Zoho, a global technology company, launched its VAT and TIMS-compliant accounting software called Zoho Books.
It is comprehensive, cloud-based accounting software that helps businesses take care of finances, perform core accounting functions, track stocks, reconcile bank accounts and manage projects.
The software aims to help local businesses with the implementation of TIMS, smoothen the transition process and ensure VAT e-invoicing compliance under KRA.
According to Kenya's business guide, there are 1.56million Micro, Small & Medium Enterprises (MSMEs) businesses in the country.
As per the new Tax Invoice Management Systems (TIMS) regulation, all VAT-registered businesses are required to report each invoice and credit note to KRA in real time.
Businesses need to create electronic tax invoices with mandated fields, and format and push them to KRA.
The current VAT filing process requires businesses to manually fill in 11 sheets with transaction details in the VAT Return Form 3.
Speaking during the launch, Zoho Kenya country head Veerakumar Natarajan said Kenya serves as a key market in investing to create solutions that will help businesses in their digitalization journey.
“In June this year, we launched ZADE to reduce access barriers to technology for MSMEs and we have seen over 100 subscriptions,” Veerakumar said.
“We are launching Zoho Books as a continuation of our commitment to the market.”
Businesses will have an end-to-end accounting solution that will help create TIMS-compliant invoices and push them to KRA in just a few clicks.
The accounting software will also generate the VAT Return Form 3 that is filled in automatically, which can be used to file returns, therefore, simplifying tax compliance and saving time.
On September 25, 2020, the National Treasury CS Ukur Yatani gazetted the Value Added Tax (VAT) (Electronic Tax Invoice) Regulations, 2020 to usher in a new electronic tax invoice regime.
The regulations required VAT registered persons to comply within 12 months therefrom.
Although KRA issued a public notice citing its intention to roll out the new electronic tax invoice requirements commencing August last year, the notice provided a further twelve-month transition window.
To ensure integration of the tax register with the KRA system, every registered taxpayer is required to procure a control unit, a point-of-sale terminal, an Enterprise Resource Planning (ERP) system, or simply an ETR.
The tax man had given suppliers of ETR until mid-January to adopt the new ETR machines that are configured for real-time transmission of data to the taxman’s register.
It is banking on automated systems to beef up tax collections even as it targets to hit Sh6.8 trillion targets for the three financial years starting 2021 to 2023.
Head of product management, Zoho finance suite Prashant Ganti, said that they have gained deep expertise in continually solving accounting challenges, and tax and regulatory compliances for businesses worldwide.
“We have seen the growing adoption of Zoho Books in the region, having been in the market for the past 11 years. This has strengthened our resolve to provide Kenyan businesses with a one-stop solution to manage finances,” he said.
“Kenya is the first African country we have launched this solution in.”
Since the pandemic, the global edition of Zoho Books in Kenya has seen a 318 per cent increase in new customers and a nearly 100 per cent increase in revenue.
Zoho Books has a pricing plan that starts from as low as Sh509 to as high as Sh9,000 per organisation, per month, billed annually.
For the next six months, they will be getting a 40 per cent discount on all paid plans.
“Vendors for the new hardware ETR machines need to be certified by KRA. For a company like ours, KRA is not mandating software providers to certify with KRA. If a requirement presents itself that requires us to comply so as to provide TIMS compliance, we will do so,” Veerakumar said.
KRA has however issued a deadline to all firms that collect VAT to adopt and integrate new ETR machines by November 30.
