The Kenya Revenue Authority (KRA) has extended the deadline for the requirement by taxpayers to comply with regulations of the Tax Invoice Management System (TIMS) to November 30, 2022.
KRA announced the extension of the deadline on a public notice dated September 22, 2022.
The initial deadline was September 30, 2022, before the new deadline was set.
According to KRA, the deadline was pushed to allow the taxpayers to complete the process of configuration and integration of the new 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,” the notice read in part.
The authority has also appreciated the taxpayers who have already complied with the new regulation.
“Kenya Revenue Authority (KRA) appreciates the VAT registered taxpayers who have transitioned to the Tax Invoice Management System (TIMS) by completing the process of configuration and integration of the new Electronic Tax Registers (ETR) with their invoicing systems,” KRA said.
The overall aim of introducing TIMS is to increase VAT compliance, minimize VAT fraud and increase tax revenue.
All VAT-registered taxpayers are required to have in place the new ETRs to enable them to generate and electronically transmit their validated tax invoices to the KRA in compliance with the VAT (Electronic Tax Invoice) Regulations, 2020.
Failure to comply with any of the Regulations will result in penalties as specified in Section 63 of the VAT Act (2013).
"A person convicted of an offence under this Act for which no other penalty is provided shall be liable to a fine not exceeding one million shillings, or to imprisonment for a term not exceeding three years, or to both," the act states.