e-Invoicing in Uganda: Timeline, Guidelines, Process, and Steps for Implementation

Uganda officially began its shift to digital tax administration on 1 January 2021 through the e-invoicing implementation led by the Uganda Revenue Authority (URA). The Electronic Fiscal Receipting and Invoicing Solution (EFRIS) was launched to improve VAT compliance, reduce tax fraud, and enhance revenue collection. As of April 2025, e-invoicing in Uganda is mandatory for all VAT-registered businesses, with ongoing efforts to expand coverage to non-VAT taxpayers. 

Under this system, businesses must issue e-invoices in a structured format using approved tools and transmit them in real time to the URA for validation. Once verified, each e-invoice receives a unique fiscal document number and QR code. This blog explains what e-invoicing is, the URA’s timeline, key requirements, e-invoice guidelines, and the registration process. This guide offers all the essential steps for smooth and timely e-invoicing implementation in Uganda.

What is e-Invoicing in Uganda?

E-invoicing in Uganda is a digital invoicing system introduced by the Uganda Revenue Authority (URA) under the Electronic Fiscal Receipting and Invoicing Solution (EFRIS). Uganda e-invoicing requires all VAT-registered businesses to issue e-invoices in Uganda electronically in a standardised JSON format and transmit them in real time to the URA for validation. Once validated, the invoice receives a unique Fiscal Document Number (FDN) and a QR code, making it legally recognised. This system ensures transparency, reduces tax evasion, and improves overall compliance with Uganda’s tax regulations.

e-Invoice Implementation Timeline

Starting from January 1, 2021, all Ugandan businesses, including government institutions, are obligated to use the Electronic Fiscal Receipting and Invoicing System (EFRIS) for issuing e-invoices. This system ensures that every invoice or POS receipt is electronically reported to the Uganda Revenue Authority (URA) in real time. 

e-Invoicing Process in Uganda

To promote transparency and curb tax evasion, Uganda e-invoicing mandates electronic invoicing through the URA’s EFRIS system. Here’s how businesses can issue and manage compliant e-invoices step by step.

• EFRIS Account Activation: All VAT-registered businesses must log in to EFRIS using their TIN and password. An OTP (one-time password) is sent to the registered mobile number or email for system access. 
• ERP or Device Integration: Integrate your ERP, EFD, or POS system with EFRIS for seamless data exchange. Micro and small businesses can utilise the URA’s online portal, mobile application, or USSD service for e-invoicing..
• Inventory Setup: Configure products or services using the standard URA product list. Stock must be updated for goods before invoicing can begin.
• Transaction Recording: Record each sale in your ERP or connected device. Data is auto-sent to URA in real time for processing.
• e-Invoice Generation: EFRIS decrypts and verifies transaction data, then issues an e-invoice with a QR code, invoice number, and fiscal document ID.
• Invoice Delivery: Invoices can be printed or shared via email, app, or ERP system. Customers can verify authenticity via the URA portal.
• Receiving Invoices: Buyers receive valid electronic invoices in digital or printed form, which can be verified through the URA system for authenticity.
• Document Management: Users can raise, cancel, or amend invoices and issue debit or credit notes through the EFRIS platform.
• Invoice Format: All e-invoices must follow the JSON structure defined by URA guidelines.
• Available Channels for Issuance: Options include web portal, ERP integration, client app, USSD codes, or approved EFDS for creating and submitting invoices.

e-Invoicing Compliance Guidelines

To remain compliant with national regulations, Ugandan companies must follow specific e-invoicing rules.

• Format: All electronic invoices must be issued in JSON format, as specified by URA.
• Digital Signature: Each e-invoice must include a digital signature to verify its legitimacy and protect it from alteration. 
• Print Format: Printed or PDF copies of invoices must display a QR code for verification by the customer or tax authorities.
• Required Administrative Transactions: Only registered taxpayers on the EFRIS platform are authorised to issue valid electronic invoices.
• Fiscal Control: A valid e-invoice in Uganda must include a unique Fiscal Document Number (FDN). If the FDN is missing or incorrect, it may result in serious non-compliance consequences, such as penalties, hefty fines, or even imprisonment.

Who Needs to Comply with e-Invoicing in Uganda?

All VAT-registered businesses in Uganda, including those in the public sector, must comply with e-invoicing regulations. This applies to entities engaged in B2B, B2C, and B2G transactions as mandated by the Uganda Revenue Authority (URA).

Penalty for Non-Compliance 

VAT-registered businesses in B2B, B2C, and B2G must comply with EFRIS. Otherwise, they’ll face severe penalties below:  

• Not implementing EFRIS: Penalty equals the tax owed or 400 currency points, whichever is greater.
• Not issuing an e-invoice/e-receipt or tampering with an EFD: Penalty equals the tax owed or 300 currency points, whichever is higher.
• Using uncertified EFDS: Up to 3 years imprisonment or fine up to 300 currency points, or both.
• 1 currency point: UGX 20,000.

Benefits of e-Invoicing in Uganda

E-invoicing offers several practical advantages for businesses in Uganda:

• Streamlines tax reporting and compliance with URA regulations.
• Reduces the risk of fraud and counterfeiting of invoices.
• Increases efficiency in transaction processing and record-keeping.
• Enables real-time VAT collection, improving cash flow.
• Minimises physical document storage and loss risks.

How can ClearTax help a business with e-Invoicing in Uganda?

ClearTax makes e-invoicing in Uganda easier for businesses with a complete solution:

• Integrates seamlessly: Easily connects with your existing billing or POS system to generate invoices in the required format.
• Ensures compliance: Validates invoices before submission, ensuring they comply with URA’s e-invoicing regulations.
• Secures your data: Safely stores e-invoices, making them readily accessible for audits and future reference.
• Keeps you on track: Sends reminders to ensure you meet deadlines and stay compliant with tax requirements.
• Handles digital signatures: Assists businesses in managing digital signatures, ensuring invoices are properly signed for URA approval.

Conclusion

In conclusion, e-invoicing compliance in Uganda requires businesses to follow the proper processes, including registering with the EFRIS system, using the mandated JSON format, applying digital signatures, and ensuring invoices include the unique Fiscal Document Number. Failure to comply can result in penalties, including fines or imprisonment. ClearTax simplifies this transition by offering seamless integration with existing systems, ensuring compliance with URA regulations, validating invoices before submission, and helping businesses with secure digital signing and timely submissions.