The Kenya Revenue Authority (KRA) plans to introduce a WhatsApp bot that will enable taxpayers to create electronic tax invoices through the widely used messaging application.
This initiative aims to enhance voluntary tax compliance, particularly among small traders.
KRA has indicated that this effort is designed to further streamline the tax invoicing process through the recently launched Electronic Tax Invoice Management System (eTIMS) and to improve tax compliance, especially for micro, small, and medium enterprises (MSMEs).
Hakamba Wangwe, KRA’s chief manager for eTIMS in the Domestic Taxes Department, said the program is currently undergoing testing and is expected to be implemented before the conclusion of the current financial year.
“The implication of this programme is the simplification of tax processes. With the bot, you will be able to generate a tax invoice as easily as you can send a message, a video, or a photo through WhatsApp,” she said.
This action follows numerous complaints from businesses, particularly small traders lacking technological expertise, regarding the intricacies of the newly implemented system, which has led many to avoid participation, thereby exacerbating non-compliance with tax obligations.
The system mandates that all business transactions be recorded with the tax authority through an electronically generated invoice, which automatically notifies KRA of any value-added or income tax liabilities incurred by the seller or service provider.
Under the new regulations, companies are required to attach all tax-deductible expenses to an eTIMS-generated tax invoice, compelling their suppliers and service providers to adhere to these requirements or risk losing business opportunities.
This comes a month after KRA announced plans to implement Artificial Intelligence (AI) to enhance its efforts in detecting tax evasion.
This initiative aims to analyze vast data sets, identify patterns indicative of tax fraud, and optimize resource allocation for more efficient revenue collection.
KRA Commissioner General Humphrey Wattanga emphasized that AI will enable real-time identification of suspicious activities, significantly improving detection capabilities compared to traditional methods.
This move comes as KRA struggles to meet its tax collection targets amid economic challenges, with AI expected to bolster compliance and transparency in the tax system.
