Electronic Tax Invoices

The VAT (Electronic Tax Invoices) Regulations, 2020.

Introduction

The Value Added Tax (Electronic Tax Invoices) Regulations, 2020 were gazetted through Legal Notice 189 of 2020 on 25th September 2020. The Value Added Tax (Electronic Tax Invoices) Regulations, 2020 amended The Value Added Tax Regulations, 2017 by deleting Regulation 9 which detailed the requirements of a valid tax invoice. Upon publication of the VAT Regulations in 2017, the Value Added Tax (Electronic Tax Registers) Regulations, 2004 were revoked hence there has been an ongoing debate about the legality or otherwise of use of electronic tax registers.

However, with the introduction of the new Electronic Tax Invoices Regulations, the doubt as to whether VAT registered taxpayers are obliged to issue electronic tax invoices has been eliminated. The latest Regulations are largely like the predecessor Electronic Tax Registers Regulations 2004; the main differences being a requirement for taxpayers to maintain a tax register that can transmit tax invoice data to the Kenya Revenue Authority (KRA) system.

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