k254 Nairobi News

Get Ready for Electronic Tax Invoicing (ETI) in Kenya As of January 1, 2024: What You Need to Know

KRA Pledges to Support Taxpayers to Comply with Electronic Tax Invoicing Requirements

The Kenya Revenue Authority (KRA) has announced a major shift in tax administration with the mandatory adoption of electronic tax invoicing (eInvoicing) for all businesses, effective September 1, 2023. This move, outlined in a press release dated December 29, 2023, aims to modernize tax systems and streamline compliance for all taxpayers, including those not registered for Value Added Tax (VAT).

Here's a breakdown of the new rules and what they mean for you:

1.1 About the New Rules:

All businesses, regardless of VAT registration status, must now issue and transmit electronic tax invoices (ETIs) through the eTIMS platform.

This applies to all transactions, including sales, purchases, and service delivery.

Businesses must also maintain electronic records of their stocks through eTIMS.

As of January 1, 2024, all expenses claimed in tax returns must be supported by valid ETIs generated and transmitted to the KRA system.

1.2 Key Areas of Concern:

Technology access: Some businesses, particularly smaller ones, may lack the necessary technology or internet access to comply with eInvoicing.
Cost implications: There may be costs associated with acquiring eInvoicing software or upgrading existing systems.
Training and awareness: Businesses need to ensure their staff are trained on how to use the eTIMS platform and understand the new regulations.

2. Benefits and Why the Government is Doing This:

Enhanced transparency: eInvoicing makes it easier for KRA to track transactions and reduce tax evasion.
Improved accuracy: Electronic records minimize errors and discrepancies in tax reporting.
Streamlined filing: eInvoicing simplifies tax filing procedures and reduces paperwork.
Broadened tax base: Bringing more businesses into the formal tax system can increase government revenue.

3. Call to Action:

Start onboarding early: Don't wait until the last minute to register for eTIMS. The onboarding process is open until March 31, 2024, for non-VAT registered businesses.
Seek support: KRA has established a comprehensive support framework to assist businesses with onboarding and eTIMS solutions.
Stay informed: Keep up-to-date with the latest eInvoicing regulations and requirements.

From k254 Nairobi News, we wish you a Merry Christmas and happy festive season! May 2024 be a year of prosperity and success for you and your business. Remember, staying compliant with eInvoicing regulations is key to a smooth and prosperous year ahead.

Additional Tips:

Visit the KRA website for more information on eInvoicing and eTIMS.
Consult with a tax advisor or accountant if you have any questions or concerns about the new regulations.
Utilize the available resources and support from KRA to ensure a smooth transition to eInvoicing.

By understanding the new eInvoicing requirements and taking proactive steps, businesses can adapt to this change and reap the benefits of a more efficient and transparent tax system.

Merry Christmas and a prosperous 2024 from k254 Nairobi News!

©K254 NAIROBI NEWS
Follow Us On:
Facebook|Twitter (X)|Instagram|Youtube
Email: info@k254nairobinews.com
Call/WhatsApp: +254792002265
Website: k254nairobinews.com

Our Services:
For Media/Event Coverage,Interviews,Public Relations-PR, Press Release Publication & Distribution, Digital Marketing, Website/Mobile-App/ERP/POS/SEO/ Google Business Maps & ICT System-Software Development Services, Photography, Video Production,Animation (Cartoons,Adverts),Drone Services, Green Screen, Branding & Designing,Logo Making,Business Cards, Printing, Editorial & Publishing Services, Bulk Sms, Language Translation, Voice-Over Services, Billboard Advertising, TVc & Radio Advertising,Business Expos/Events Planning & Management, Sound Systems/Public Address & Lightings; all other Advertising Services

By: ©K254 Media Network Africa
[A Lead Strategic Media,PR,Climate Sustainable Solutions, ICT & Innovation Service Provider Across Africa & International]