KRA installs VAT systems to nab tax cheats.

The Kenya Revenue Authority (KRA) issued a timetable for the implementation of a new electronic ledger that captures and sends all transactions, especially invoices to the tax authorities in real time.

Yesterday, in a notice, KRA provided the electronic tax registry service providers (ETRs) until January 15, 2022 to approve new ETR machines designed for real-time data transmission in the tax register.

KRA; image/courtesy

This will be achieved through the Invoice Management System (TIMS), an upgrade to the current ETR, which came into effect in August 2021.

“In this regard, KRA will no longer issue letters authorizing the purchase of TIMS non-compliant TIMS to newly registered taxpayers or to taxpayers intending to replace their existing ETRs,” the KRA said in a statement.

The implementation of TIMS, which is expected to strengthen tax compliance, will continue until July next year, when full business cooperation is expected to be achieved.

“As a result, ETR service providers are being notified of a moratorium on the issuance of electronic tax records that do not comply with the 2020 value-added tax regulations (electronic tax invoices) by January 15, 2020,” KRA said.

The intention is to make sure people only claim what is claimed when needed, according to Samuel Mwaura, a partner who manages tax services at the Grant Thornton audit firm.

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