Kenya announces new draft electronic tax invoice regulations 2023 for consideration

published on 7 December 2023

The Kenya Revenue Authority (KRA) has announced new draft electronic tax invoice regulations. Through a public notice dated 23 November 2023, the commissioner general of the Kenya Revenue Authority has invited the public, professionals, and stakeholders to submit their input for consideration to be included in the final regulations as part of public participation requirements.

Key proposals

The widening of the scope of applicability for the electronic Tax Invoice Management System (e-TIMS) to include any person carrying on a business unless the person has been exempted
Increase in the uses of an electronic system by including compliance and notification obligations to the users of an electronic system
Inclusion of notification procedures to the commissioner for discontinued usage of the electronic system
Exemption of emoluments, imports, investment allowances, airline passenger ticketing, interest payments and non-resident persons from the requirements of having electronic tax invoices.

Other amendments include:

The insertion and definition of new terms such as Commissioner, Emoluments, Imports and Foreign Country
Empowerment of the commissioner to exempt or revoke an exemption from the requirements of the use of an electronic tax invoice by way of Gazette notice
Inclusion of penalties for uninstallation and change of the electronic device without notifying the commissioner

Should the draft regulations be passed, The Value Added Tax (Electronic Tax Invoice) Regulations, 2020 will be revoked.