KRA – Hapakwetu

Kenya Revenue Authority Eases Electronic Tax Invoice Mandate for Business Flexibility

Hapakwetu — Fri, 12 Jan 2024 14:06:40 +0000

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.

New KRA Regulations Bring Relief to Kenyan Farmers and Small Businesses

Hapakwetu — Thu, 11 Jan 2024 14:39:00 +0000

Kenyan farmers and small businesses can now breathe easier, thanks to new regulations from the Kenya Revenue Authority (KRA). The recently unveiled Tax Procedures (Electronic Tax Invoice) Regulations, 2023, introduces a Sh5 million threshold, exempting most micro, small, and medium enterprises (MSMEs) from the obligation to produce electronic invoices for their sales. Nine transactions, including supplies by businesses with an annual turnover of less than Sh5 million, are excluded from the electronic tax invoice requirement. The KRA is addressing concerns about monitoring stock changes for small businesses, introducing a new system where transactions need to be shown rather than generating electronic invoices.

Despite these changes, starting this month, all businesses are required to produce an electronic tax invoice for every transaction to claim expenses during Income Tax filing. The National Treasury’s medium-term revenue plan proposes a five per cent withholding tax on farm produce sold to cooperative societies and agro-processors, aiming to expand the tax base and address perceived imbalances in tax contributions from the agricultural sector.

DigiTax and Statsspeak Partnership: Revolutionizing Tax Compliance in Kenya

Hapakwetu — Wed, 10 Jan 2024 10:56:00 +0000

DigiTax, an approved vendor by the Kenya Revenue Authority (KRA), has entered into a strategic partnership with Statsspeak Group Limited to revolutionize the onboarding process onto the Electronic Tax Invoice Management System (eTIMS). DigiTax has played a significant role in simplifying tax remittance, and the collaboration with Statsspeak aims to enhance market reach and user education.

Statsspeak’s role includes educating and onboarding various clients, from individuals to corporate entities, with the goal of ensuring compliance with eTIMS requirements. The partnership seeks to leverage technology and expertise to modernize tax compliance in Kenya, making the process more accessible and less burdensome for a wide range of taxpayers and fostering a growth-oriented business environment.