Many months ago, tax collector the 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).
KRA had stated that all VAT-registered taxpayers were to secure the new Electronic Registers before mid-2022. This would have allowed them to generate and electronically transmit tax invoiced in accordance with the VAT (Electronic Tax Invoice) Regulations, 2022.
Around the same period too, the deadline was extended to November 2022.
KRA had also said that 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, there have been new developments regarding the roll-out of TIMs following an announcement by the KRA Board Chair that TIMs will further be upgraded to incorporate a new electronic feature. Reportedly, eTIMS is a newer version of TIMS that offers a convenient technology solution to help taxpayers meet their compliance requirements through a software solution.
New eTIMS features
TIMS implementation has posed challenges for taxpayers, such as difficulty with bulk invoicing, complex business processes, and real-time invoice transmission.
To this end, and as said, KRA is launching eTIMS to lower compliance costs by reducing hardware costs and improving real-time invoice transmission accuracy for better declaration and reconciliation between returns and payments.
Here are some of its features:
- Cross-platform access (computers and mobile phones)
- User-friendly and adaptable design
- Convenient solution for taxpayers to meet compliance needs
So, who needs to pick the new system?
Well, according to KRA, out that 42.7% of VAT-registered businesses have yet to adopt TIMS. Thus, eTIMS aims to target all business sizes (small, medium, and large taxpayers) to achieve maximum compliance.
The KRA has not specified an implementation date, but there are indications that they may begin piloting eTIMS as early as this February.
eTIMS may offer multiple integration options, including mobile phones, personal computers, tablets, POS, online solutions, ERP systems, and virtual control units.
To register for eTIMS, VAT-registered taxpayers will need to fill out and submit the eTIMS acknowledgment form, as provided on the KRA website. Further guidance from KRA will be provided later.
Taxpayers already using TIMS will continue to use their current ETR machines. KRA will inform them when to fully switch to eTIMS. The implementation will be done in phases, with ongoing communication between KRA and taxpayers throughout the process.