KRA Orders All Small Businesses to Transmit Invoices Through eTIMS: "Comply"

 

The Kenya Revenue Authority (KRA) has revoked its decision to exempt small businesses with an annual turnover of below KSh 5 million from transmitting invoices electronically. KRA deployed revenue service assistants to facilitate tax compliance. In a notice on Monday, March 4, the government's principal revenue collector noted that all businesses in Kenya, including those in the informal sector, must transmit invoices via the electronic tax invoice management (eTIMS) system. KRA unveiled a new eTIMS solution dubbed eTIMs Lite for non-Valued Added Tax (VAT) registered taxpayers.  “KRA would like to remind the public that all persons carrying on business including those in the informal sector and small businesses are required to electronically generate and transmit their invoices to KRA via the eTIMS system," KRA stated. How to access eTIMs Lite The taxman said eTIMS Lite can be accessed on the eCitizen digital payment platform or dialling *222#. eTIMS Lite is part of KRA's efforts to support and facilitate taxpayer compliance with the law. KRA set the deadline for eTIMS onboarding for March 31 amid low registration. Per the Finance Act 2023, unless an expense invoice was generated through eTIMS, it will not be deducted from the taxable income. This means that businesses must ensure their suppliers are also integrated on eTIMS so that their supply expenses can be deducted from the taxable income.

by  Japhet Ruto