The Kenya Revenue Authority (KRA) on Tuesday called upon businesses to transmit invoices through the Electronic Tax Invoice Management System (eTIMS).
In a notice, KRA informed all businesses even those, not registered for Value Added Tax (VAT) to generate and transmit their invoices through the system.
KRA specified that all businesses whose invoices will not be generated by the system shall not be deductible for tax purposes with effect from January 1, 2024.
"KRA will continue to support and facilitate all taxpayers to comply with the requirements of the law," read part of the notice.
Notably, the system allows businesses to transmit tax invoices, in real-time at their convenience.
The new directive is in line with the Finance Act 2023, passed to help the government collect more taxes.
KRA has set a target to collect Ksh2.768 trillion by the end of the Financial Year 2023/2024 and surpass the Ksh3 Trillion mark by the Financial Year 2024/2025.
" KRA is confident that it will achieve this target and enable the government to finance its Bottom-Up Economic Transformation Agenda (BETA) and sustain the country’s economy," read part of a statement from the authority.
To achieve this, the authority will implement both tax administrative measures and tax policy reforms.
In November 2022, President William Ruto set a target for KRA at Ksh4 trillion to get the country out of debt.
He called upon the taxman to improve the collection from 14 per cent to 25 per cent to get at par with others on the same economic level as Kenya.
The increased taxes in the country have pushed Kenyans to the edge with some living hand to mouth as the cost of living skyrockets.
