KRA VAT Collections Hit Sh30 Billion Monthly After Mandatory Electronic Invoicing Enforcement

• Monthly domestic VAT collections have increased to Sh28–30 billion, up from Sh20 billion, due to mandatory electronic tax invoicing (e-TIMS).
• Annual domestic VAT collections are now estimated at Sh96–100 billion.
• The e-TIMS system, introduced in early 2023, enables real-time tracking of taxable sales, reducing tax evasion and broadening compliance.
• Reverse invoicing, introduced in December 2024, has captured Sh800 million in previously unreported transactions.
• Tax base expansion in 2024/25 brought in Sh2.9 billion from previously unregistered businesses, supporting the goal of raising revenue to 20% of GDP.

Source: eastleighvoice.co.ke

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.

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