In a bid to provide the VAT-registered taxpayer with a smoother experience during the process of compliance, the Kenya Revenue Authority (KRA) has introduced the pre-filled VAT forms.
The data which is used to populate these pre-filled forms are collected through the tax invoice management system (TIMS) and electronic tax invoice management system (eTIMS) when the transactions first occur.
This is why all persons engaged in business, regardless of VAT obligation who have not yet been on-boarded to TIMS are required by KRA to be registered with eTIMS by the 31st of March 2024. Only TIMS or eTIMS generated invoices will be recognised going forward.
This will improve the overall health of the system as it will lock out fraudulent transactions which the taxman cannot track and fold into the system.
The method of pre-filled forms will significantly decrease the margin of human error which may occur during data entry. This assists in eliminating inconsistencies between suppliers and purchasers. As you can imagine, this will save time for all parties involved in the filing process.
While the initial rollout of pre-filled VAT forms faced technical challenges delaying its commencement to February 2024, the potential benefits it offers in terms of convenience and compliance are substantial. With continued efforts to address any remaining glitches, taxpayers can look forward to a more straightforward and efficient filing process in the near future.
