- The Kenya Association of Manufacturers (KAM) has raised concerns about delays in VAT refunds with the IMF team.
- KAM also raised concerns about taxation, regulatory burdens on manufacturers, and the shortage of US dollars in the market.
- Fluctuation in the availability of the US dollar hinders manufacturers’ ability to meet import payment obligations on time, delaying procurement of raw materials and interfering with production schedules.
- The Kenya Revenue Authority (KRA) is preparing regulations that require all businesses to issue electronic tax invoices.
- Failure to comply with the new law will result in a penalty twice the tax due.
- KRA will have visibility of stock movements and cross-check with receipts presented.
- All businesses, including those not registered for VAT, are required to electronically generate and transmit tax invoices to KRA via the electronic Tax Invoice Management System-eTIMS.
- Any business expenditure not supported by an electronic invoice will not be deductible for tax purposes from 1st January 2024.
Source: kenyanwallstreet.com
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.
