Taxpayers eTIMS Compliance

KRA eTIMS simplified  

What is eTIMS?

eTIMS is a software solution which provides technological convenience to meet taxpayers’ compliance needs. eTIMS will be accessed through various electronic devices including computers and mobile phone Apps, making it more convenient, user-friendly and flexible for businesses to use.

The eTIMS system was introduced by the Authority to improve the efficiency of Vat collection by facilitating electronic tax invoice management through standardization, validation, and transmission of invoices to KRA on a real time or near real time basis.

Who should use eTIMS?

• VAT registered taxpayers who are yet to be onboarded and are facing challenges integrating with TIMS ETR
• Taxpayers dealing in bulk invoicing and facing capacity/performance issues with invoice
• VAT registered taxpayers facing challenges integrating with TIMS ETR

The VAT Act of 2013 and the VAT (Electronic Tax Invoice) Regulations, 2020 provide the legal basis of the system and thus only VAT registered taxpayers are required by law to use the system or a tax register. All vat registered taxpayers are required by law to comply by having the new eTIMS system or have the recommended Electronic tax register that is upgraded.

For purposes of claiming input Vat, the buyers’ Pin must be included in the tax invoice among other information such as Buyers names, the Date, the item(s), quantity and amount of the transaction.

Should a business fail to comply , they risk facing a number of consequences including VAT obligation suspension and inclusion into the infamous special table, rendering one unable to operate, a taxpayer will not be able to claim input Vat for the period among others.

KRA has published detailed guidelines on registration, onboarding and trainings on how the system operates here (https://www.kra.go.ke/etims).

As a business owner, staying tax-compliant is easy once you understand the requirements of the new electronic tax system. The process can often seem overwhelming, however, when empowered with the right tools and information, you will find ease in your operations and decision-making processes.