eTIMS, the Electronic Tax Invoice Management System, is KRA's system for issuing and recording tax invoices electronically. When a business makes a sale, it generates an invoice through the system, and KRA receives the details at the same time. The aim is to cut under-reporting, speed up VAT claims and reduce the use of fake invoices.

Who is affected

Businesses that sell goods or services are expected to issue invoices through eTIMS, whether or not they are VAT-registered. Turnover tax businesses, VAT-registered businesses and many small traders are covered. The system offers different ways to connect: a free web or mobile application for small businesses, and integration options for larger businesses that use their own accounting software.

If you are a customer, you are affected too. When you buy from a business, you should ask for an eTIMS invoice that carries your PIN if you want to claim the expense.

Why it matters for your tax

Two practical points make eTIMS important:

  1. Deductible expenses. For a business to deduct an expense when it calculates its income tax, the law now expects the expense to be supported by a valid eTIMS invoice. A purchase with no proper invoice may be disallowed, which raises taxable profit. Confirm the current rule and any exceptions with KRA or an accountant.
  2. Input VAT. A VAT-registered buyer needs a valid tax invoice to claim input VAT. An invoice that does not show the buyer's PIN may not support the claim. Our VAT return calculator shows how input VAT feeds the amount payable.

How to get started

  1. Make sure you are registered with KRA and have your PIN and iTax account.
  2. Log in to iTax yourself and find the eTIMS registration, which links your business to the system.
  3. Choose how you will issue invoices: the online portal, the mobile app or an integration with your software.
  4. Set up your product list, prices and tax categories, so each invoice carries the right VAT treatment.
  5. Issue a test invoice, and then use it for every sale.

What a valid invoice shows

A valid invoice has a unique number and QR code from the system, the seller's name and PIN, the buyer's name and PIN where you want to claim, a description of the goods or services, the amount before tax, the tax charged and the total. Credit notes for returns should also be issued through the system.

Common problems

  • Customers do not give their PIN. Ask for it at the time of sale, because it is hard to add later.
  • Wrong tax category. A zero-rated or exempt item entered as standard-rated will charge the wrong VAT, which affects both the seller and the buyer.
  • Offline selling. If you trade where the internet is unreliable, ask KRA about offline options and keep a record until you can sync.

Records

Keep your sales invoices, the purchase invoices you receive and a monthly reconciliation to your accounting records. The reconciliation is the quickest way to find a missing invoice before it becomes a tax problem.

This guide is general information. eTIMS requirements and deadlines have changed, so check KRA's current notices.