5 Must-Have Features in Business Software for Electronic Tax Invoice in Kenya

Electronic tax invoice, commonly referred to as e-invoicing, is a system in which all the invoices are electronically validated, signed, and details are transmitted to the tax portal on a near to real-time basis.

Under the new e-invoicing system, business/accounting software used by businesses can be integrated with new electronic tax registers (ETRs), known as a control unit, which validates the accuracy of the invoice, electronically signs the invoice, and then transmits the details to tax portal.

With the implementation of e-invoicing, the businesses need to print control unit invoice no, QR code and control unit serial number before issuing it to the buyer. With the new mandate of e-invoicing, using the right e-invoicing solution will help you to adapt to the new system easily without needing to change the invoicing process that you currently follow.

Today, businesses use different accounting/business management software and invoicing utilities to generate an invoice. However, it is crucial for businesses to evaluate if the software or utilities that they use is equipped with the right technology. With that in focus, we are listing 5 things that you need to consider while evaluating an e-invoice solution.

Seamless integration with ETR Machines

With the concept of e-invoicing, an invoice remains valid only if it is authenticated by the control unit and printed with the QR code and control unit invoice and serial number. For this to happen, first, you need to share the e-invoice details in the prescribed format to the control unit (ETR). Secondly, receive the details authenticated by the control unit. Later, you need to print QR code, control unit invoice number and control serial number on the invoices before issuing it to the buyer.

Guess, you can imagine the impact that would have on the invoicing process. A right e-invoicing solution with the capability to integrate with ETR (Type C) will make it easier and simple. 

Instantly generates compliant e-invoice with QR code and other mandatory details

Generating e-invoices with QR code, control unit invoice number and control serial number on the invoices is a primary requirement of the new TIMS. Given invoicing is every day’s activity, it becomes  important for businesses to use a business management software that instantly generates  compliant e-invoices. In simple words the software should be able to absorb the complexities by sending the details to control unit, receive the authenticated details and automatically print QR code, control unit invoice no. etc. on the invoices instantly.

TallyPrime, a complete business management supports e-invoicing requirement ensuring each invoice is fully compliant. The invoices generated from TallyPrime includes the following details to comply with the guidelines.

• A quick response (QR) code
• A list of goods and services
• Measurement units
• The number of goods and services
• The VAT rate charged
• A unique control unit invoice number
• Control unit serial number
• Suppliers PIN
• Buyers PIN

Supports debit and credit note interlinking

When a customer pays you for goods or services, your ETR records VAT for that sale. However, sometimes, a customer might return some or all the goods or cancel your service delivery.

In that case, you will issue the buyer a credit note amounting to the VAT of the returned goods or canceled services. As buyer, you will record a debit for purchase return. With new TIMS, all the debit note and credit notes should be linked with original invoice number. Your business management software should be able to support debit and credit note interlinking.

TallyPrime simplifies this process by creating a thread of notes linking all these back and forth in compliance with KRA’s VAT debit and credit guidelines. 

VAT compliance

Non-compliance with VAT and other taxes is a serious offense that attracts hefty legal and financial penalties from the government. That’s why your business needs to utilize a software that supports VAT compliance and makes it easy to adhere to it.

With TallyPrime, you don't have to experience the hassle. From e-invoicing to archiving to transaction clustering and filing your returns, you’ll have all your compliance activities handled for you.

Accurate return filing

Filing accurate VAT return is one of the key compliance requirements of every VAT registered business. It becomes an easy task if you are a business management software that auto-generates the VAT returns.

TallyPrime has built-in error detection and correction that ensures your VAT returns are accurate. It detect the errors or incomplete details in VAT return and assists to correct those so that VAT returns are 100% accurate.

TallyPrime’s pre-designed VAT return templates are compatible with the new Tax Invoice Management System (TIMS) system. So, with just a few clicks, your tax details will be seamlessly populated on KRA’s e-return forms.

Read More: 

• FAQs on Electronic Tax Invoice Management System in Kenya
• What is the Difference Between an Electronic Tax Register (ETR) and an Electronic Tax Invoice?