Uganda Revenue Authority (URA) has urged tenants to demand Electronic Fiscal Receipting and Invoicing Solution (EFRIS) receipts from landlords whenever they pay rent, warning that receipts showing amounts lower than the actual rent paid could facilitate the concealment of rental income.
EFRIS is the Electronic Fiscal Receipting and Invoicing Solution. It is a business solution that enables businesses to record transactions and share transaction information with the Uganda Revenue Authority in real time. The solution ensures transparency and accuracy which enables collection of correct taxes.
EFRIS was introduced in 2020 to replace traditional paper invoicing with an electronic system that transmits transaction data to URA in real time
In a notice to tenants, URA said rental receipts should accurately reflect the amount actually paid, stressing that obtaining an EFRIS receipt is a tenant’s right under the law.
“The Uganda Revenue Authority (URA) encourages you to request an EFRIS receipt from your landlord every time you pay rent,” the tax authority said.
URA said the receipt enables tenants to properly substantiate their rental expenses and, where applicable, claim the correct input VAT.
“The receipt should reflect the actual amount of rent paid. This is your right under the law and helps you properly substantiate your rental expense and, where applicable, claim the correct input VAT,” URA said.
The tax authority said it had observed instances where landlords issue receipts showing amounts lower than what tenants actually pay.
“URA has observed instances where rent is consistently increased, but due to the non-issuance of EFRIS receipts or the issuance of receipts showing amounts lower than the actual rent paid, it becomes difficult to establish the actual rental income received,” the authority said.
According to URA, such practices can make it difficult for the tax authority to determine the actual rental income earned by landlords, potentially facilitating tax evasion.
“This facilitates the concealment of rental income and shields non-compliance,” URA warned.
The authority urged tenants not to accept receipts that do not correspond with the actual amount they have paid.
“Be firm in requesting your EFRIS receipt. Do not accept a receipt showing an amount different from the rent you actually pay,” URA said.
URA further cautioned tenants against allowing themselves to bear the inconvenience arising from a landlord’s failure to comply with tax requirements.
“Do not allow yourself to be inconvenienced because of your landlord’s non-compliance. Demand your EFRIS receipt. It is your right,” the notice stated.
The authority said compliance with the requirement would help protect both tenants and government revenue against tax leakage.
“Let us work together to protect you and protect the tax,” URA said.
The notice comes as URA continues to use EFRIS to improve the recording of business transactions, strengthen tax compliance and enhance the accuracy of information available to the tax authority.
The system is intended to provide a more reliable electronic record of transactions, helping the authority improve tax administration and identify potential cases of non-compliance.
