The Kenya Revenue Authority (KRA) has recently reaffirmed its stance on the electronic generation and transmission of invoices for businesses, including those in the informal sector and small businesses. The use of the electronic Tax Invoice Management System (eTIMS) is now mandatory, and KRA is taking steps to ensure that all taxpayers comply with this requirement.
To facilitate compliance, KRA has developed simplified solutions under the name “eTIMS Lite” specifically for non-VAT registered taxpayers. These solutions are accessible through the eCitizen platforms via *222# for the USSD invoicing solution and ecitizen.kra.go.ke for the web-based invoicing solution.
Recognizing the diverse nature of businesses, particularly in the informal sector, KRA is committed to supporting and facilitating all taxpayers in meeting their tax obligations. This commitment is underscored by a collaborative approach to tax compliance, which includes extensive stakeholder engagements and taxpayer education initiatives.
In line with this approach, KRA has been actively engaging with various representative groups and associations in the informal sector, such as farmers, jua kali traders, and artisans, to provide direct support for onboarding to the eTIMS platform. This partnership aims to address any challenges faced by taxpayers in adopting the electronic invoicing system.
Furthermore, KRA is open to exploring tailored solutions to address specific needs and challenges encountered by taxpayers and representative bodies. One such consideration is the concept of reverse invoicing, where sellers can authorize buyers to issue invoices on their behalf. This flexibility demonstrates KRA’s commitment to accommodating the diverse needs of taxpayers while ensuring compliance with tax regulations.
Overall, KRA’s efforts are focused on ensuring a smooth transition to electronic invoicing for all taxpayers, regardless of their size or sector. By embracing technology and collaboration, KRA aims to streamline tax compliance processes and promote a culture of transparency and accountability in the business environment.
If you have any questions or require assistance with adopting the eTIMS system, I encourage you to reach out to KRA or your respective representative body for support. Together, we can work towards building a more efficient and compliant tax ecosystem in Kenya.