TRA: Jan.7 limit for new EFD software 'still valid'

12Jan 2021
Marc Nkwame
The Guardian
TRA: Jan.7 limit for new EFD software 'still valid'

THE Tanzania Revenue Authority is maintaining the deadline for upgrading Electronic Fiscal Devices to the latest versions, directing business entities to ensure their machines are running the new software giving them more digital flexibility on remote transactions.

At a TRA mid-year review meeting, Commissioner General Dr Edwin Mhede said the time frame for upgrading EFD machines to the latest firmware was set from the 7th of December 2020 to the 7th of January 2021 but traders, suppliers and other business entities have been dragging their feet to move from the previous 2.0 protocol to the new 2.1 protocol.

“Four weeks were enough for business owners to upgrade their EFD machines to the latest 2.1 firmware, but we have been getting requests from the majority, appealing for deadline extensions,” he said, insisting that the upgrade to protocol 2.1 was compulsory and needs to be executed promptly.

It is required by law that all suppliers of goods and services whose annual turnover exceeds 14m/- should issue fiscalised receipts (or invoices) through Electronic Fiscal Devices (EFDs).

“From late last year, the revenue authority rolled out the process of upgrading its electronic filing (e-filing) system for Value Added Tax returns as well as improving the Electronic Fiscal Devices Management System (EFDMS) which goes in-sync with the introduction of new software; namely Protocol 2.1, the commissioner elaborated..

“Receipts and invoices churned out from EFD machines running the old 2.0 firmware will not be able to pass the automatic verification test embedded in the new e-filing system,” explained the Deputy TRA Commissioner, Msafiri Mabibo.

He said with the new 2.1 upgrade, taxpayers will be able to settle and track their paid revenues remotely through smartphones, while the upgrade squashes bugs that caused problems for previous software as well as sealing loopholes for counterfeit receipts.

All EFD devices that are not capable of being configured to the Protocol 2.1 software need to be replaced with new ones from approved suppliers and the exercise should have been completed before January 2021. Read More...