# Tax and URA

How NFE meets its URA obligations: EFRIS invoicing, the monthly VAT return, and the VAT, PAYE, withholding and income tax calendar. Adapted from GitLab's Tax pages.

# Monthly URA routine: EFRIS invoices and VAT return

# Monthly URA routine: EFRIS invoices and VAT return

**Owner:** Aaron Tushabe · **Backup:** *to be named* · **Last reviewed:** 29 Oct 2026

*Adapted from GitLab's [Tax](https://handbook.gitlab.com/handbook/finance/tax/) pages (CC BY-SA 4.0).*

Each month NFE issues its electricity bills as fiscal invoices in **EFRIS** and files the **Monthly VAT return** in **eTax**. The return for month M is due on the **15th of month M+1**.

This page is the source of truth for the routine. Claude's `ura-monthly-vat` skill follows it, so to run it with Claude, say **"run the ura-monthly-vat routine"**.

## Rules

- The taxpayer is **Watt Works Foundation Limited**. "Nearly Free Energy" is the brand only.
- Aaron logs in to EFRIS and eTax himself, and types every CAPTCHA and OTP. Logins are in the password manager.
- Only **one eTax session** at a time. Opening eTax in a second tab logs the first one out.
- Only generate an EFRIS invoice when its gross amount matches the billing PDF total **to within 1 UGX**. If it doesn't, stop and check.
- Aaron submits the VAT return himself.
- Record every FDN (fiscal document number) and the return's acknowledgement number in that month's working notes.

## Step 1: Review the month's invoices

Invoices are in the Sezibwa Rentals folder, under `<Month YYYY> Invoices/NFE-YYYY-NNNNN.pdf`. Check each one against the tariff:

| Tier | kWh | UGX per kWh, excluding VAT |
|---|---|---|
| T1 | 1–15 | 250 |
| T2 | 16–80 | 779.40 |
| T3 | 81–150 | 412 |
| T4 | 151+ | 779.40 |

There's also a service charge of UGX 7,320 a month, and VAT of **18%** on everything. Build a review table (invoice, customer, kWh per tier, taxable amount, VAT, total) and flag anything that doesn't add up.

## Step 2: Issue the invoices in EFRIS

In EFRIS, go to Fiscal Document Management → Receipts/Invoices → **Issue**.

1. **Section A:** Branch = Watt Works Foundation Limited; Currency = UGX; Seller's Reference No. = the NFE invoice number.
2. **Section B:** pick the buyer from **Frequent Contacts**. The customer-to-contact mapping is in the working notes. For a new customer, add them as a contact first.
3. **Section C:** add one line per tier, with the kWh from the bill as the quantity, plus the service charge. EFRIS prices include VAT:

   | Code | Item | Unit | Price incl. VAT |
   |---|---|---|---|
   | 001 | First 15 kWh | kWh | 295 |
   | 002 | Between 16–80 kWh | kWh | 919.69 |
   | 003 | Between 81–150 kWh | kWh | 486.16 |
   | 004 | Above 150 kWh | kWh | 919.69 |
   | 005 | Service Charge | per month | 8,637.60 |

4. **Section D:** set Payment Mode to **Mobile money**. It defaults to Cash.
5. Check the gross amount against the bill (within 1 UGX), then click **Generate Invoice** and confirm **once**.
6. Note the FDN and verification code.
7. After the last invoice, open **Fiscal Document Inquiry** and confirm the count is right, there are no duplicates, and every invoice is "Valid".

## Step 3: File the Monthly VAT return in eTax

1. Go to e-Services → Return → **Monthly Value-Added Tax**. Set the period to the month and choose **Submit Return** (not View Return).
2. eTax prefills sales and purchases from EFRIS **by invoice date**. Invoices issued in month M+1 belong to month M+1's return. **Decision (Sep 2026): file as prefilled**, and never add carried-over invoices by hand.
3. **Sales** tab: set "additional sales to declare?" to **No** (it defaults to Yes). **Purchases** tab: set "dispute prefilled purchases?" to **No** (it defaults to Yes). UEDCL purchase invoices come in from EFRIS automatically.
4. Review Input Tax Allowed, VAT Withholding Credit and the Tax Summary: sales, output VAT, input VAT, net VAT.
5. Aaron submits. Save the acknowledgement (`EB…`) receipt as `URA_VAT_Return_<Mon><YYYY>_Ack_<ref>.pdf` in that month's Invoices folder.

## Step 4: Close out

In that month's working notes, record: the filed figures, the acknowledgement number, the FDNs, which invoices carry over into next month's return, and follow-ups. Then post the VAT payment in ERPNext against the **VAT** account.

## Known issues

- [ ] The billing template shows the wrong seller VAT number. It should show the company TIN.
- [ ] Two customers share service address R5.

## Other URA obligations

**UNVERIFIED: confirm with the accountant.**

| Obligation | When | Status |
|---|---|---|
| VAT return | 15th of each month | Filed monthly (this page) |
| PAYE | 15th of each month, once there are salaried staff | Registered Aug 2025; confirm whether returns are due |
| Withholding tax | When paying suppliers that require it | To confirm |
| Provisional income tax | During the year | To confirm |
| Annual income tax return, FY2025-26 | About 31 Dec 2026 | To confirm with the accountant |

## Related

- [VAT treatment decisions](/link/219)
- [Roadmap](/link/88): EFRIS integration for billing
- [Battery import cost analysis](/link/15): import VAT and withholding tax (confirm current rates)

# VAT treatment decisions

# VAT treatment decisions

> **Planned: not yet written.** Owner: Aaron Tushabe. Trigger: the accountant's VAT review comes back.

A newest-first log of VAT decisions:

| Date | Decision | Why | Who |
|---|---|---|---|
| Sep 2026 | File the monthly return as prefilled from EFRIS; never add carried-over invoices by hand ([routine](/link/218)) | eTax prefills by invoice date | Aaron Tushabe |

To be decided with the accountant:
- [ ] How VAT payments made during the Open Collective years are treated against output VAT. They're currently debited to the VAT account.
- [ ] VAT on future commercial tariffs ([Commercial RPMs](/link/146)).
- [ ] Input VAT on site equipment and imports.
- [ ] The VAT position of grants and owner contributions.