Kenya Revenue Authority (KRA) has pushed the deadline for migration to Tax Invoice Management System (TIMS) by VAT-registered taxpayers to 30th November this year.
In a statement through the Corporate Twitter Account, KRA stated it arrived at a decision after noting that some taxpayers were still obtaining and integrating Electronic Tax Registers (ETR) with their invoicing systems.
“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 30th November 2022, to allow the taxpayers complete this process,” noted KRA.
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The extension is a relief to taxpayers who are still in the process, as they escape penalties for missing the deadline.
KRA launched the migration on July 31st 2022.
“All VAT registered taxpayers are required to have in place the new Electronic Tax Registers by 31st July, 2022 and generate validated and electronically transmitted tax invoices in compliance with the VAT (Electronic Tax Invoice) Regulations, 2020,” stated KRA.
VAT-registered taxpayers have complained about the process, accusing the taxman of not considering its financial implication, especially among Small and Medium enterprises (SMEs).
The process involves the acquisition of ETR machines which taxpayers say is too expensive, hence increasing the cost of doing business for the small businesses who are already grappling with inflation-related challenges.
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