KRA delays the implementation of electronic tax invoicing


KRA delays the implementation of electronic tax invoicing
KRA offices in Nairobi's Times Tower. PHOTO | COURTESY

The Kenya Revenue Authority (KRA) has pushed the mandatory roll out of electronic invoice for Value Added Tax (VAT) to August 1, 2021.

This means that the taxman will begin administering VAT through the electronic tax invoice management system next month while VAT registered taxpayers will be required to fully comply with the move by August 1, 2022.

This means that the 2020 Value Added Tax (Electronic Tax Invoice) Regulations will now become effective one year after the date of roll out.

“Where a person is unable to comply within the timelines, they shall apply to the Commissioner of Domestic Taxes for extension of time to comply which shall not exceed six months,” KRA said in a statement on Tuesday.

“The application for extension shall be made at least 30 days before the expiry of the 12-month period specified.”

VAT registered persons will be obligated to record each sale using the new electronic receipting system with an invoice being generated with respect to the sale.

The recorded sales which include a description of goods and services sold are meanwhile to be submitted to the KRA.

Taxpayers failing to comply with the new regulations will be subject to fines stipulated in the VAT Act.

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