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.

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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.