Monday, June 17, 2024

KRA waives penalties to non-VAT registered taxpayers

Kenya Revenue Authority (KRA) has confirmed waiver on penalties to non-VAT taxpayers onboarding the Electronic Tax Invoicing (eTIMS) platform.

Through a statement, the taxman noted that from January, 2024 expenses lacking valid tax invoices will not be deducted for income purposes.

In order to support the smooth transition, KRA has waived penalties for those onboarding the platform with the services valid until March 31st, 2024.

“We would like to remind the public that starting September 1, 2023, all businesses, including those not registered for VAT, must electronically generate and transmit their invoices to KRA through the eTIMS platform.

From 𝐉𝐚𝐧𝐮𝐚𝐫𝐲 𝟏, 𝟐𝟎𝟐𝟒, any business expenditure lacking a valid electronic tax invoice won’t be deductible for income tax purposes. It’s crucial for businesses to comply with this requirement.

o support businesses and allow time for adjustments, onboarding to eTIMS for non-VAT registered taxpayers will be available until 𝐌𝐚𝐫𝐜𝐡 𝟑𝟏, 𝟐𝟎𝟐𝟒. Penalties 𝐰𝐨𝐧’𝐭 be imposed during this onboarding period.

During the onboarding phase, non-VAT registered taxpayers can join without facing penalties. This aims to facilitate a smooth transition to the new electronic tax invoice system.” said KRA

Taxpayers joining the platform will however be required to progressively input invoices and receipts issued after January 2024 progressively for the purpose of record keeping.

“Once onboarded, taxpayers must 𝐩𝐫𝐨𝐠𝐫𝐞𝐬𝐬𝐢𝐯𝐞𝐥𝐲 𝐢𝐧𝐩𝐮𝐭 manually generated invoices and receipts issued after January 1, 2024, up to the onboarding date, onto the KRA system. This ensures a comprehensive record of transactions.” they said

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