KRA extends deadline on real-time tax invoicing

The Kenya Revenue Authority (KRA) has extended the deadline of transitioning to the Tax Invoice Management System (TIMS) to from September 30 to November 30. 

The deadline extension allows more time for businesses to comply with the upgrade to real-time electronic tax registered for all VAT registered taxpayers.

“Having noted that a number of taxpayers are still in the process of acquiring and integrating the ETR devices with their invoicing systems, KRA further advises that an administrative decision has been taken to provide additional time until November 30 to allow taxpayers complete this process,” KRA said in a statement on Monday.

All VAT registered taxpayers are required to have in place new electronic tax registers and generate validated and electronically transmitted tax invoices in compliance with the VAT (Electronic Tax Invoice) Regulations, 2020.

After the lapse of the deadline, only taxable purchases validated through electronically transmitted invoices will be admissible for claim of input tax.

KRA has approved suppliers of new Electronic Tax Register (ETR) devices to facilitate in the transition.

This is the second extension of the deadline to transition with the taxman having extended pushed the deadline previously in August to allow more time to taxpayers to acquire and activate their TIMS devices.

The transition to real time electronic tax invoicing is expected to increase efficiency in tax administration and bolster tax compliance.