KRA iTax glitch leaves taxpayers facing VAT filing delays, penalties ahead of August 20 deadline

Kenya Revenue Authority (KRA) has admitted to technical issues affecting taxpayers attempting to file their July Value Added Tax (VAT) returns on the iTax platform, creating new concerns for businesses trying to meet the August 20 deadline. Many taxpayers have reported difficulties in completing their VAT returns, with some experiencing system errors and others noting that their July sales and purchase invoices have not appeared in the pre-populated sections of their iTax returns.

These delays have left affected taxpayers uncertain about how to finish their filings as the deadline nears. A taxpayer contacted KRA on Thursday, expressing inability to file a VAT return due to a system error: "Good afternoon, is there an issue on Itax today. Am trying to file VAT returns am getting system error." KRA acknowledged the problem as a temporary network issue, advising taxpayers to use a different browser or wait before attempting to file again.

However, the issue extends beyond platform access. Businesses whose July sales and purchase invoices have not been uploaded to iTax may struggle to accurately complete their VAT returns. KRA has acknowledged delays in the transmission of invoices to pre-populated sections but stated that some invoices have already been transmitted while the process is ongoing.

This has added pressure for VAT-registered businesses, especially those awaiting their July eTIMS invoices before submitting their returns. Returns must be filed and payments made by the 20th day following the transactions, meaning July returns are due by August 20. Businesses now face a dilemma: proceed with incomplete information or wait for missing invoices and risk missing the deadline.

KRA has cautioned taxpayers to validate their return files before submitting them through iTax. As the deadline approaches, affected businesses need to decide whether to file with incomplete data or wait for the missing invoices, risking non-compliance penalties. KRA has not indicated automatic exemption from penalties for taxpayers unable to file on time due to technical problems or missing invoices.

Businesses are watching for further guidance from KRA on how to proceed and if relief will be provided for those affected by the system failures.