of certified manufacturers of hand sanitizers
What is UMA Doing About Power Cuts Affecting Manufacturers
Uganda Manufacturers Association is aware of the growing electricity insecurity caused by power outages, surges, spikes, fluctuations, and we regret the toll it is having on your operations.
This is in spite of the fact that the country’s electricity supply currently exceeds demand. Uganda’s maximum demand is estimated at around 600 Megawatts against a total generation capacity of 1167 Megawatts. The issue root of the power problem is an old power distribution network that cannot efficiently and consistently deliver all the generated electricity.
UMA has partnered with an American organization known as Cities and Infrastructure for Growth (CIG) to try and understand the problem and challenge with the aim of providing evidence based value propositions and advisory to the Electricity Regulatory Authority and Government as a whole. This will go a long way in helping Government to identify opportunities and gaps in harnessing the potential of power as a key enabler of Uganda’s manufacturing competitiveness.
As a country, failure to utilize power that has been generated because of outages is such an important matter because it directly contributes to an increase in the electricity tariff. It annuls the fruits of our efforts of advocating for an affordable electricity tariff of US 5Cents.
The problem of outages is rather complex but UMA is committed to advocating for, not only an electricity tariff of US 5 Cents across all sectors but also a reliable electricity power supply that does not disrupt manufacturing operations. We are also preparing a schedule to engage the Electricity Regulatory Authority to keep them updated on the problem and need for solutions.