Alex Bosire
8.5K posts
Alex Bosire
@AlexBosire
Obstetrician, persisting till i succeed.Liverpool fan... Director, Velvet health
Russia has delivered the first 5th Gen Su-57E Stealth Multirole Fighter to Algeria. We should see an official confirmation or some visual proof by November.
REVERSE INVOICING FOR TAX COMPLIANCE What is Reverse Invoicing? It is a tax compliance process where the buyer, instead of the supplier, generates the tax invoice for a transaction. -This is required when dealing with suppliers who do not issue tax invoices, often because they are not VAT-registered or they are just very informal (i.e., their turnover is below the VAT registration threshold of Kshs 5 million in Kenya). -In Kenya, the concept of reverse invoicing was introduced under the Finance Act, 2023, and the Tax Procedures (Amendment) Act, 2023, to ensure that all transactions are recorded digitally for tax purposes through eTIMS(Electronic Tax Invoice Management System). This was to align with the provisions of Sec 15 (1) ITA that demands ; for any expense to be deductible for income tax purposes, the supporting invoice must be generated through eTIMS . How Reverse Invoicing Works in Kenya Applicable Scenario - If a business buys goods or get services from a small supplier (turnover ≤ Kshs 5M) who is not VAT-registered and does not issue an eTIMS invoice becasue of the nature of their supply and demands by the law . - However, the buyer needs an eTIMS invoice to claim the expense for income tax purposes. Solution: -The Buyer should generates a reverse Invoice -Instead of relying on the supplier for an invoice, the buyer creates the invoice on behalf of the supplier within eTIMS. -This ensures compliance with Section 15 of the Income Tax Act, which now requires all deductible expenses to have an eTIMS invoice. Step-by-Step Process of Generating a Reverse Invoice on eTIMS ✅ Step 1: Log in to eCitizen and access KRA eTIMS ✅ Step 2: Navigate to the Invoicing Module ✅ Step 3: Select "Business to Customer" (B2C) Invoice Type ✅ Step 4: Enter the supplier’s details (who is not VAT-registered) ✅ Step 5: Provide details of the goods/services purchased ✅ Step 6: Enter the correct tax details applicable to the transaction ✅ Step 7: Generate and save the reverse invoice Reverse Invoicing is Important Becasue it ensures that the buyer have valid tax invoices for income tax deductibility. It enables the business to Capture all transactions with small suppliers preventing loss of deductible expenses in businesses working with non-VAT-registered suppliers. #Tax #eTIMS #TaxationUpdates #TaxPlanning #Taxcompliance
Maraga is cooking even on LinkedIn It can be done guys
This life… There is something else I wanted to caution you about, my young friends. In this era of cell phone cameras, you like to go out and record live situations and unfolding violent events involving civilians or civilians and security officers. Avoid that. You are not protected like official journalists. Bad guys might want to eliminate witnesses and make you a target. At minimum, acknowledge that it is a risk you are taking. Exercise caution and discretion. ❤️🇰🇪🙏🏽