In line with the Section 43 of the Value Added Tax Act 2013, every person in the course of business, registered as per Section 34 of the same Act, is required to keep a proper record of all the transactions made in the course of business. This may be in form of electronic or otherwise.
From the Act, the Commissioner may require the person to use an electronic tax register (ETR) in the form and description prescribed. This facilitates in assessing the transactions with the objective of determining the tax liability of any tax payer.
In order to facilitate this, the Kenya Revenue Authority is in the process of introducing a Tax Invoice Management System (TIMS), which is an enhancement of the current ETR system. TIMS will enable an automatic reporting of invoice transactions. With the introduction of TIMS, KRA will have made a tremendous step in enhancing tax compliance. The process is undergoing public participation in line with the requirements of the constitution before its full implementation.
Our team is keenly following up on the matter to update you on any new developments.