The Kenya Revenue Authority (KRA) has given businesses until August 2022 to install new electronic tax registers connected to its systems for monitoring of daily sales, popularly known as ETR machines.
The law requires all businesses with an annual turnover of at least Ksh5 million to have ETR machines for easy monitoring of daily sales and tax returns.
“Kenya Revenue Authority wishes to inform the public that the rollout of the Electronic Tax Invoice pursuant to the provisions of the Value-Added Tax (Electronic Tax Invoice) Regulations 2020 shall commence on August 1, 2022,” said KRA in a statement.
Initially, businesses had up to September 2021 to comply with the directive which was issued in October 2020, even as the taxman tightens surveillance on tax cheats.
“All VAT registered taxpayers shall thereafter be required to comply with the requirements of the regulations on implementation of the Electronic Tax Invoice within a period of 12 months from the date of the rollout. Where a person is unable to comply within the timelines, they shall apply to the Commissioner Domestic Taxes for extension of time to comply which shall not exceed six months as provided for in the regulations,” added KRA.
Businesses will also be required to seek permission to conduct business outside the specified one using the machines, or risk being locked out.