The Uganda Revenue Authority (URA) has reported collecting Shs6.8 billion in just one week of enforcing compliance with digital tax measures, including Digital Tracking Solutions (Stamps) and Electronic Fiscal Receipting and Invoicing Solution (EFRIS). The enforcement efforts were primarily concentrated in the Kampala Central Business District, with the majority of the revenue coming from penalties imposed on non-compliant taxpayers.
Sandra Kaitare, the URA Assistant Commissioner of the Petroleum and Mining Division overseeing the operations, stated that the enforcement aims to ensure that all value-added tax (VAT) rated taxpayers issue proper invoices and that all goods designated to carry digital stamps are stamped and activated.
Digital tax stamps, implemented in partnership with SICPA, have been in place since 2019 and serve as a crucial element in enhancing digital tax tracking solutions for improved revenue collection. URA has conducted various tax sensitization campaigns about EFRIS and digital tax stamps, emphasizing the significant fines associated with non-compliance.
The law prescribes a fine of Shs6 million for VAT payers not adhering to EFRIS guidelines, while manufacturers and retailers failing to comply with digital tax stamps guidelines face fines of Shs50 million, along with the seizure of unstamped goods.
Kaitare highlighted that URA’s objective is to enhance taxpayer compliance, emphasizing the success of the project in finding fewer non-compliant taxpayers to penalize. URA has deployed personnel at checkpoints across the country, including Karuma, Pakwach, Jinja, and Mbarara bridges, to monitor compliance. The enforcement, which began last week, is expected to continue for at least six months.
