TIMS
How do traders account for invoices raised in foreign currency?
Last Updated: November 18, 2024The 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...
What are the offences and penalties for non-compliance with the VAT (ETI) Regulations 2020?
Last Updated: November 18, 2024Failure 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...
Can I correct or amend an Invoice that has already been transmitted to the KRA?
Last Updated: November 18, 2024Yes. 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.
What additional features do the compliant ETRs have?
Last Updated: November 18, 2024Validation 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...
How do I correct errors on the data capture?
Last Updated: November 18, 2024Data 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.
What are the benefits of complying for VAT taxpayers?
Last Updated: November 18, 2024Fostering 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
How do I correct errors on the data capture?
Last Updated: November 18, 2024Data 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.
Where can I find a list of Approved ETR Manufacturers and Suppliers?
Last Updated: November 18, 2024A complete list of approved ETR manufacturers can be found and downloaded from here.
My billing system is fully automated – must I still get an ETR to issue tax invoices
Last Updated: November 18, 2024Yes, the requirement to adopt a compliant ETR applies to all VAT registered taxpayers regardless of the billing system in use.
I run a small retail business with turnover of less than KES 1,000,000/-. Am I required to comply with the electronic tax invoice requirements despite not meeting the VAT obligation threshold?
Last Updated: November 18, 2024Only VAT registered taxpayers are required by law to use a tax register as per the VAT Act (2013) and the VAT (ETI) Regulations (2020) .
What happens in case of loss of internet connection?
Last Updated: November 18, 2024The 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.
What are the key features of valid electronic Tax Invoice?
Last Updated: November 18, 2024Buyer 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...
What is the criteria for onboarding?
Last Updated: November 18, 2024A 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
What is TIMS?
Last Updated: November 18, 2024The 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.
What are the different types of ETRs?
Last Updated: November 18, 2024Type 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...