KRA Waives Penalties for Non-VAT Registered Businesses on Electronic Tax Invoices
On Wednesday, the Kenya Revenue Authority (KRA) announced a forgiveness of penalties for businesses not registered for VAT. This aims to offer these businesses an extended period to join the Electronic Tax Invoice Management System (eTIMS) platform and handle electronic invoicing.
According to the announcement by KRA, businesses falling under this category can join the IMS platform until March 31, 2024, without facing any penalties.
“To facilitate business continuity and allow for sufficient time for taxpayers to make adjustments in their systems and business operations, KRA wishes to notify non-VAT registered taxpayers that onboarding to the eTIMS platform will be available up to 31st March 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”, the statement read.
The change will make it easier for these businesses to manually input manually created invoices and receipts into the KRA system, following a previous instruction.
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“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 IMS platform.”, KRA communicated at the time.
KRA aims to ensure that starting from January 1, 2024, businesses in this particular category send their invoices using eTIMS.
The eTIMS platform allows businesses to issue electronic invoices through various avenues instantly.
The recently introduced platform is said to be both efficient and economical, enabling businesses to utilize mobile apps and an online portal at no additional cost.
The KRA declared its transition to the new platform in February 2023, affirming that the updated online portal will enable the immediate submission of invoices.
At the same time, the mobile app will offer an additional method for generating tax invoices.
The Kenya Revenue Authority (KRA) has been hosting webinars to instruct Kenyan citizens on the procedures for the current onboarding process.
KRA Waives Penalties for Non-VAT Registered Businesses on Electronic Tax Invoices