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KRA pushes back eTIMS onboarding deadline to March 2024

Brian Murimi by Brian Murimi
December 27, 2023
in News
Reading Time: 1 min read

The Kenya Revenue Authority (KRA) is extending the deadline for non-value-added tax (VAT) registered businesses to begin using the new electronic Tax Invoice Management System (eTIMS), according to a notice issued Wednesday.

The tax authority said onboarding to the eTIMS platform will now be available to non-VAT registered taxpayers until March 31, 2024. The previous deadline was September 1, 2023.

“During the onboarding period, penalties provided in law for failure to issue electronic tax invoices will not be imposed on the non-VAT registered taxpayers,” the notice said.

Once onboarded, businesses will be required to capture any manually generated invoices and receipts issued after Jan. 1, 2024 retroactively in the system.

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“KRA is committed to continue supporting and facilitating all taxpayers to comply with the requirements of the law,” the notice stated.

The Commissioner of Domestic Taxes said the extended deadline aims to allow sufficient time for businesses to adjust.

“This will facilitate business continuity as taxpayers make necessary changes to their systems and operations,” he said.

The eTIMS platform was launched in 2020 to boost tax compliance by tracking transactions in real-time. Under the new e-invoicing system, taxpayers must electronically generate and transmit invoices to KRA.

As of January 1, 2024, any business expenses not supported by a valid electronic tax invoice will not be tax deductible, according to KRA.

The taxman said it would continue stakeholder engagement and awareness campaigns to aid taxpayer compliance. Simplified eTIMS solutions will also be introduced for small businesses.

“We are committed to supporting taxpayers meet the legal requirements,” the Commissioner said.

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Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

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