The Kenya Revenue Authority (KRA) is digitizing tax compliance, a move that requires all individuals and businesses providing goods or services to issue e-TIMS-compliant invoices. This new regulation, mandated under the VAT (Electronic Tax Invoice) Regulations, 2023, directly affects drivers on platforms like Uber who provide transportation services.
Issuing a tax invoice after every trip can be challenging due to technical and time constraints. To simplify this process and ensure drivers remain compliant, Uber has received KRA approval to use its technology to issue e-TIMS-compliant invoices on behalf of its drivers. This partnership is a proactive step to help drivers navigate the new tax requirements smoothly.
What drivers need to do
To activate this support, Uber requires drivers to complete two simple steps:
- Read and accept the consent form: By accepting this, you authorize Uber to issue e-TIMS invoices to passengers and transmit the e-invoice data to the KRA on your behalf.
- Share KRA PIN certificate: This can be done through the driver app and is a mandatory step to register their profile on the e-TIMS platform.
Complying with this new requirement offers several key advantages:
- Uber handles the invoicing process for you, ensuring you remain compliant with the law easily and efficiently. This automated system reduces the administrative burden on individual drivers.
- This change is expected to lead to an increase in trips, as more riders who are business customers will be able to use the automatically generated tax invoices to claim their expenses.
- Submitting your KRA PIN certificate is now a requirement for all active drivers. Failure to comply can result in fines and the inability to claim certain tax deductions. If you don’t have a KRA PIN certificate, you are advised to apply for one to continue operating on the platform without interruption.
This new system is part of a broader KRA initiative to modernize tax administration and enhance revenue collection by bringing all businesses, including those in the informal sector, into the tax framework.