The Kenya Revenue Authority (KRA) has announced that all businesses, including those not registered for VAT, must use the eTIMS platform to generate and transmit their invoices to KRA electronically.
This is based on the amended Finance Act 2023, which sets the compliance deadline as September 1, 2023.
From January 1, 2024, any business expenditure without a valid electronic tax invoice will not be deductible for income tax purposes.
KRA has given businesses a grace period until March 31, 2024, to register on eTIMS and avoid penalties. Non-VAT-registered taxpayers will not be penalized if they join the platform during this period.
However, they must input all the invoices and receipts issued manually after January 1, 2024, onto the KRA system.
“To support businesses and allow time for adjustments, onboarding to eTIMS for non-VAT-registered taxpayers will be available until March 31, 2024. Penalties won’t be imposed during this onboarding period,” said the notice from the KRA Commissioner for Domestic Taxes.
Electronic Tax Invoicing for Non-VAT Registered Persons 🧵
We would like to remind the public that starting September 1, 2023, all businesses, including those not registered for VAT, must electronically generate and transmit their invoices to KRA through the eTIMS platform. pic.twitter.com/g0LGwvmZV8
— Kenya Revenue Authority (@KRACorporate) December 27, 2023
KRA said that it will conduct public awareness campaigns, stakeholder engagements, and taxpayer education to support and facilitate compliance with the new requirement. It will also offer varied and simplified solutions for different taxpayer segments.
