Doing Business in Kenya - RSM International

The tax invoice must contain the following particulars:• The name, address, PIN and VAT registration number of the supplier;• The date and serial number of the invoice;• The date of the supply, if different from the invoice date;• The name, address and PIN of the person (if known) to whom the supplywas made,;• The taxable value of the supply, if different from the price charged;• The rate and amount of tax charged on each supply;• Details of whether the supply is a cash or credit sale, and details of cash orother discount, if any, that apply;• The total value of the supply and the total amount of VAT charged;• A business logo; and• Electronic signature (for persons using an Electronic Signature Device(ESD)). Where a person uses an Electronic Tax Register (ETR), the ETRreceipt should be attached to the invoice.Any invoice not containing any of the above particulars is not a tax invoice. Taxablepersons require a valid tax invoice before they can claim credit for input tax.Registered persons who make cash sales from retail premises may issue a simplifiedtax receipt, which must satisfy the following requirements:• The name, address, PIN and VAT registration number of the supplier;• The serial number of the receipt;• The date and time of issue of the receipt;• Name, quantity, unit price chargeable to tax, tax rate and the value of therecorded sale of the goods or services supplied;• The tax amount payable and total amount payable inclusive of VAT; and• An explicit statement that the price includes VAT.• Such simplified tax invoices must either have an electronic signature or beaccompanied by an ETR.Where a registered person is a retailer or is primarily supplying taxable goods orservices to unregistered persons, he is required to quote or label prices inclusive ofVAT.Credit and Debit NotesA credit note may be issued where goods are returned or where a supplier decidesto reduce the value of the supply after a tax invoice has been issued. The amount tobe shown on the credit note is the amount of reduction. A credit note must be issuedwithin 12 months after the issue of the relevant tax invoice.DOING BUSINESS IN KENYA51