The Kenya Revenue Authority (KRA) introduced the Electronic Tax Invoice Management System (eTIMS) to ensure that all businesses issue valid tax invoices.
The eTIMS platform was launched in 2020 to boost tax compliance by tracking transactions in real time. Under the new e-invoicing system, taxpayers must electronically generate and transmit invoices to KRA.
Who Needs to Use eTIMS?
Regardless of Value Added Tax (VAT) registration status, all businesses need to comply with eTIMS. This includes individuals and companies earning rental income, those under the Turnover Tax (TOT), and those with annual turnovers below KSh 5 million.
What are the Benefits of eTIMS?
- Improves tax compliance for businesses and the government
- Simplifies tax return filing
- Reduces errors in invoices
How to Use eTIMS
There are several eTIMS solutions available, depending on your business needs:
- eTIMS Lite (Free): Ideal for non-VAT registered businesses with few transactions. Accessible through the eCitizen portal, USSD code (*222#), and a mobile app (coming soon).
- eTIMS Online Portal (Free): This is for service-based businesses only. Accessible through a web browser.
- eTIMS Client (Paid Software): This software is designed for businesses that sell goods or both goods and services. It offers options for single or multiple locations and cashier tills.
- eTIMS System-to-System Integration (Paid): This option directly integrates your existing invoicing system with eTIMS. It is ideal for businesses with high transaction volumes.
What Happens if I Don’t Use eTIMS?
- Businesses failing to issue eTIMS-compliant invoices may face penalties.
- Businesses cannot claim expenses on income tax returns unless supported by a valid eTIMS invoice (with some exceptions).
Where to Get Help with eTIMS?
The KRA offers various resources and support for onboarding with the Electronic Tax Invoice Management System. Details are on their website, or you can contact them for assistance.
