06/12/2023
Tukiendelea kusema ooohh hii serikali msisahau hii kuanzia Jan 2024.....book keeper need to be aware ...
Kindly take note of the attached notice from KRA which is effective from 1st January 2024.
Ensure you get invoice/receipt generated through eTIMS in order for any business expense to be allowable.
Suppliers who are not vatable at the moment will have to register with eTIMS in order for their invoices to be valid and to be claimed as an allowable expense. This relates to all expenses e.g. Newspapers and periodicals, Misc expenses from local Kiosks like Milk and bread, Sub- Contracted casual wages etc. In short just a petty cash voucher / Cash sale receipt as a supporting to an expense will not be allowed.
Several Businesses/corporates offer housing to their employees. i.e. Pay house rent on behalf of their employees (charged as a benefit to the employee through their payroll) and claim this as allowable business expense. In such cases, ensure that the landlord provides invoices generated through eTIMS, as in many cases such landlords are not registered for VAT.
With reference to point no 3 above, Landlords who own residential properties and pay monthly rental income tax (MRI) may be required to register under the new eTIMS in order to issue a valid invoice to be claimed as allowable expense.
Businesses, Partnerships, Proprietorships, Consultants, Doctors and any other professionals who do not fall under the VAT threshold or supply non-vatable services may be required to register on eTIMS. This is for their invoices to be valid for their customers/clients to claim as an allowable business expense.