The deadline for all firms that collect VAT to adopt new machines has been extended to November 30.
According to KRA, this is to enable them successfully transact before the new deadline as a number of taxpayers are still acquiring and integrating the ETR devices with their invoicing systems.
This is the second extension after the first deadline for July 31 was pushed to September 30.
Taxpayers had been given 12 months to put in place and comply with the requirement as from August 1, 2021 to July 31, 2022.
The transition will see the firms transition to the new Tax Invoice Management System (TIMS), which is expected to improve tax compliance in the country.
It is expected to minimise fiscal fraud and increase tax revenue per the VAT Regulations, 2020. KRA also expects to increase VAT collections to 35 per cent of total tax revenue through the new system.
KRA said the new system will help the aim to plug loopholes in the trader system and the verification of the validity of Tax invoice by KRA officers.
It will also foster fair business environment, simplify VAT return filling, automate activation of tax registers and make the VAT refunds faster.
Under the new system all invoices will be approved when raised through the new platform which will relay the transactions in real-time via the internet in the respective customers’ and purchasers’ ledgers.
As of August 22, KRA had approved a total of 17 suppliers and 13 manufacturers.
