The Kenya Revenue Authority (KRA) has responded to concerns from high-volume businesses by relaxing the electronic tax invoice mandate. This adjustment allows struggling businesses to tailor-make their systems for tax data recording, addressing challenges posed by the existing electronic invoice tax management system (eTIMS). Notably, exemptions are introduced for alternative automated methods, offering flexibility to entities like supermarkets, which can now explore systems capturing essential tax data without hindering transactions. Additionally, businesses with a turnover below Sh5 million are no longer obligated to use e-invoices, reflecting a recognition of diverse needs and potentially fostering a more collaborative tax environment in Kenya.
This shift in approach signifies a significant departure for the KRA, acknowledging the varied landscape of businesses in Kenya. It remains to be seen whether businesses will embrace the newfound flexibility, opting for a DIY approach, or stick with the familiar e-Tims platform. The impact of this change on tax compliance in Kenya will unfold over time, revealing whether it ushers in a new era of adaptability and collaboration.