- The law requires that for any person to claim their business expense, the expense must be supported by an electronic tax invoice.
- These include persons conducting business in various sectors, including the informal sector and persons in business whether or not registered for VAT.
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Electronic Tax Invoice Management System (eTIMS) is a software solution that provides taxpayers with simple, convenient and flexible tax invoicing.
The law requires that for any person to claim their business expense, the expense must be supported by an electronic tax invoice.
For this reason, all persons engaged in business in Kenya are required to onboard eTIMS and issue electronic tax invoices and transmit the invoices to KRA through the system.
These include persons conducting business in various sectors, including the informal sector and persons in business whether or not registered for VAT.
Companies, partnerships, sole proprietorships, associations, trusts and persons with income tax obligations including monthly rental income, turnover over tax and annual income tax for corporations, partnerships and individuals (both resident and non-residents) are required to onboard eTIMS.
VAT-registered taxpayers who adopted the TIMS ETR may continue to use the devices for purposes of invoicing and transmitting tax invoices to KRA.
However, anyone facing technical challenges using TIMS ETR devices is encouraged to migrate to eTIMS to allow business continuity.
The eTIMS software is offered free of charge by KRA although businesses that are integrating their invoicing system directly to eTIMS may incur costs if they opt to partner with one of the approved 3rd party integrators, as opposed to self-integration.
KRA has appointed 3rd party integrators to facilitate the integration process for taxpayers and the list of approved 3rd party integrators is available on the KRA website.
Their work is to integrate the billing systems of businesses with eTIMS.
Information on how a person can be certified as a 3rd party integrator or as a self-integrator is available on the KRA website under the eTIMS menu.
eTIMS can be accessed on various computing devices, including computers, laptops, tablets, smartphones and Personal Digital Assistants (PDAs).
Does one require internet connectivity to invoice through eTIMS?
According to KRA, online solutions like online portal and Online Sales Control Unit (OSCU) require a stable internet connection to generate invoices.
However, in case of internet downtime, other solutions like eTIMS Client and Virtual Sales Control Unit (VSCU) allow you to continue generating tax invoices but once the internet connection is restored, the generated invoices will be transmitted to KRA.
eTIMS comes with several benefits including reducing compliance costs as the solutions are provided free of charge.
According to the Kenya Revenue Authority, eTIMS also facilitates simplified return filing for taxpayers and allows taxpayers to maintain records of invoices issued on the taxpayer portal.
The stock management module also assists taxpayers to maintain their own inventory and offers flexibility in the solutions available and is accessible on various computing devices.
The stock management modules are configured during the installation of the software for persons supplying goods.
The eTIMS software supports stock management for both sales (outgoing stock) and purchases (incoming stock).
How to onboard eTIMS
Go to the eTIMS Taxpayer Portal etims.kra.go.ke
Click on the Sign-Up button and input your PIN.
One Time Password (OTP) will be sent to your iTax-registered mobile number.
Input the OTP sent to your registered mobile number on the signup page and you will be prompted to create a password for your profile.
Log in to the eTIMS taxpayer portal using your User ID (KRA PIN) and the password created during sign-up.
Click on the Service Request button and select your preferred eTIMS software solution listed under the “eTIMS Type” menu.
You will then be required to upload a copy of your ID if you are a sole proprietor or a copy of the ID of at least one of the directors for companies or one of the partners for partnerships.
Once you submit your application, an authorised KRA officer will verify the application and approve it as appropriate.
To verify whether an electronic tax invoice is valid, scan the QR code and then input the invoice number on the " Invoice number checker " menu on the iTax portal.