Uber drivers in Kenya will now issue electronic tax invoices to passengers for every ride, following new compliance measures introduced by the Kenya Revenue Authority (KRA).
In a notice sent to drivers, the transportation company announced that it will begin issuing Electronic Tax Invoice Management System (eTIMS)-compliant invoices on behalf of its drivers.
The company stated that the move ensures compliance with the law while maintaining an easy and seamless process for drivers.
“As part of the Kenya Revenue Authority (KRA)’s efforts to digitize and streamline tax compliance, all persons providing goods or services, including transportation, are now required to issue e-TIMS-compliant invoices to their customers. This includes drivers who offer trips via platforms like Uber,” read the notice in part.
“We understand that issuing tax invoices after every trip may feel challenging, especially due to the technical and time-related constraints. That’s why, with the KRA’s approval, Uber will use its technology to help drivers meet this legal requirement by issuing the e-TIMS-compliant invoices on your behalf.”
Also Read: KRA Announces 4 Key Updates to eTIMS Portal
Uber Kenya to Issue KRA eTIMS Invoices for Every Ride
Uber directed all drivers to submit their KRA PIN certificates via the driver app and accept a consent form to remain active on the platform.
“To activate this support, we kindly request two quick steps from you: Read and accept the consent form – This authorizes Uber to issue e-TIMS invoices on your behalf. Share your KRA PIN certificate via the driver app starting today – This is needed to register your profile on the e-TIMS platform,” Uber notified drivers.
Under the VAT (Electronic Tax Invoice) Regulations, 2020, all persons offering goods or services, including transport, must issue invoices through the eTIMS.
This means Uber drivers must generate an invoice for every trip.
Also Read: KRA Rolls Out eTIMS System for Petrol Stations
KRA eTIMS Targets Revenue Leakages, Eases Burden on Small Businesses
KRA introduced eTIMS in 2023 as part of efforts to seal revenue leakages by ensuring that all business expense claims are backed by actual receipts.
The tax agency previously reported that only 120,000 taxpayers with business income had signed up for eTIMS by June last year, representing just 18.1 per cent of the 663,000 firms in its records.
eTIMS requires businesses to submit receipts or invoices as proof of expenses, enabling KRA to monitor transactions in near real-time and flag discrepancies.
However, tax consultants have noted that the slow uptake is largely due to smaller businesses lacking the technical capacity and knowledge to integrate with the system.
To ease this burden, Parliament approved an exemption in December for businesses with annual sales below Ksh5 million from mandatory registration on eTIMS.
The change also allows larger firms purchasing goods and services from smaller businesses to generate electronic invoices on their behalf, a move expected to prevent large firms from inflating sales figures while underreporting profits to evade taxes.
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