Assessing the effectiveness of the electronic fiscal receipting and invoicing system (EFRIS) in improving tax compliance on real estate developments

Abstract

A recent study (Besigomwe, 2025) reported that digital tax systems such as the Electronic Fiscal Receipting and Invoicing System (EFRIS) in Uganda face significant resistance among small and medium enterprises (SMEs) due to low awareness, technical challenges, and fear of increased tax obligations. In order to identify factors that may affect the adoption of EFRIS among real estate retail property operators, this study was carried out to assess awareness, hindrances, and measures to enhance readiness and capacity for EFRIS adoption among real estate retail property operators in Ntinda, Kampala. The objectives of the study were to: i. examine the level of awareness and understanding of the EFRIS system among real estate retail property operators in Ntinda; ii. identify the hindrances that limit the adoption and use of EFRIS in the real estate sector; and iii. explore possible measures that could enhance the readiness and capacity of real estate operators to adopt EFRIS. The study involved collection of both primary and secondary data and information from a sample of 26 real estate retail property operators in Ntinda by: (i) administering structured questionnaires; (ii) conducting key informant interviews with Uganda Revenue Authority (URA) staff and property managers; and (iii) reviewing relevant documents and URA reports. The findings indicated that 76.9% of respondents were aware of the EFRIS system, mainly through URA sensitization programs, but only 26.9% had received formal training on its use. The most cited anticipated barrier to adoption was lack of awareness and training (69.2%), followed by fear of higher tax obligations (61.5%) and perceived system complexity (53.8%). A majority (76.9%) expressed willingness to adopt EFRIS if challenges were addressed, with preferred measures including more awareness campaigns (84.6%), practical training workshops (73.1%), and improved system reliability (53.8%). Incentives such as reduced tax rates and waiver of initial penalties were also highlighted as important motivators. The study concluded that while awareness of EFRIS among real estate operators was relatively high, significant gaps in training, technical confidence, and institutional support limited readiness for adoption. Addressing these gaps through targeted awareness, simplified procedures, and supportive infrastructure would enhance compliance and uptake. The study recommended that further research should investigate the socio-economic impacts of EFRIS adoption on informal landlords and tenants to develop tailored interventions that mitigate resistance and improve system acceptance.