Last month (July 2022), KRA alerted the public and all VAT-registered taxpayers of the transitioning of VAT-registered taxpayers from the old electronic tax registers to the Tax Invoice Management System (TIMs). The transition was to be completed before the month elapsed.
KRA had stated that all VAT registered taxpayers were to secure the new Electronic Registers before the deadline. This would allow them to generate and electronically transmit tax invoice in accordance with the VAT (Electronic Tax Invoice) Regulations, 2022.
Although the TIMS system has been launched, and some businesses have already moved to the new system, the Kenya Private Sector Alliance (KEPSA) has been engaging with the KRA on matters related to the cost of compliance and the sufficiency of duration for compliance.
According to KRA, the TIMS system was launched to ensure effective and efficient capture of data using electronic means. This is to facilitate faster processing of VAT refunds, among other benefits related to business.
However, following a stakeholder meeting held by the Commissioner General yesterday (1ST August), the deadline for compliance has been extended for two months to September 30.
From the meeting, it also emerged that the compliance cost could not be claimed because the VAT (Electronic Tax Invoice) Regulation, 2020 could not provide details about the same.
At the same time, the tax Authority will continue to engage with suppliers to ensure that the TIMS kits being paid for are in Kenya.
Lastly, there will be bi-weekly meetings with all stakeholders to assess the implementation of TIMS to ensure a seamless transition.