Value Added Tax Regulations (electronic tax invoices) were published on September 25, 2020. See legal notice No. 189 2020. The regulation aims to promote the administration of value added tax increased by the form of electronic tax invoice management.
The Kenya Revenue Authority (KRA) would like to inform the public that the implementation of electronic tax invoices will commence from 1 August 2021, in accordance with the Value Added Tax Regulations 2020 (Tax Invoices) electronic).
From now on, all registered taxpayers must comply with the requirements for setting up an electronic tax invoice within twelve (12) months of implementation.
When a person is unable to meet the deadline, they should apply for an extension to comply with the IRS. As a rule, the term will not exceed six months. The request for an extension must be made at least thirty (30) days before the expiration of the prescribed twelve-month period.
The main characteristics of a valid invoice are
- PIN and Taxpayer name,
- The date and time of the invoice,
- Serial number of the invoice,
- Buyer’s PIN (optional), Gross amount,
- The total amount of tax, Tax rate,
- The total net amount,
- Unique registration identifier,
- Digital signature (QR code)
Due to the transition period, new features, for example, QR codes, will only be visible when a Vat registered Trader has complied with the requirements of an electronic tax invoice.
Failure to comply with the Regulations is an offense that will attract penalties as specified in Section 63 of the VAT Act, 2013, that is, they shall be liable to a fine not exceeding Kshs. 1 million, or to imprisonment for a term not exceeding three years, or to both.
References
https://www.kra.go.ke/en/helping-tax-payers/faqs/electronic-tax-invoice
