URA to penalise supermarkets which don’t issue e-invoices, e-receipts
Uganda Revenue Authority has vowed to penalise supermarkets that are not complying with issuing e-invoices and e-receipts - a system introduced to check tax compliance.
Uganda Revenue Authority (URA) has vowed to penalise supermarkets that are not complying with issuing e-invoices and e-receipts - a system introduced to check tax compliance.
According to a countrywide enforcement exercise launched today (November 1st), it was discovered that most supermarkets are not complying with this system.
The exercise which started at Capital shoppers supermarkets will spread countrywide for the next two weeks.
URA’s Acting Commissioner Public and Corporate Affairs, Ian Rumanyika said: “This countrywide exercise is to monitor non-issuance of e-receipts and e-invoices and inconsistent or incorrect supply of goods without digital stamps.”
According to Rumanyika, the exercise is targeting supermarkets both in Kampala and upcountry.
Sharing their experience at the close of the first day of the exercise, Rumanyika said: “Our observation is that most supermarkets are not issuing e-invoices and e-receipts. But they've been very cooperative with the enforcement and are willing to get onto the EFRIS system.
He added that, they are optimistic that at the end of the enforcement exercise many Supermarkets will be on-board but they have to pay penalties.
On November 1st 2019 and January 1st 2021, URA introduced the administrative solution of Digital Tax Solution/Stamps (DTS) and Electronic Fiscal Receipting and Invoicing Solution (EFRIS) respectively, all aimed at improving business efficiency.
As a requirement, all VAT registered taxpayers were required to issue e-invoices/e-receipts for all their business transactions through EFRIS in real time and all gazetted products were to bear a digital tax stamp. The gazetted products include bottled water, soda, beer, wines, spirits, cigarettes, sugar and cement.
Since the introduction of the solutions, URA has been sensitizing, onboarding and handholding various traders on how to use the solutions.
However, since the introduction of EFRIS and DTS, there has been continued supply of goods and services by VAT registered taxpayers without issuing e-invoices/e-receipts and a number of businesses are still in possession of unstamped gazetted products.
Supplying of goods and services without issuing an e-invoice/e-receipt or manufacturing, importing of gazetted products without a Digital Tax Stamp are offences punishable by law.
