The Kenya Revenue Authority (KRA) has announced the successful integration of the Electronic Tax Invoice Management System (eTIMS) with the Integrated Financial Management Information System (IFMIS), introducing new requirements for suppliers doing business with government entities.

🇰🇪 Breaking It Down

In a notice on Monday, August 31, KRA said the integration was undertaken in collaboration with the National Treasury and is aimed at enhancing transparency and accountability in government transactions.

At the same time, the move will also improve tax compliance for businesses transacting with the government.

"Kenya Revenue Authority (KRA), in collaboration with the National Treasury, informs the public of the successful implementation of the integration between the Electronic Tax Invoice Management System (eTIMS) and the Integrated Financial Management Information System (IFMIS)," KRA stated.

📌 What You Need to Know

The new system requires suppliers to generate valid eTIMS invoices for all goods and services supplied to government agencies before submitting invoices for payment through IFMIS.

The authority, therefore, directed suppliers to update the details in invoices submitted to government agencies so that they correspond to the invoices generated and recorded in eTIMS.

The tax authority warned that invoice discrepancies could affect payment processing, as the integrated system will facilitate automated validation of tax invoices.

"All suppliers engaging in business with Government entities are hereby advised to  generate valid eTIMS invoices for all supplies before submission for paymen t processing through IFMIS," the authority said.

"The details of invoices submitted to Government entities must correspond precisely with the invoices generated and recorded in eTIMS," it added.

The taxman further urged government suppliers to regularly verify their tax compliance status and ensure their tax records and information remain accurate and up to date.

📰 Source: Kenyans.co.ke