Compliance with the VAT regulation 2020 -The Cabinet Secretary for National Treasury and designing through Legal notice 189 dated tenth September 2020 revealed the VAT Tax (Electronic Tax Invoice) Regulations, 2020 .L.N.-189—VAT-ELECTRONIC-TAX-INVOICE-REGULATIONS-2020.pdf) herein stated as “regulations”. These rules provided for the following: Adoption and usage of electronic tax invoicing or receipting systems by corporations as provided for beneath section sixty-seven of the VAT Tax Act, 2015; Obligations of the users of such systems; The requirements of valid tax invoices; Specification of the systems to be adopted; and Transition period amongst other requirements.
Section 13 of those rules provided a twelve months transition amount (1st August 2021), but KRA issued an extra 12 months extension period through their public notice dated ninth September 2021 (https://kra.go.ke/news-center/public-notices/extension-of-time-to-comply-with-the-value-added-tax-electronic-tax-invoice-regulations,-2020). In impact thus corporations are needed to confirm that they need to be complied with these regulations starting first August 2022
What this suggests to your Company Effective 1st August 2022, each VAT registered company/tax remunerator is required to own a tax register in situ capable of sending data to KRA in real-time and meeting all the opposite specifications as provided in the rules. it’s judicious you contact the ETR suppliers as revealed on the KRA website (https://www.kra.go.ke/images/publications/List-of-Approved-ETR-Suppliers–Manufacturers-as-at-30-March-2022.pdf )
in order that they will assess whether or not your existing ETR machines are often upgraded to fits this necessity otherwise you will be needed to get a brand new one
Failure to comply with the registration Non-compliance with these regulations will cause a penalty of not prodigious KES one million or to imprisonment or to both.
commonly asked queries Below may be a link to the frequently asked question with regards to the rules additionally because the ETR machines (https://kra.go.ke/helping-tax-payers/faqs/electronic-tax-invoice)
alternative VAT Compliance KRA has more and more been raising queries as a result of variances between sales declared within the monthly VAT returns {and the|and thus the|and also the} sales declared in the annual taxation return. it’s therefore judicious that taxpayers ought to conduct a voluntary reconciliation of the sales as declared in their VAT returns vis-à-vis the sales per book of accounts and the ensuing variations addressed. there’s also a requirement for a correct reconciliation of the sales accounts before the filing of VAT returns. Zero-rated sales and exempt sales ought to even be declared within the monthly VAT comebacks as required.
Some Tax Due Dates Below are the filing and payment due dates for the varied taxes, kindly note an equivalent to avoid penalties and interest. In the event of an inability to pay by the due date, there’s a requirement to tell the African country Revenue Authority and request a payment plan.
