Business owners are racing against the clock to install required internet-enabled tax registers (ETRs), which is a requirement by the Kenya Revenue Authority (KRA) by November 30, 2022.
Although the body claimed that the grace period to comply with the instruction expires on Wednesday, 30th November. A spot check revealed that some small and medium-sized firms have not yet done so.
“The Kenya Revenue Authority would like to remind the public and all VAT (Value Added Tax) registered taxpayers that they are required to acquire and install the TIMS-compliant electronic tax registers by Wednesday, November 30, 2022,” KRA said.
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KRA is in a position to obtain real-time data on traders’ daily sales thanks to manufacturers and traders installing improved ETRs.This is an improvement over the current manual tax registers that hold sales data for examination by the KRA after 30 days. Traders are required to purchase the software in addition to the improved ETR devices.
Due to a supply issue, there was a transition delay, KRA in September extended the deadline so that firms could obtain the ETRs a second time.
In the most recent effort to stop tax evasion and increase revenue collections, the new automated registers will aid KRA in receiving sales and invoice data daily.
A penalty of Ksh1 million or a three-year prison sentence could be imposed on manufacturers and dealers who don’t update to ETRs at their business properties.
As the KRA works to address tax leaks from big taxpayers, companies with annual sales of at least Ksh5 million are required by law to have ETRs. Although KRA pushed for compliance, certain traders continue to complain about ETR machine software issues.
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