Traders in last-minute rush to beat electronic tax registers deadline

With just over one day to go before Sunday deadline of the new Internet-enabled electronic tax registers (ETRs) traders are racing to engage suppliers ahead to comply with the law.

KRA confirmed on Friday, traders will be required to show proof of order and payment for the new Internet-enabled electronic tax registers (ETRs) ahead of the Sunday deadline, as the taxman seeks a way around the supply hitches.

"Kenya Revenue Authority (KRA) would like to remind the public and all VAT registered taxpayers that the deadline of the transition from the old Electronic Tax Registers (ETRs) to the upgraded ETRs is 31st July 2022. KRA appreciates taxpayers who have complied this far and those who are making efforts to comply," said KRA on Friday. 

Suppliers on Saturday said they are ready to help guide traders comply with the law ahead of the deadline.

Billing software

According to Charles Mwaura, the chief executive officer of Wisepower Technologies, one of the KRA-approved suppliers with offices in Nairobi, Naivasha and other towns, they have opened till Sunday to enable traders comply.

“We are charging from Sh45,000 to Sh120,000 for the ETRs and about Sh80,000 for the billing software. We will be open till Sunday to enable our customers comply,” said Mr Mwaura in an interview from his office along Rhapta Road in Westlands, Nairobi where traders could be seen trooping to beat the KRA deadline.

The new ETR will be connected through the Internet to the KRA’s systems, allowing it to monitor all transactions in the traders’ point of sale and invoicing systems.

Besides the upgraded ETR software, traders are supposed to procure software for the devices.

“The idea for KRA is to use technology to track sales on a real-time basis. So when someone makes a sale they will know and the buyers’ iTax page will also be updated,” said Nikhil Hira, a tax expert and business partner at Kody Africa LLP.

Proof of compliance

KRA said on Friday for traders who are in the process of acquiring upgraded ETRs, the proof of compliance shall include evidence that they have placed an order and made payment to the approved ETR Supplier. 

"The Supplier shall issue the trader with a letter providing details on the order placed and payment thereof. Traders are required to email a copy of the letter to [email protected]," said KRA.

"Similarly, Suppliers are to ensure that traders are issued with formal letters providing details on order placed and payment thereof."

In addition, KRA said all VAT registered taxpayers who have already acquired the upgraded ETR devices must finalise the process of activation and integration by 31st August 2022.