The Kenya Revenue Authority (KRA) introduced the Electronic Tax Invoice Management System (eTims) in 2023, marking a significant shift in the way businesses handle tax invoices.
eTims in kenya is now mandatory for all businesses , including those not registered for VAT, to generate and transmit their invoices electronically.
This guide provides a detailed overview of eTims, including its various solutions, benefits, and a step-by-step process for registration and usage to ensure compliance with Kenyan tax regulations.
Table of Contents
What is eTims?
eTims stands for Electronic Tax Invoice Management System, a software solution developed to transition businesses from traditional paper invoicing to digital invoicing.
This system aims to enhance accuracy, security, and record-keeping by integrating seamlessly with KRA systems, thereby making tax filing more efficient and reducing errors.
Types of eTims Solutions
KRA offers several eTims solutions to cater to different business needs:
- eTIMS Lite (Web): A web-based application that allows businesses to generate e-invoices through a browser without the need for software downloads. This solution is ideal for businesses that are frequently on the move.
- eTIMS Lite (USSD): A mobile solution leveraging USSD technology for basic e-invoice generation, suitable for micro-businesses and areas with limited internet access.
- eTIMS Taxpayer Portal: A central hub for managing eTims accounts and monitoring e-invoice activities.
- eTIMS Client: Downloadable software for desktop users, providing comprehensive functionalities.
- Virtual Sales Control Unit (VSCU): Designed for businesses with high transaction volumes, offering web-based management of e-invoices (Kenya Revenue Authority) (Kenya Revenue Authority).
Benefits of Using eTims
Embracing eTims offers numerous advantages:
- Enhanced Record Keeping: eTims provides a centralized hub for electronic invoices, aiding in organized record-keeping, sales tracking, and informed decision-making.
- Flexibility: With multiple solutions catering to different business needs, eTims is adaptable for both small startups and large corporations.
- Simplified Tax Compliance: eTims eliminates manual data entry errors and ensures secure storage of all invoices for easy access during tax filing.
- Attracting New Business: Utilizing eTims showcases a commitment to transparency and ethical practices, which can build trust and attract new clients.
- Potential Tax Deductions: Using eTims may qualify businesses for certain tax deductions. Professional tax advice is recommended to explore these potential benefits.
How to Register for eTims in Kenya
Here’s a step-by-step guide to registering for eTims:
- Access the eTims Taxpayer Portal
- Visit the eTims portal.
- Sign Up for an Account
- Click “Sign Up” and enter your KRA PIN.
- Verify using the OTP sent to your registered mobile number.
- Create a strong password.
- Log In to Your Account
- Use your KRA PIN and password to log in at the portal’s homepage.
- Select Your Preferred eTims Solution
- Navigate to “Service Request” and choose from the listed eTims solutions that best fit your business needs.
- Complete Registration
- Submit the necessary business documents, such as the Certificate of Incorporation.
- Review and submit your application to the KRA for approval.
Generating Invoices with eTims
General Process for eTims Lite (Web)
- Access Your eTims Account
- Log in via the chosen eTims solution (eTims Taxpayer Portal or Client application).
- Invoice Generation
- Navigate to the invoice generation section.
- Enter necessary details such as customer information, invoice, and product/service details.
- Generate and Save Invoice
- Click “Generate Invoice” or “Save Invoice.”
- Options may include saving as a PDF or directly sending electronically.
Printing eTims Invoices
While eTims prioritizes digital invoicing, physical copies might be necessary at times:
- Web-Based Solutions: Generate and preview the invoice. Use direct print options or save the invoice as a PDF and print from a PDF reader.
- Desktop Applications: Generate the invoice and use built-in printing functions or export as a PDF for printing.
- Mobile Solutions: Printing directly from mobile solutions like eTims Lite (USSD) may not be feasible.
Conclusion
Implementing eTims is a crucial step towards digital transformation in tax processes. Though it may require initial adjustments, the long-term benefits such as efficiency, compliance, and business growth are substantial. For additional assistance, contact KRA eTims customer care at on : +254 20 4 999 999 or +254 711 099 999; Email on callcentre@kra.go.ke or visit the KRA website.
For more detailed information on eTims and its implementation, refer to the KRA’s dedicated eTims page (Kenya Revenue Authority)
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