VAT law requires that a registered person who makes a taxable supply should to at the time of the supply furnish the purchaser with a tax invoice with prescribed details of the supply.
Scope
- Legal requirement.
- Details in tax invoices.
a. Legal requirement
The question is: what is time of supply?
However, there is no requirement for a tax invoice for:-
- A supply that is not taxable.
- A supply by a person not registered for VAT.
When a person issues a tax invoice when they are not supposed to do so, it is an offence. The VAT amount that is charged in the invoice is due and payable within 7 days from the invoice date.
Only one original invoice, credit note and debit note are issued for a supply. However, a copy of a tax invoice can be provided in case the registered person claims to have lost it – certified copy.
b. Details in tax invoices
There are specific details that are required to be included in a tax invoice. The following are some of those details:
- Name of seller.
- Address of seller.
- PIN of seller.
- VAT number where applicable.
- Serial number.
- Date of supply/transaction.
- Name and address of purchaser.
- PIN of purchaser.
- Brief description of the supply (items) sold.
- Several units (where applicable).
- Unit price (where applicable).
- Gross amounts.
- Amount of discount if any.
- Vatable amount.
- VAT rate.
- VAT charged.
- Total amounts payable.
Note:
- A simplified tax invoice (cash sale receipt) can be issued in retail outlets. However, it must state that the price quoted is VAT inclusive.
- The Commissioner may require other details where necessary.
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Disclaimer
This post is for general overview and guidance and does not in any way amount to professional advice. Hence, www.taxkenya.com, its owner or associates do not take any responsibility for results of any action taken on the basis of the information in this post or for any errors or omissions. Kenyan taxpayers must always rely on the most current information from KRA. Tax industry in Kenya is very dynamic.
