KRA Exempts Select Traders From Penalties for Failing to Issue Electronic Tax Invoices

Kenya Revenue Authority (KRA) has exempted taxpayers who are not registered for Value-Added Tax (VAT) from paying penalties provided for failing to transmit their invoices through the electronic Tax Invoice Management System (eTIMS) platform.

In a statement issued on Friday, the Authority noted that 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 by January 1, 2024.

However, for non-VAT registered users, the onboarding to the eTIMS platform will be available up to March 31, 2024.

“During the onboarding period, penalties provided in law for failure to issue electronic tax invoices will not be imposed on the non-VAT registered taxpayers,” KRA stated.

A file image of the reception area at KRA offices in Nairobi.



“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.”

In the statement, the Authority noted it had incorporated measures within the eTIMS platform to cater to various business models. 

The measures, according to KRA, would also ensure that the platform can easily be accessed on mobile phones, tablets, personal computers and laptops.

“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,” KRA added.

“To ensure a 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.”

The interventions will allow transparency in taxpayer transactions, and hence improve the accuracy of tax declarations.

The move will also streamline tax filing procedures, broaden the tax base and bolster revenue collection efforts to realise the Ksh2.57 trillion target in the 2023/24 financial year. 

Residents of Nakuru lining up to seek services from the Kenya Revenue Authority mobile services on November 24, 2023



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