Kenya Revenue Authority (KRA) has extended the migration from the current Electronic Tax Register (ETR) to the new Tax Invoice Management System (TIMS) to 30th November 2022.
“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 to complete this process,” KRA said in a public notice.
TIMS is an upgrade of the current Electronic Tax Register (ETR) regime that was rolled out in 2005. It will facilitate electronic tax invoice management through standardization, validation, and transmission of invoices to KRA on a real-time or near real-time basis.
The new system will not only enhance compliance and increase VAT collections but also give visibility of vatable transactions, improving record keeping.
Those who do not comply with the regulations will be liable to a fine not exceeding $100,000, imprisonment for a term not exceeding three years, or both.
The legal basis of TIMS is the VAT Act of 2013 and the VAT (Electronic Tax Invoice) Regulations, 2020.