All VAT returns will be pre-filled with information available to Kenya Revenue Authority (KRA) from the January tax period, the Kenya Revenue Authority has said.
- •KRA says the move has been informed by their desire to simplify the tax collection process and enhance the taxpayer’s experience.
- •The taxman says any input VAT claim that is not validated through TIMS/eTIMS or against existing customs import declarations for import VAT claims will not be allowed.
- •The Tax Procedures Act was amended to require the use of electronic tax invoices by all taxpayers including those who are not VAT-registered.
“In this regard, we remind all taxpayers of their obligation to issue electronic tax invoices and transmit the invoice details to KRA as prescribed in law,” KRA said in a statement, “We further advise the VAT registered taxpayers that they are required to confirm the accuracy of the declaration before submission of the return since the pre-filled VAT return is a self-assessment return as prescribed in tax procedures act.”
Effective 1st September 2023, every person in business is required to issue, transmit Electronic Tax Invoices (ETI) and maintain a record of stocks through an electronic management system prescribed by the Commissioner (eTIMS).
- •Further, effective 1st January 2024, all taxpayers are expected to support expenses claimed in their tax returns with electronic tax invoices that have been generated and transmitted to KRA’s system.
- •The expansion of electronic tax invoices to incorporate all taxpayers is part of KRA’s strategy to enhance tax compliance.
- •KRA has tailored solutions within the eTIMS platform, to cater to various business models, sizes, and types of taxpayers that can be accessed on mobile phones, tablets, personal computers and laptops.
Meanwhile, medical practitioners have raised issues with the new regulations that require any expenditure to be backed by an eTIMS invoice. According to stakeholders, health services are unique and following the new regulations would make the process complex and unnecessarily tedious. They’ve also pointed out patient confidentiality, data privacy and security concerns that would arise from sharing medical services invoices with a third party.
Kenya Medical Association (KMA), Kenya Dentists Association (KDA), and KRA have agreed to establish a working group to develop an alternative framework in discussions with insurance providers, including NHIF, according to a statement by KMA dated Jan 15th.
