The Kenya Revenue Authority said Friday it has tailored solutions within the eTIMS platform, to cater to various business models, sizes, and types of taxpayers that can be accessed on mobile phones, tablets, personal computers, and laptops.
This will ensure a smooth transition for taxpayers to use electronic tax invoices by all taxpayers, including those not VAT-registered, the Kenya Revenue Authority (KRA) said in a statement.
An online portal has been availed for those dealing with service-oriented businesses, while system-to-system integration options are available for entities utilizing software billing systems and those engaging in bulk invoicing.
In a move aimed at modernizing tax systems and fostering seamless compliance, the Tax Procedures Act was amended to require the use of electronic tax invoices by all taxpayers including those who are not VAT-registered.
Effective September 1, 2023.
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This will ensure 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).
Effective January 1, 2024, all taxpayers will be expected to support expenses claimed in their tax returns with electronic tax invoices that have been generated and transmitted to KRA’s system.
Expanding electronic tax invoices to incorporate all taxpayers is part of KRA’s strategy to enhance tax compliance.
KRA is leveraging modern digital infrastructure to provide flexible tax solutions aligned with evolving business needs.
To ensure wide coverage and to support taxpayers with limited technology devices, KRA is partnering with government and private agencies for the development of more simplified solutions that meet the taxpayers within their eco-system while facilitating them to comply.
KRA said in a statement it has established a comprehensive support framework across its offices, nationwide.
This initiative aims to assist taxpayers in the onboarding process and provide education on the most suitable eTIMS solutions tailored to their specific requirements.
These interventions are anticipated to enhance transparency in taxpayer transactions, thereby improving the accuracy of tax declarations.
The move also seeks to streamline tax filing procedures, broaden the tax base, and ultimately bolster revenue collection efforts.
For existing non-VAT registered taxpayers, onboarding to the eTIMS platform will be available up to March 31, 2024, to facilitate business continuity and allow for sufficient time for these taxpayers to make adjustments in their systems and business operations.
During the onboarding period, penalties provided in law for failure to issue electronic tax invoices will not be imposed on non-VAT registered taxpayers.
Once onboarded, they will be required to progressively capture manually generated invoices and receipts issued after 1st January 2024 up to the date of onboarding, onto the KRA system.
“KRA remains committed to fostering a conducive environment for businesses while advancing its mission to modernize tax administration through innovative, user-friendly, and technology-driven solutions,” the statement said.
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