KRA Extends Deadline For Switch To New ETRs

September 27, 2022

The Kenya Revenue Authority(KRA) has once again extended the compliance deadline to switch to the new Tax Invoice Management System (TIMS).

The first deadline had been set for July 31 before it was extended to September 30 following concerns over a shortage of the new Internet-enabled Electronic Tax Registers (ETRs).

The Taxman has now extended the deadline to November 30, providing more time for VAT registered taxpayers to integrate the ETR devices with their invoicing systems.

“Having noted that a number of taxpayers are still in the process of acquiring and integrating the ETR devices with their invoicing systems, KRA further advises that an administrative decision has been taken to provide additional time until 30th November 2022, to allow the taxpayers to complete this process,” KRA said.

The Commissioner for Domestic Taxes at the same time commended taxpayers who have complied and those who are making efforts to comply.

TIMS aims to increase VAT compliance, minimize VAT fraud and increase tax revenue.

All VAT registered taxpayers are required to have in place the new ETRs to enable them generate and electronically transmit their validated tax invoices to KRA in compliance with the VAT (Electronic Tax Invoice) Regulations, 2020.

The new registers will help the taxman receive sales and invoice data daily.

Manufacturers and traders who fail to upgrade to ETRs risk a fine of Sh1 million or a jail term of three years.

A list of approved suppliers of the new ETRs can be accessed from the KRA Website.

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