The VAT (Electronic Tax Invoice) Regulations, 2020 introduced the Electronic Tax Invoices requirements effective 1st August 2021. All VAT-registered taxpayers must comply with the standards and maintain an Electronic Tax Invoicing or receipting system (VAT register).

Kenya Revenue Authority maintains that businesses will be required to acquire and implement the new Internet-enabled ETRs by July 31, 2022. Attached is a document explaining the new system and list of approved suppliers.

The implementation of the electronic tax invoice facilitated by Tax Invoice Management System (TIMS). TIMS is an upgraded version of the Electronic Tax Register (ETR) that facilitates electronic tax invoice management through standardization, validation and transmission of invoices to KRA on a real time basis.

Through the ETR/Electronic Signature Device (ESD) seamless integration with iTax, taxpayers will be able to;

• Verify the validity of tax invoices;
• Confirm if computation (tax rate, taxable value, total tax and total gross amount) are correct;
• Issue control unit invoice number that can be verified from the iTax;
• Check validity of PIN provided; 
• Relay the information captured to TIMS for storage on a real time basis; 
• Enjoy easier filing of pre-populate VAT returns loaded with sales and purchases particulars.