Kenya Revenue Authority (KRA) has said that all persons carrying on business such as those in the Informal Sector and Small Businesses will be required to electronically generate and transmit their invoices to KRA via the electronic Tax Invoice Management System (eTIMS).
- The new platform is an eTIMS simplified solution dubbed “eTIMS Lite” for non-VAT registered taxpayers.
- The platform is accessible via eCitizen platforms via *222# for the USSD invoicing solution and ecitizen.kra.go.ke for the web-based invoicing solution.
- Exemption of businesses whose turnover falls below KSh5 million per annum from mandatory eTIMS onboarding has effectively been rescinded. These business persons will now raise eTIMS invoices via eCitizen & USSD.
The launch of this new platform has been done just 27 days before the sunset date for mandatory eTIMS onboarding-which is March 31st, 2024. The idea is to sort out the problem of below-target uptake, especially by players in the informal segment of the economy.
In addition to the rollout of the simplified eTIMS solutions, KRA has also made concerted efforts towards publicity, awareness, and tax literacy through continuous stakeholder engagements and taxpayer education targeted at players in the informal sector who include farmers, jua kali traders, and artisans amongst others.
The Taxman has partnered with the informal sector representative groups and associations to facilitate direct support to taxpayers in these sectors to onboard eTIMS.
KRA has also invited taxpayers and representative bodies who may experience challenges adopting the existing solutions to reach out and get solutions tailored to their specific needs.
One such consideration is the reverse invoicing solution whereby a seller can/may give consent or authority to the buyer to issue invoices on their behalf.
Nevertheless, concerns continue to be raised over the headache that it takes 2 days for many taxpayers to raise an invoice via eTIMS.
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