eTIMS Lite: How Simple KRA Tax System for Small Businesses Works

A file image of the reception area at KRA offices in Nairobi.
A file image of the reception area at KRA offices in Nairobi.
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KRA

The Kenya Revenue Authority (KRA) has unveiled a user-friendly electronic Tax Invoice Management System (eTIMS) to ease customer experience when transmitting their invoices to the taxman.

In a statement on Monday, March 4, the authority indicated that the new system covers all businesses both large and small including those in the informal sector.

The users who are non-Value Added Tax (VAT) registered taxpayers will be able to generate and transmit their invoices using the platform.

"Kenya Revenue Authority (KRA) would like to remind the public 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)," read the statement dated March 4 in part.

Residents of Nakuru lining up to seek services from the Kenya Revenue Authority mobile services on November 24, 2023
Residents of Nakuru lining up to seek services from the Kenya Revenue Authority mobile services on November 24, 2023
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KRA

How it Works

According to KRA, eTIMS Lite will be accessible through eCitizen platform as well as USSD code, where Kenyans will be able to acquire services by dialling *222#.

The targeted business people and traders can also access the simplified system by logging onto www.ecitizen.kra.go.ke for the web-based invoicing solution.

To boost usage, the taxman has made concerted efforts towards publicity, awareness and tax literacy through continuous stakeholder engagement and taxpayer education targeted at players in the informal sector.

The targeted taxpayers include farmers, jua kali traders and artisans amongst others.

"KRA wishes to invite taxpayers and representative bodies who may experience challenges adopting the existing solutions to reach out to further explore solutions tailored to cater to their specific needs," added the Authority.

"One such consideration is the reverse invoicing solution where a seller can/may give consent or authority to the buyer to issue invoices on their behalf."

The system will also give sellers the flexibility of allowing buyers to issue invoices on their behalf.

Small business owners and those in the informal sector are expected to file their taxes on a monthly basis.

Traders selling goods at Kikuyu Market in Kiambu County
Traders selling goods at Kikuyu Market in Kiambu County
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Kikuyu Market