Kenya Revenue Authority (KRA) launched the Tax Invoice Management System (TIMS) in August 2021, with all (Value Added Tax) VAT-registered taxpayers required to comply and acquire the upgraded Electronic Tax Registers (ETR), twelve months from the roll-out date.
The upgraded ETRs allow for near real-time transmission of electronic invoices to KRA.
The deadline for traders to migrate to the upgraded Electronic Tax Registers (ETR) elapsed on 30th November 2022.
Among the issues raised during this period by business owners was the overall cost of acquiring the devices; some had challenges integrating the devices with their systems.
To address these challenges, the Kenya Revenue Authority (KRA) upgraded to the electronic Tax Invoice Management System, on February 1, 2023.
eTIMS is thus the software version of TIMS (Tax Invoice Management System). According to public notice, the electronic version will complement the TIMS, offering a convenient solution for taxpayers to meet their tax obligations.
It can be accessed via an online portal, personal computers, laptops, tablets, mobile phones and an application that facilitates integration with existing billing systems, thus making it more convenient, user-friendly and flexible for businesses.
Taxpayers with invoicing systems (ERPs) can therefore use the Virtual Control Unit (VCU) invoicing system, which facilitates integration with businesses that prefer to continue using their existing billing systems.
eTIMS also incorporates a Supply Chain Module (SCM), which manages your inventory, thus enabling you to track transactions.
Kindly visit the nearest KRA office to sign up
More Benefits of eTIMS
eTIMS is user-friendly and facilitates electronic tax invoice management through standardisation, validation, and transmission of invoices to KRA.
eTIMS further assists VAT-registered small, and large-scale businesses in reducing the cost of compliance.
Real-time invoice transmission provides accuracy in tax invoice declarations and reconciliation between filed returns and payments. eTIMS further eliminates the need for multiple hardware purchases.
Through eTIMS, KRA seeks to increase the Tax to GDP ratio, currently at 15.3%, with VAT accounting for 4%.
Upon full rollout, it will simplify the processing of VAT refunds, allow for pre-filled VAT returns, and offer non-intrusive verification of tax matters.
Legal Framework
KRA eTIMS was introduced in line with the VAT Act of 2013 and the VAT (Electronic Tax Invoice) Regulations, 2020, to capitalise on technological advancement and digitalization of revenue administration.
Taxpayers Targeted
VAT-registered taxpayers are yet to be onboarded TIMS ETR.
Taxpayers dealing in bulk invoicing and facing capacity/performance issues with invoice transmission.
VAT-registered taxpayers facing challenges integrating with TIMS ETR devices.
The above taxpayers should be VAT-Registered as per the provisions of the VAT Act 2013.
One should have internet connectivity and a device capable of transmitting invoices to KRA systems.
It should also transmit the validated tax invoices to KRA over the Internet in real time.
How to Download and Install eTIMS
Download and install eTIMS using any of the links below based on the device applicable to you.
- eTIMS Multi-Paypoint (Windows)
- eTIMS Paypoint (Windows)
- eTIMS Paypoint (Android)
- eTIMS Lite (VAT)
- eTIMS Lite (Non-VAT)
Frequently Asked Questions
I just bought an upgraded ETR device. What happens to it?
For those with the TIMS ETR devices – the devices will continue to be in use until advised to migrate fully into eTIMS. Roll-out of eTIMS will be done through a phased approach. As such, there will be continuous engagements with taxpayers throughout the implementation.
When is the supply of goods and services due for VAT?
VAT is due on taxable supplies in the following scenarios when an invoice is issued, goods are delivered, a completion certificate is issued for work done, or payment of supply is received in whole or in part (instalment payments/hire purchase plans).
What happens when the VAT rate changes?
KRA will implement a software update to reflect the change.
