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Frequently Asked Questions
ETIMS
eTIMS stands for electronic Tax Invoice Management System. It is a software solution which was developed for tax invoicing.
eTIMS can be accessed through various electronic devices including computers, laptops, tablets, smart phones and Personal Digital Assistants (PDA) devices.
Every person carrying out business in Kenya is required to on-board eTIMS to issue electronic tax invoices and transmit the invoices to KRA through the system. Persons in business include –
Companies, partnerships, sole proprietorships, associations, trusts etc.
Persons with income tax obligations including –
-Monthly Rental Income (MRI) Tax
-Turnover Over Tax (TOT)
-Annual Income Tax – for Corporations, Partnerships and Individuals, both resident and non-residents with a permanent establishment.
Persons conducting business in various sectors, including the informal sector.
Persons in business whether or not registered for VAT. Persons in business but not required to register for VAT e.g. persons supplying VAT exempt goods and services such as hospitals supplying medical services, schools supplying education services, tours and travel agents, NGO’s in business etc are also required to on-board on eTIMS.
Note: VAT registered persons who did not adopt the TIMS ETR device will be required to onboard onto eTIMS.
All VAT registered persons ought to have already onboarded on either TIMS or eTIMS without exception and have all their invoices issued electronically and transmitted to KRA.
However, for non-VAT registered persons, onboarding onto eTIMS is underway until 31st March 2024. Once onboarded, the taxpayers will be required to progressively capture on eTIMS all invoices and receipts issued manually from 1st January 2024 up to the date of onboarding.
- The requirement to onboard eTIMS and issue eTIMS compliant invoices is anchored in law.
- With effect from 1st January 2024, any person making deductions for business expenditure such as purchases and other business costs for income tax purposes is required to support such expenditure with a valid electronic tax invoice.
- Failure to issue TIMS ETR or eTIMS compliant tax invoices to your customers will deny them the ability to claim the expense when filing their income tax returns for periods commencing 1st January 2024.
NB: However, some valid business costs such as emoluments, imports, investment allowances, interest and air passenger ticketing have been excluded from the requirement of being supported by an eTIMS invoice.
No.
The eTIMS software is offered free of charge by KRA, i.e. the online portal and eTIMS client software.
However, 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
- Online portal – this is a web based portal suitable for taxpayers providing services only.
- eTIMS client – this is a downloadable software suitable for taxpayers dealing in goods or both goods and services. The software can accommodate multiple branches and pay points/cashier tills.
- Virtual Sales Control Unit (VSCU) – is a solution that allows for a system to system integration between the taxpayer’s invoicing/ERP system and eTIMS. It is suitable for taxpayers with numerous transactions/bulk invoicing.
- Online Sales Control Unit (OSCU) – is a solution that also allows for a system to system integration between the taxpayer’s invoicing/ERP system and eTIMS. It is suitable for taxpayers using an online invoicing system.
Step 1: Go to the eTIMS Taxpayer Portal etims.kra.go.ke
Step 2: Click on the Sign-Up button and input your PIN.
Step 3: One Time Password (OTP) will be sent to your iTax registered mobile number.
Step 4: Input the OTP sent to your registered mobile number on the sign up page and you will be prompted to create a password for your profile.
Step 5: Log in to the eTIMS taxpayer portal using your User ID (KRA PIN) and the password created during sign up.
Step 6: Click on the Service Request button and select your preferred eTIMS software solution listed under the “eTIMS Type” menu.
Step 7: Upload the following documents:
A copy of the National ID of:
At least one of the directors for Companies
At least one of the partners for Partnerships
The business owner for sole proprietorships
Duly filled Commitment form.
Step 8: Submit your application. An authorized KRA officer will verify the application and approve as appropriate.
Install and configure the eTIMS software on the preferred device:
-For self-installation, one can access the ‘Step by Step guides’ .
-Taxpayers can also visit the nearest KRA office for assistance.
If you input your PIN and get an error message, kindly email timsupport@kra.go.ke for assistance
- Confirm that you have access to your iTax registered mobile number. If not, you will be required to update your mobile number through your iTax profile in order to complete the sign up process.
- Activate promotional messages on your mobile phone in order to receive the OTP.
Reset your password on the eTIMS Portal by clicking on the link “Forgot password”
No.
The eTIMS client software can only be installed on one device per taxpayer, for those selling goods.
However, for taxpayers supplying services only, the online portal is accessible on any device since it is a web-based solution.
Yes.
It is available for persons supplying goods. The eTIMS software supports stock management for both sales (outgoing stock) and purchases (incoming stock). The stock management modules are configured during installation of the software.
Yes.
It is possible through a system to system integration. This integration is possible via the Virtual Sales Control Unit (VSCU) or Online Sales Control Unit (OSCU).
KRA has appointed 3rd party integrators to facilitate the integration process for taxpayers. The list of approved 3rd party integrators is available on the KRA website.
