Streamlining VAT Compliance: Kenya Revenue Authority’s Initiative For Enhanced Tax Filing

The Kenya Revenue Authority (KRA) has taken a significant step towards modernizing and simplifying the Value Added Tax (VAT) return filing process.

Starting January 2024, VAT-registered taxpayers will experience a streamlined process as the KRA implements pre-filled VAT returns. This measure is aimed at improving the overall taxpayer experience by reducing the time and effort required to comply with tax obligations.

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Key Changes to Note:

• Pre-filled Returns: Taxpayers will receive VAT returns that have been pre-filled with information already available to the KRA, minimizing the need for manual entry and reducing errors.
• Mandatory Validation: Claims for input VAT must be validated through the Tax Invoice Management System (TIMS) or eTIMS, or aligned with customs import declarations. Unvalidated claims will not be accepted.
• Electronic Invoicing: Issuance of electronic tax invoices is now mandatory. These invoices must include a QR code or control unit number, which can be checked for validity on the iTax Portal.
• Accuracy Confirmation: Since the pre-filled VAT return is based on a self-assessment system, taxpayers are responsible for confirming the accuracy of the information before submission.
• Guide Availability: A comprehensive step-by-step guide on how to file the auto-populated VAT return is accessible on the KRA website.

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The KRA emphasizes the importance of compliance with these new procedures and offers robust support through its Contact Centre and online resources. Taxpayers are encouraged to take advantage of the Tax Amnesty Programme which provides a 100% waiver on accrued interest and penalties, thus incentivizing compliance and easing the financial burden for those with outstanding obligations.

Taxpayer Support and Resources:

To assist taxpayers in adapting to these changes, the KRA has established support channels. Queries can be addressed through the KRA Contact Centre, with phone and email options available for convenience. Additionally, the official KRA website serves as a hub for information, updates, and the step-by-step filing guide.

Implications for Taxpayers:

This initiative represents KRA’s commitment to tax administration efficiency and reflects the broader goals of Kenya’s Vision 2030 to leverage technology in public service. Taxpayers are advised to familiarize themselves with the new system to ensure seamless compliance. The move towards digitization not only enhances efficiency but also transparency in tax collection and administration.

The simplification of the VAT Return Filing by the Kenya Revenue Authority is a welcome development for VAT-registered taxpayers. It is a testament to KRA’s dedication to improving taxpayer services and is expected to lead to higher compliance rates. By staying informed and utilizing the available resources, taxpayers can navigate these changes effectively and continue contributing to Kenya’s economic growth.

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