The electronic Tax Invoice Management System (eTIMS) is the Kenya Revenue Authority’s platform for the generation, transmission, and validation of tax invoices. eTIMS compliance is mandatory for all VAT-registered taxpayers in Kenya, and KRA has progressively expanded its scope to non-VAT-registered businesses as well.
What Is eTIMS?
eTIMS transmits invoice data to KRA in real time or near-real time. When you issue an invoice through an eTIMS-integrated system, the invoice details are sent to KRA, which assigns a unique identification number to each invoice. This allows KRA to cross-reference what one business reports as a sale with what another reports as a purchase. Invoices not generated through eTIMS are not valid tax invoices, meaning your customers cannot claim input VAT on them.
Who Must Comply?
All VAT-registered persons in Kenya must use eTIMS. KRA has extended obligations to non-VAT-registered businesses for recording sales. Businesses should assume full compliance is required unless specifically exempted in writing by KRA.
How to Register and Set Up eTIMS
There are three access options: (1) the eTIMS Taxpayer Portal (web-based, suitable for low-volume users); (2) the eTIMS Client application (downloadable software); (3) the eTIMS Virtual SDC, which integrates via API with existing accounting software including QuickBooks, Sage, and Tally. Registration is done through your KRA iTax account.
Practical Compliance Tips
Integrate eTIMS with your accounting software as early as possible. Manual portal entry does not scale and creates reconciliation problems. Ensure all staff responsible for issuing invoices are trained on the system. Reconcile eTIMS data with your accounting records monthly to identify discrepancies before they compound.
Penalties for Non-Compliance
KRA can impose penalties for failing to use eTIMS or issuing invoices outside the system. Beyond direct penalties, non-eTIMS invoices are not valid for VAT input credit purposes, which damages your commercial relationships with other VAT-registered businesses and directly impacts your competitiveness.
Our Regulatory & Compliance practice advises on KRA compliance matters. Contact us for a consultation.
