Manufacturers and Business people in the country will have to part with over Ksh120,000 to install upgraded Electronic Tax Register(ETR) and a billing software by July 31.
Failure to install an ETR gadget as per the required timeline, one faces a jail term of 3 years or a fine of Kshs1 million according to the chief manager in charge of Tax Invoice Management System (TIMS) operations, Hakamba Wangwe.
The Kenya Revenue Authority requires businesses to install the gadget so that the taxman can have real time access to their invoices. KRA will be able to track invoice transactions and determine the tax fee that each business should be charged.
Once a trader makes a sale, KRA will be able to tell and the information will also be updated on the iTax platform of the buyer.
“If a VAT registered taxpayer does not comply within the specified period then we invoke section 53 of the VAT Act which says that you will either be fined Sh1 million or three years imprisonment or both if you don’t comply within the specified timeline,” said wangwe
KRA has approved 16 suppliers to supply the ETR gadgets, noting that there are enough stocks in the country. The business is currently doing well as firms rush to beat the KRA deadline
“We are selling from Sh45,000 to Sh120,000 for the ETRs and about Sh80,000 for the billing software,” Charles Mwaura CEO of Wisepower Technologies Ltd, one of the KRA-approved suppliers, said.
The ETRs are internet enabled and will be connected to the KRA systems. The gadgets will replace the manual register that is currently being used.
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