Finance Act, 2026

What it saysAmends the Tax Procedures Act so that from 1 July 2026, electronic filing and payment non-compliance attracts the higher of 5% of the tax due or the statutory minimums — replacing the earlier 'two times the tax due' penalty from the Finance Act 2023.

What it means for your businessSmall businesses lost their 'too small to chase' shield. A sole trader invoicing without eTIMS now faces a five-figure minimum, not a rounding error.

What it saysPayment processing, settlement, merchant acquiring, gateway and aggregation services supplied over a software platform move from exempt to taxable at 16%, effective 1 July 2026.

What it means for your businessFintech pricing changes from July 2026 — merchants' payment fees now carry VAT, and fintechs must re-engineer invoicing and input credit apportionment.

What it saysProvides the framework under which KRA pre-fills VAT returns from eTIMS and ledger data — with full auto-population rolling out toward 2027.

What it means for your businessYour eTIMS invoices effectively become your draft VAT return. Errors made at invoicing time now surface as return errors, so invoice hygiene is return hygiene.