Type: Legislation
Effective Date: Phased rollout
Uganda’s EFRIS e-invoicing system shows that real-time invoice validation can significantly improve VAT compliance, with liabilities rising by about 150% and inflated input claims dropping by 43%. The gains were driven mainly by behavioural change, as firms could no longer rely on unsupported input VAT once transactions required electronic validation. While input fraud declined, some misreporting shifted toward under-reporting of sales, highlighting that compliance risks evolve rather than disappear. Targeting large taxpayers for system-to-system integration proved highly effective, both increasing enforcement impact and bringing around 12,000 new VAT filers into the system. Overall, Uganda’s experience demonstrates that e-invoicing is not just digitalisation but a structural shift in tax control that expands the tax base and improves compliance.
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