URA tells traders to issue receipts for all business transactions - Daily Monitor

URA tells traders to issue receipts for all business transactions

Friday May 6 2016

URA commissioner Silajji Kanyesigye. FILE PHOTO

URA commissioner Silajji Kanyesigye. FILE PHOTO  

By ISMAIL MUSA LADU

Kampala.

Did you know that according to the law, any transaction involving payment of a minimum of Shs200 must be issued with a receipt and that a buyer has a right to demand for it?

Without a receipt, the goods in one’s possession could be regarded smuggled; leaving owners liable to legal consequences should the necessary law be applied. A receipt is a document issued by a seller to a buyer as evidence of a transaction.

According to Uganda Revenue Authority (URA), for businesses whose annual sales turnover is Shs10 million and above, receipts must be issued for any transaction made.
Mr William Kiganda, the URA acting commissioner for domestic taxes, said businesses that generate sales worth Shs10 million and above in 12 months have less than 90 days to put their houses in order.
After the three months’ grace period, any business found transacting without issuing genuine receipts will be dealt with according to the law.
“A person who fails to issue a receipt/tax invoice that meets minimum standards may face penalties or prosecution as provided for under the law,” Mr Kiganda said yesterday while launching the receipt issuance campaign dubbed, “bambi mpa lisiiti yange.”

He continued: “We encourage all persons moving with goods purchased to have a receipt or tax invoice to prove the transaction, otherwise the said goods may be regarded as smuggled or otherwise.”
According to Mr Kiganda, this campaign is aimed at tapping into the huge informal sector, majority of whom earn substantial amount of money but either hesitant or do not pay taxes.

The initiative is also intended to change the general taxpayer behaviour in regard to issuance and demand for receipts.
Targeted are businesses in general trade, wholesale and retail as well as rental and manufacturing in urban centres. After consolidating gains in the urban areas, this initiative will be rolled out countrywide.
Mr Silajji Kanyesigye, the URA commissioner compliance management, said: “In a short term we are looking at collecting between Shs20 and Shs30 billion. And in the long run we are looking at collecting a trillion Shillings in revenue.”

URA indicates that currently a number of businesses issue receipts or invoices which have no names or addresses of the issuer and where there are TINs, the business names and TINs are not linked.
According to Mr Kanyesigye, this means in case a client wants to complain or seek guidance on items bought, they cannot be assisted. And this promotes sale of fake or counterfeit goods that could be harmful to people’s health.

Expected features
The word “receipt” or “invoice” in a prominent place, name, address and TIN of the seller, name and address of the buyer, serial number, the quantity or volume of the goods or services supplied, price per unit and total value, date of issue, and a brief description of the items sold sufficient to identify the goods or services.

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