TAX ALERT: KRA Launches ‘eTIMS Lite’ Platform for Non-VAT Registered

Dear Valued Clients,
We bring to your attention a crucial Tax Alert regarding recent developments in the Kenyan tax landscape. The Kenya Revenue Authority (KRA) has officially launched the ‘eTIMS Lite’ platform, specifically designed for non-VAT registered taxpayers.
Key Highlights:

1. Introduction of eTIMS Lite: The KRA has introduced the ‘eTIMS Lite’ platform as a user-friendly solution for non-VAT registered taxpayers to electronically generate and submit their invoices.
2. User-Friendly Interface: With an easy-to-use interface, businesses can now raise eTIMS invoices conveniently through the eCitizen platform at ecitizen.kra.go.ke or by dialing *222# for the USSD option.
3. Challenges Addressed: In response to challenges faced by small-scale entrepreneurs and the informal sector, such as limited access to smartphones, computers, and poor internet connectivity, the eTIMS Lite platform aims to streamline the invoicing process.
4. Compliance Deadline Reminder: Despite the launch of eTIMS Lite, the compliance deadline remains unchanged – March 31, 2024. Taxpayers are reminded to capture on eTIMS all invoices and receipts issued manually from January 1, 2024, up to the date of onboarding.
5. Our Expert Opinion: We anticipate that the introduction of the eTIMS Lite platform will address some of the challenges faced by small-scale taxpayers, which have previously hindered the adoption and acceptance of eTIMS. However, the envisioned exemption for taxpayers with an annual revenue below KES 5 million, as proposed in the Tax Procedures (Electronic Tax Invoice) Regulations 2023, appears to be currently elusive.

Crucially, the compliance deadline of March 31, 2024, remains unchanged. Upon onboarding, taxpayers are expected to record on eTIMS all invoices and receipts manually issued from January 1, 2024, until the date of onboarding.

Should you have specific inquiries regarding the implications of the eTIMS Lite launch for your business, please do not hesitate to contact us.
For Further Information or Assistance, Please Contact:
The Management – Seal Associates:

Godfrey Ndegwa
• Phone: +254713281299
• Email: hello@sealassociates.com

Paul Githuku
• Phone: +254784653085
• Email: hello@sealassociates.com

Office: 1st Floor, Woodvale Place, Woodvale Grove Rd, Westlands,
Email: hello@sealassociates.com
Website: https://sealassociates.com/
Stay informed, stay compliant.