The Kenyan Revenue Authority (KRA) has unveiled a new technology to help Kenyan business transmit tax invoices in real time at their convenience. The electronic Tax Invoice Management System (eTIMs) is an upgrade of the Tax Invoice Management System (TIMS).
Start Here
What it entails
Effective 1 January 2024, anyone offering goods or services to corporate clients will need to issue eTIMS compliant invoices as only such expenses will be regarded as tax deductible by the corporate client. The new e-invoicing requirement applies whether or not a person is registered for VAT; but does not apply if one has already onboarded on TIMS (device based).
This means that in 2024 and beyond, anyone in B2B business will need to be on eTIMS if they are to continue to trade with other corporate businesses.
Businesses will then be asked to show proof of eTIMS compliance because other businesses will only want to deal with persons who are similarly compliant.
Appropriate eTIMS technology
The appropriate technology for each business depends on the following factors:
- Service or goods business;
- Number of tills or paypoints;
- Hardware preferred – desktop, laptop or mobile phone
- Frequency of invoicing; and
- Use of in-house billing system.
This applies to:
- Individual consultants
- SMEs selling to corporates
- Large corporate entities.
The following persons and businesses are exempt from eTIMS:
- Non-resident persons without a permanent establishment in Kenya (a place of business in Kenya);
- Emoluments such as salaries and wages;
- Imports;
- Investment allowances;
- Interest; and
- Airline passenger ticketing and similar payments.
Types of eTIMS solutions
| eTIMS Solution | Suitability & Technical Specifications | Popularity |
| eTIMS portal | Accessible from a browser and appropriate for service providers | Individual – services industry |
| eTIMS Lite | Smartphone on Android version 8 and above – appropriate for service providers. | Individual – services industry |
| eTIMS Paypoint 1 | Windows 10 and above – appropriate for taxpayers selling goods and using one till or cashier. | Individual – with 1 shop – selling goods |
| eTIMS Multipoint | Windows 10 and above – appropriate for taxpayers selling goods and with multiple tills or paypoints. | Company – Supermarket |
| eTIMS Paypoint 2 | Android 8 and above – appropriate for taxpayers selling goods | Individual – with 1 shop – selling goods |
| Virtual Sales Control Unit and Online Sales Control Unit | System to system integration with KRA’s billing software | Company – has own ERP / Billing System |
How Ushuru Masterclass can assist you
- Sign up for eTIMS;
- Supply KYC documents:
- Application letter – signed;
- Company CR12;
- Director / Shareholder ID or Passport Copy;
- Commitment letter – signed.
- Review and recommend appropriate eTIMS software solution
- File documents with KRA
- Assist in approval installation or integration of eTIMS software
Fees
Corporate tax payer: KES 34,800 (inclusive of VAT) – eTIMS Client Software, Online eTIMS, eTIMS External ERP
Individual tax payer: KES 6,960 (inclusive of VAT) – eTIMS Mobile Application
Fees exclude:
- Monthly subscription from third party software providers;
- Cost of integration with client e-billing software
- Clean up of iTax profile such as director details and company details
Here is how you can take action:
Fill out the onboarding form: https://shorturl.at/dADU3
Book consultation call:
https://calendly.com/beatrice-n/etims-onboarding-discovery-call
Whatsapp for more information:
