Tax compliance is one of the areas small business owners in Uganda find most confusing — and one of the most important for growth. Without a TIN you cannot bid for most contracts, open some bank accounts or supply many corporate clients. And since the Uganda Revenue Authority (URA) expanded its electronic invoicing system, EFRIS, buyers increasingly ask suppliers for e-invoices before they pay.
This guide explains, in plain language, how TIN registration works, when you must register for VAT, who must use EFRIS, and how to stay on the right side of URA. It is general guidance — tax law changes, so confirm details with URA or a tax adviser for your situation.
- Every business should register for a TIN on the URA portal.
- From 1 July 2026 the VAT registration threshold is UGX 300 million a year (with a quarterly test).
- EFRIS has applied to all VAT-registered taxpayers since 2021, and to non-VAT businesses in 12 designated sectors since July 2025.
- Your customers may not be able to claim expenses unless your invoice is an EFRIS e-invoice.
What is a TIN and how do you get one?
A Taxpayer Identification Number (TIN) is your unique identifier with URA. Individuals and non-individuals (companies, partnerships, NGOs) apply through the URA web portal. Companies enter their URSB business registration number and the system pulls the registered details. Once approved, you receive your TIN certificate by email.
Keep your TIN details up to date — address, phone, email and business activities. Many compliance problems start with an old email address that never receives URA notices.
Which taxes apply to a typical small business?
| Tax | Who it applies to |
|---|---|
| Income tax | Businesses earning income — companies pay corporation tax; individuals pay on business profits. Small businesses below set turnover levels may fall under presumptive tax rules. |
| PAYE | Employers deduct tax from employees’ salaries above the threshold and remit it monthly. |
| VAT | Businesses above the VAT threshold, or those registered voluntarily. |
| Withholding tax | Certain payments (for example by designated agents, or on some services) have tax withheld at source. |
| Local service tax | Collected by local governments from employees and some business owners. |
When must you register for VAT?
From 1 July 2026, the annual VAT registration threshold rose to UGX 300 million, up from UGX 150 million. A business must also register if its taxable supplies in any three consecutive months exceed UGX 75 million. Some businesses register voluntarily because their corporate or government clients prefer VAT-registered suppliers — weigh the administrative cost before doing so.
What is EFRIS?
EFRIS — the Electronic Fiscal Receipting and Invoicing Solution — is URA’s system for issuing invoices and receipts electronically. Each e-invoice is validated by URA in real time and carries a fiscal document number and QR code that buyers can verify.
Who must use EFRIS?
- All VAT-registered taxpayers — mandatory since January 2021.
- Businesses in 12 designated sectors, even if not VAT-registered — mandatory from 1 July 2025, with URA publishing a public notice in August 2026 reminding businesses of the requirement. The listed sectors include areas such as fuel wholesale and retail, mining and quarrying, and manufacturing. Check URA’s notice to see whether your sector is covered.
- Very small taxpayers below the exclusion threshold are excluded from mandatory use, and any business may use EFRIS voluntarily.
Why EFRIS matters even if you are not required to use it
Buyers who must use EFRIS can face restrictions on deducting expenses that are not supported by valid e-invoices from designated suppliers. In practice, corporate clients and NGOs are increasingly asking every supplier for EFRIS invoices. Being EFRIS-ready can therefore win you business. And from 1 July 2026, designated VAT withholding agents no longer withhold VAT on payments to suppliers who issue EFRIS e-invoices — a cash-flow advantage.
How to start using EFRIS
- Log in to the URA web portal and select EFRIS.
- Choose your issuing method: the free web portal, desktop software, the mobile app, an electronic fiscal device (EFD), or a system-to-system integration with your accounting or POS software.
- Register your products or services and their tax codes.
- Issue invoices and receipts through EFRIS for every sale.
URA publishes an EFRIS handbook and has a helpline and WhatsApp support for registration problems.
Paper invoice books after EFRIS
Many businesses still use printed delivery notes, job cards and internal receipt books for operations — that is fine. What changes is that the tax invoice must come from EFRIS when you are required to use it. When ordering printed books from a stationery printer such as BrandAds Limited, it is sensible to label them “Delivery Note” or “Job Card” rather than “Tax Invoice” so there is no confusion with your EFRIS documents.
Good habits that keep you compliant
- File returns on time — even “nil” returns when there was no activity.
- Keep records of all sales and purchases for the required period.
- Separate business and personal bank and mobile money accounts.
- Reconcile EFRIS sales with your bank deposits monthly.
- Use a qualified accountant, at least for year-end returns. You can find accounting and tax consultants on Uglisted.
Frequently asked questions
Is a TIN free?
Yes. TIN registration on the URA portal does not attract a fee. Be cautious of anyone charging to “process” a TIN without clear professional services.
Can I issue an EFRIS invoice from my phone?
Yes. URA provides a mobile app and web portal suitable for businesses with modest sales volumes.
What happens if I don’t comply?
Penalties apply for failing to register, file or issue required e-invoices, and buyers may refuse non-compliant invoices. Speak to URA or a tax adviser early if you are behind.