A technology firm has developed a solution dubbed DigiTax to simplify tax compliance for private schools to ensure seamless onboarding and compliance with the Kenya Revenue Authority’s (KRA) Electronic Tax Invoice Management System (eTIMS).
DigiTax, developed by Ufanisi Technology, is an approved eTIMS compliance integrator.
The move to modernize and streamline the process of transmitting taxes by KRA is aimed at ensuring tax compliance by businesses.
To digitise tax systems, the Tax Procedures Act was revised, and the use of electronic tax invoices was introduced for all taxpayers, including those not VAT-registered.
The law makes it mandatory for any business to be onboarded on the platform and generate electronic tax invoices.
According to KRA, eTIMS is a software solution that provides taxpayers with options for a simple, convenient, and flexible approach to electronic invoicing.
Taxpayers can access the platform from the comfort of their homes or offices through computers, laptops, tablets, smartphones, and Personal Digital Assistants (PDAs).
Members of the Kenya Private Schools Association were taken through the process of onboarding to the eTIMS compliance process by officials from KRA and DigiTax. Namiri Technology Chief Executive Officer (CEO) Caine Wanjau said they came up with a solution to simplify tax compliance.
“DigiTax streamlines eTIMS compliance, making the tax compliance transition easier for Kenyan schools,” said Wanjau, adding that schools can seamlessly onboard eTIMS, eliminating the complexities and limitations posed by traditional hardware-based systems.
The firm has tailored solutions for specific sectors, though their main focus is on schools. They have partnered with some providers of school software and solutions to help them integrate their solutions with eTIMS.
Initially, he stated that schools were not required by KRA to use any tax software since school fees and some services in the education sector were tax-exempt.
“Before eTIMS, if you were tax exempt, you didn’t need to use any specific solution to generate a receipt,” explained Wanjau, adding that DigiTax helps schools find a solution and generate an eTIMS-compliant receipt.
DigiTax has already integrated and onboarded several private schools onto the eTIMS platform.
“We have tried to make the process as easy, simple, and quick as possible. It simplifies all the processes, which can be quite complex if you don’t know what you are doing. We navigate and assist companies on how to be compliant,” said Wanjau.
The firm provides value-added services to schools through assistance to clear a backlog of tax invoices from January after the lapse of the eTIMS compliance window and ensure the invoices are up-to-date.
By Sadik Hassan