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.
Yes. It is possible. However, you will be required to visit the nearest KRA office for assistance. The following will be required:
- In case the device was stolen, provide the Occurrence Book (OB) report from a police station confirming theft of the device.
- In case the device malfunctioned, provide a job card from a qualified technician confirming the malfunction.
- In any other case such as software upgrade or change of device, provide relevant supporting documents.
- For the online solutions, i.e. online portal and Online Sales Control Unit (OSCU), a stable internet connection is required to generate invoices.
- For the other solutions i.e. eTIMS Client and VSCU, in case of internet downtime, the solutions will allow you to continue generating tax invoices. However, once your internet connection is restored and is stable, the generated invoices will be transmitted to KRA.
- Scan the QR code.
- Input the invoice number on the ” Invoice number checker ” menu on the iTax portal
Yes.
You can appoint a suitable representative to sign up and install the eTIMS solution on your behalf.
The following is required:
- An introductory letter, signed by at least one of the directors or partner or business owner clearly indicating who has been appointed as the tax representative and their role in the business. Include your contact information, in case a KRA official will need to contact you.
- The director(s) or partner(s) or owner of the business should fill in and sign the eTIMS Acknowledgement &Commitment Form
- Copy of the director’s/partner’s/owner’s national ID.
- Copy of CR12 form for companies or Partnership Deed for Partnerships.
- The above documents should be uploaded by the representative on the eTIMS portal.
You can either:
Visit the KRA website and access the eTIMS menu
Send a Direct Message (DM) via Facebook or Twitter using the official KRA pages.
Visit the nearest KRA office
TIMS
The Tax Invoice Management System (TIMS) is an upgrade of the current Electronic Tax Register (ETR) regime that was rolled out in 2005.
It will facilitate electronic tax invoice management through standardization, validation, and transmission of invoices to KRA on a real time or near real time basis.
A taxpayer must:
Be VAT Registered as per the provisions of the VAT Act 2013
Have an invoicing system with the capability to transmit invoices to KRA systems
Have internet connectivity
- Buyer PIN – refers to the PIN of the purchaser. The capture of the buyer’s PIN is optional when generating an invoice and is only applicable where the purchaser intends to claim input tax for the VAT paid. NOTE: It is the responsibility of the buyer to provide their PIN details to be captured in the invoice where they intend to claim input tax.
- Control Unit serial number – a unique number issued by KRA to identify each tax register.
- Control Unit invoice number – a unique number generated by the tax register upon issuance of each tax invoice.
Quick Response (QR) Code – to confirm the validity of the tax invoice
The VAT taxpayer should continue using the tax register as usual. Once the internet connectivity is restored, the invoices generated and stored in the tax register’s memory will be automatically transmitted to KRA.
Only VAT registered taxpayers are required by law to use a tax register as per the VAT Act (2013) and the VAT (ETI) Regulations (2020)
Yes, the requirement to adopt a compliant ETR applies to all VAT registered taxpayers regardless of the billing system in use.
Data entry errors made when generating an invoice may be corrected through issuance of credit notes or debit notes which must reference the original invoice number.
- Fostering a fair business environment
- Pre-filled VAT return; simplified return filing
- Auto activation of the Electronic Tax Register
- Faster processing of VAT refunds
- Non-intrusive verification of tax matters
- Type A – suitable for small business entities whose record keeping is manual and those who do sales on the move, e.g. van sales since the ETR is portable
- Type B – suitable for retail outlets and shops using point of sale terminals
- Type C- suitable for businesses that have automated their operations and are using software billing systems/ERPs.
- Type D – suitable for all types of business entities
- Validation of invoice data at the point of issuing an invoice
- Generation of a unique QR code
- Generation of a unique invoice number for every invoice/receipt; control unit invoice number
- Transmission of the electronic tax invoice to KRA on a real-time or near real time basis
- Capture of buyer PIN (optional); only for those who intend to claim input VAT
- Generation of credit and debit notes to correct or amend an invoice
Yes. The ETRs have the ability to generate credit or debit notes for purposes of amending or correcting invoices. The credit/debit note will also be transmitted to KRA and must make reference to the original invoice number.
Failure to comply with any of the Regulations will result in penalties as specified in Section 63 of the VAT Act (2013) which states that “A person convicted of an offence under this Act for which no other penalty is provided shall be liable to a fine not exceeding one million shillings, or to imprisonment for a term not exceeding three years, or to both”
The unit of currency to feature in books of account, tax returns and tax invoices must be in Kenya shillings as per Section 23 of the Tax Procedures Act. Taxpayers are advised to convert the foreign currency into the Kenyan shilling equivalent value using the prevailing CBK mean rate for the day. The foreign currency values may appear on the invoice, however for tax purposes reference will be made to the Kenya shilling values.