This archive report was first published on 6 July 2021.
On June 22, 2021, a press release circulated, claiming that the Kenya Revenue Authority (KRA) had issued revised electronic tax register specifications. The document, which was unsigned, stated that KRA had informed all authorized manufacturers and suppliers of fiscal ETR devices to ensure that all ETR devices could automatically send sales information to the KRA iTax system through the Tax Invoice Management System (TIMS).
The revised ETR technical specifications were allegedly accessible on the KRA website. According to the document, the new model was expected to streamline VAT revenue collection in two ways. Firstly, it would provide KRA with actionable information against tax cheats, as TIMS would require all ETR machines to send the taxman detailed information about each transaction, including the seller's and buyer's details, the nature of the supply, and the amount involved.
Secondly, the rollout was expected to enable automated population of taxpayers' VAT returns, reducing filing errors, saving time and complexity, and making it easier for businesspeople to file their own VAT returns without the need for an intermediary tax agent.
However, a day later, the Kenya Revenue Authority flagged the press release as fake and warned the public against its content.
