The Kenya Revenue Authority (KRA) has announced a deadline of March 31, 2024, for the registration of businesses on the electronic Tax Invoice Management System (eTIMS).
As per the authority's records, as seen on Tuesday, March 26, only 186,566 businesses have been successfully onboarded onto the platform.
KRA also disclosed that the anticipated total number of businesses expected to utilise the system is 915,000. This leaves a significant number of 728,434 businesses yet to complete the registration process, prompting concerns about compliance.
In March, KRA unveiled the user-friendly system, to ease the transmission of tax invoices to the taxman, for both large and small businesses in the informal and formal sectors.
"Kenya Revenue Authority (KRA) would like to remind the public that all persons carrying on business including those in the Informal Sector and Small Businesses are required to electronically generate and transmit their invoices to KRA via the electronic Tax Invoice Management System (eTIMS)," KRA stated in March.
Non-Compliance Fines
Following the fast-approaching deadline, business owners have been warned of major non-compliance fines that will be imposed on those yet to be onboarded.
For businesses that fail to comply, KRA will consider it as tax evasion and fines will be imposed based on The Tax Procedures Act. The fines will amount to double the amount of tax evaded.
"If you don’t onboard it makes it difficult for the businesses to do business with you," eTIMS Chief Manager Hakamba Wangwe stated.
Personal Information to Remain Confidential
KRA has also declared that the invoicing system will not take up any confidential information from customers while generating the invoice.
Contrary to previous concerns of data breaches between service providers and their customers, the eTIMS online portal or USSD code does not request any personal identifiers of the customers.
The business owner will not be mandated to share the names, PINs or any personal information of their customers.
How to Onboard
There are three ways to onboard one's business on the system. These include dialling the USSD code *222# to acquire various services.
Treaders and business people can also use the eCitizen platform, through which all government services are paid. The simplified system can be accessed through the www.ecitizen.kra.go.ke.
Service-based businesses have been advised to use the eTims portal service. The taxman has provided a guide for people applying through the service portal, which can be accessed through their official website.
"Upon successful application, an authorized KRA officer will verify and approve the application," KRA notes.
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