- EAC member states are encouraged to digitalize VAT systems for better compliance and efficiency.
- VAT is crucial for African economies but faces challenges like compliance gaps and administrative inefficiencies.
- Dr. Kennedy K. Mbekeani from AfDB stresses the importance of digital technologies and training for tax authorities.
- A seminar in Nairobi focused on improving VAT compliance through digital solutions.
- Innovations like e-invoicing and automated audits were discussed to enhance VAT systems.
- Case studies from Kenya, Uganda, and Tanzania highlighted successful e-Tax compliance advancements.
- AfDB supports tax reforms and public-private partnerships in digital tax initiatives.
- Kenya is recognized for pioneering e-Tax systems alongside Senegal and South Africa.
- KRA has implemented e-filing and data-driven VAT collection systems.
- Uganda’s EFRIS system has increased VAT collections by nearly 50 percent.
- EFRIS mandates electronic invoicing, improving transaction transparency and tax assessments.
- Some businesses initially resisted EFRIS, but its benefits are now recognized by medium and large enterprises.
Source: observer.ug
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
