- The Tax Procedures Act has been amended to require the use of electronic tax invoices by all taxpayers, including those who are not VAT-registered.
- Effective September 1, 2023, every person in business is required to issue and transmit Electronic Tax Invoices (ETI) and maintain a record of stocks through an electronic management system prescribed by the Commissioner (eTIMS).
- Starting January 1, 2024, all taxpayers will be expected to support expenses claimed in their tax returns with electronic tax invoices generated and transmitted to KRA’s system.
- KRA is expanding electronic tax invoices to incorporate all taxpayers as part of their strategy to enhance tax compliance.
- KRA has tailored solutions within the eTIMS platform to cater to various business models, sizes, and types of taxpayers, accessible on mobile phones, tablets, personal computers, and laptops.
- An online portal is available for service-oriented businesses, while system-to-system integration options are available for entities using software billing systems and bulk invoicing.
- KRA is partnering with government and private agencies to develop simplified solutions for taxpayers with limited technology devices.
- KRA has established a comprehensive support framework across its offices to assist taxpayers in the onboarding process and provide education on suitable eTIMS solutions.
- These interventions aim to enhance transparency in taxpayer transactions, streamline tax filing procedures, broaden the tax base, and improve revenue collection efforts.
- Existing non-VAT registered taxpayers have until March 31, 2024, to onboard to the eTIMS platform without penalties for failure to issue electronic tax invoices.
- Once onboarded, they will be required to progressively capture manually generated invoices and receipts issued after January 1, 2024, onto the KRA system.
Source: sokodirectory.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.
