Explainer: How the eTIMS works

KRA eTIMs is a cloud-based software that makes it easy for VAT-registered businesses. [File,Standard]

Kenya Revenue Authority (KRA) now says that all persons carrying on business including those in the informal sector and small businesses are required to electronically generate and transmit their invoices to KRA via the electronic Tax Invoice Management System (eTIMS).

This is in line with a public notice that was issued in November 2023, where KRA directed that all taxpayers carrying on business, including those not registered for value-added tax (VAT), to onboard on the electronic Tax Invoice Management System (e-TIMS)

KRA eTIMs is a cloud-based software that makes it easy for VAT-registered businesses to connect their accounting system to the Authority without the need to buy ETR TIMS devices. The system went live on February 1, 2023.

The taxman says it remains committed to continue supporting and facilitating all taxpayers to comply with the requirements of the law by adopting a facilitative and collaborative approach to tax compliance.

"To this end, we have availed eTIMS simplified solutions dubbed "eTIMS Lite" for non-VAT registered taxpayers," KRA stated in a press release on Monday, March 4.

What is eTIMS?

eTIMS offers flexibility in the solutions available and is accessible on various computing devices; The stock management module assists taxpayers in maintaining their inventory.

According to the KRA website, eTIMS allows taxpayers to a maintain record of invoices issued on the taxpayer portal and also facilitates simplified return filing for taxpayers.

How to access eTIMS

It is accessible through the eCitizen platforms via *222# for the USSD invoicing solution and ecitizen.kra.go.ke for the web-based invoicing solution.

How do you use eTIMS

One has to log in using their UserID (KRA PIN) and password.

Under the Category name field enter the name of the service you offer and search. Take note of the Code for that service.

After that, on the eTIMS Menu, select search registered item.

Requirements for eTIMS?

The user must be selling goods.

Taxpayer must have a desktop/laptop running Windows OS; not compatible with MAC computers - Windows 10.0.17 or a later version, 2GB minimum RAM, 20 GB minimum storage.

Taxpayers should not have an invoicing system.

Who is exempted from eTIMS?

No business is exempted. ALL businesses are required onboard and should have mandatory issuance of eTIMS-generated invoices.

Advantages of eTIMS

eTIMS offers flexibility in the solutions available and is accessible on various computing devices.

The stock management module assists taxpayers in maintaining their inventory.

It also allows taxpayers to maintain a record of invoices issued on the taxpayer portal.

Lastly, eTIMS facilitates simplified return filing for taxpayers.