These regulations are applicable to companies registered under VAT Act, 2013 – Section 34. The regulations are focused to digitize and track sales in real time using an electronic tax invoice. Transmitting to KRA’s system the tax invoice data and the end of day summary of the respective day’s data in the manner specified by the Commissioner “register” means an electronic tax invoicing or receipting system that is maintained and used in accordance with these Regulations [ COMMENCEMENT: September, 2020 – August 2021 ].
USE OF REGISTER:
The user of the register shall ensure the following;
a) each sale is recorded with the use of the register
b) an invoice is generated in respect of each sale
c) each invoice generated in respect of each sale shall contain the information specified in
regulation 7.
The user of the register shall —
a) transmit or deliver the invoice generated with respect to purchase to the purchaser; and
a) transmit or deliver the invoice details to the Commissioner in accordance with regulation 9(a).
EXCLUSIVE USE OF REGISTER
A register shall be exclusively used by the registered user of that register
AVAILABILITY OF THE REGISTER
The user of a register shall ensure continuity of operations of the register if there is an interruption of power supply.
INABILITY TO USE REGISTER
Where a user of a register cannot use the register for any reason, the user shall—
a) notify the Commissioner in writing within twenty-four hours of the user’s inability to use the register; and
b) record sales using any other means as may be specified by the Commissioner.
RESUMPTION OF USE
Once a user of a register is able to use the register, the user should transmit or deliver the invoice details to the Commissioner in accordance with regulation 9 (a).
OBLIGATIONS OF THE USER OF THE REGISTER
A user of the register shall —
a) ensure availability of the register at the point of sale
b) facilitate the inspection of the register by an authorized officer
c) ensure the register is regularly serviced to ensure the register’s proper functioning at all times
d) comply with such other requirements as may be specified by the Commissioner
SERVICING THE REGISTER
The user should keep and maintain a register ledger in which a record of the servicing of the register shall be entered and which shall contain —
a) the name and address of the person servicing the register
b) an entry for each time the register is serviced, describing the servicing and shall be signed by the person performing the service
DISCONTINUED USE OF REGISTER
Where a user of a register intends to discontinue the use of a register due to –
a) closure of business
b) cessation to supply vatable supplies
c) any other reason that user shall notify the Commissioner, in writing, of the intended discontinuation within thirty days prior to the
discontinuation
Where a notification has been made under paragraph (2), the Commissioner may, by notice in writing and within thirty days, retire the register.
TAX INVOICE, CREDIT NOTES AND, DEBIT NOTES
A tax invoices, credit notes and debit notes generated from a register should contain —
a) the pin of the registered user of a register
b) the time and date of issuance
c) the serial number of the invoice
d) the buyer’s PIN
e) the total gross amount
f) the total tax amount
g) the item code of supplies (for exempt, zero-rated and other rate supplies) as provided by the Commissioner in accordance with the Act
h) a brief description of goods and services
i) the quantity of supply
j) the unit of measure
k) the tax rate charged
l) he unique register identifier
m) the unique invoice identifier
n) a quick response (QR) code; and any other requirement as may be specified by the Commissioner.
ISSUE OF CREDIT & DEBIT NOTES
Where a user of a register issues a credit note or debit note, the credit note or debit note should indicate;
a) the PIN and
b) invoice number to which the supply relates.
OFFENCE
A person commits an offence if that person
a) fails to comply with any of the provisions of these Regulations; or
b) tampers, manipulates or interferes with the proper functioning of the register
PENALTY
A person convicted of an offence under this Act for which no other penalty is provided shall be liable to a fine not exceeding one million shillings, or to imprisonment for a term not exceeding three years, or to both.
