Taxpayers have up to 31^st December 2024 to review and provide feedback on any discrepancies. After this period, any debit balances remaining shall be transferred to the iTax General Ledger and demand notices issued

Adjustments include -

1. Updating payments not captured or captured late;
2. Return correction;
3. Rectifying self-assessment capturing errors;
4. Handling credits migrated; and
5. Reconciling un-actioned assessments or refunds.

Final VAT credit balances in the Legacy System have not been migrated. This is because taxpayers were given a chance to claim these credits in their first iTax return or request refunds through the specified processes.

Refunds processed but not updated in the Legacy ledger were adjusted through debit entries. Any discrepancies in the adjustments will be reversed through a workflow that shall be provided to the taxpayers.

The documents to aid in reconciliation will depend on the reconciliation sought and may vary from taxpayer to taxpayer. The required documents will therefore be agreed upon with the TSO once the taxpayer reports the variances.

Returns filed in both systems during the transition period have been reconciled to determine the correct last return in the Legacy System. Transactions filed in Legacy System after a taxpayer had filed the first iTax return were disregarded during migration.

Excess waivers issued without corresponding interest and penalties (I&P) were adjusted through debit contra entries to correct the balance. Waivers higher than I&P amounts were similarly adjusted to prevent discrepancies.

Missing payments made via ITMS and CCRS towards Legacy System assessments were factored in the respective periods during validation and migration of the balances.

For missing payments made through direct remittance to Central Bank of Kenya (direct credits), taxpayers should submit a reconciliation request together with supporting documents for the missing payments (RTGS payment slips/Bank advice slips) for validation and capturing

Unused migrated credit vouchers were cancelled for fresh migration action (payment or utilization). For utilized credits, adjustments were made to determine the correct balance to be migrated.

Taxpayers can request adjustments if they believe losses were not carried forward within a Legacy period. Taxpayers should provide supporting documents and explanations for review and validation by authorized officers

Yes, taxpayers can seek a review of the disallowed credits claimed in iTax returns compared to Legacy System credits. Correct credits as computed from the Legacy System will be migrated after validation and review.

Excess payments were utilized towards specific VAT liabilities (VAT 57 and VAT 77). Any remaining excess amount was adjusted to reflect the final balance in the Legacy System.

For any clarification on the migrated balances, taxpayers are advised to reach out to their nearest KRA Office or contact us through email address: dtdlegacysupport@kra.go.ke

The auto populated VAT return is a simplified VAT filing process where the Kenya Revenue Authority (KRA) pre-fills VAT returns with tax information from iTax, TIMS, eTIMS and the customs business systems.

VAT-registered taxpayers are required to:

• Issue/demand to be issued with electronic tax invoices.
• Transmit invoice details to KRA through TIMS/eTIMS as prescribed by law.
• Verify and confirm the accuracy of their auto populated VAT returns.

Yes, all VAT-registered taxpayers must continue using TIMS/eTIMS to issue electronic tax invoices and transmit details to KRA as required by law.

Both TIMS/ETIMS compliant invoices have a QR Code which can be verified by a QR reader. You can also access the invoice checker on the iTax page

The invoice checker has additional fields to include the buyer details which are crucial in ascertaining if the correct invoice details were transmitted and allow corrective action to be taken early enough within the tax period.

For sales issued through eTIMS the issue will mostly arise from transmission challenges. To ensure seamless and timely transmission of invoices, always keep your device consistently connected to the internet.

For sales through TIMS where the device is connected to the internet yet it is still not transmitting invoices then contact your TIMS Device supplier for assistance to resolve the configuration issue.

The return allows a taxpayer to increase the sales value upwards for any missing sales in the return arising from sales issued outside TIMS/eTIMs or sales not transmitted by the time of filing the VAT return etc.

No. Sales in the VAT return are prepopulated based on the invoice date and not the transmission date. Hence, a taxpayer needs to declare all their total sales in the VAT return whether transmitted or not by the date of filing the return.

The sales including the respective credit notes where applicable to customers not registered for VAT will be captured under CSV for invoices without PIN and Non VAT PINs.

Yes, as long as the invoice was transmitted to KRA and the customer PIN is VAT Registered.
All sales to non-VAT registered customers or customers who did not provide their PIN to the seller should be declared under lump sum sales field in the respective sales sheets