Technology firm Digitax has launched a system that enables micro, small and mediumsized enterprises (MSMEs) as well as large enterprises to obtain instant, tax-compliant invoices through the government’s electronic Tax Invoice Management System (e-TIMS).
The system, which is currently generating over 24 million invoices, has already onboarded more than 800 businesses, with a cumulative e-invoice value of KSh1 trillion.
“We provide a mobile-based platform with tax-compliant functionalities, and our system can manage multiple businesses, handle item catalogues, track invoices and provide billing management,” Digitax Chief Operations Officer Thuku wa Thuku says.
“Digital tax administration streamlines tax compliance in the sense that a manufacturer can have visibility on their tax obligations because there is granular information on the taxes generated. It helps them have predictable information in terms of VAT and other tax obligations at any given time.”
The system can be integrated with any accounting software or Enterprise Resource Planning (ERP) system. For large businesses, the software offers 19 different integration languages to choose from, making it suitable for various jurisdictions.
It also features asynchronous functionality that automatically refreshes transactions. In addition, DigiTax can generate e-receipts and invoices that can be printed or sent via email, making transactions nearly instant.
DigiTax also enables buyers to conduct reverse invoicing, a process where the buyer generates an e-TIMS-compliant invoice on behalf of the supplier. In this case, the responsibility for invoice issuance shifts to the purchaser, ensuring transactions are properly documented and tax-deductible. The reverse invoicing feature is designed for suppliers who lack technological capacity, operate informally or face challenges with tax documentation.
“DigiTax simplifies tax compliance, enabling businesses and individuals to manage their e-invoicing requirements seamlessly,” the firm says.
Through DigiTax, businesses can confirm supplier invoice authenticity, guaranteeing accurate expense records across operations at any time. Suppliers can also track all transactions through the system.
DigiTax also provides a testing environment that can be used to assess API integration before transitioning to production.
The firm currently operates in Kenya, Zambia and Nigeria.
Read: KAM Urges Stable Taxes to Strengthen Manufacturing Sector
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