eTims - Electronic Tax Invoice Management
Kenya's mandatory electronic invoicing system for VAT-registered businesses. Streamline your invoice generation, ensure compliance, and simplify tax reporting.
What is eTims?
Understanding Electronic Tax Invoice Management System
eTims is Kenya's Electronic Tax Invoice Management System introduced by KRA to modernize tax administration. It's mandatory for all VAT-registered businesses and enables real-time invoice generation, automatic tax calculations, and seamless compliance reporting.
Who Must Use eTims?
All VAT-registered businesses in Kenya must use eTims for issuing tax invoices. This includes manufacturers, importers, service providers, and retailers.
Implementation Timeline
eTims has been rolled out in phases since 2022. All VAT-registered businesses are required to be compliant. Check KRA announcements for specific deadlines.
Compliance Benefits
Automated VAT calculations, real-time reporting to KRA, reduced paperwork, improved accuracy, and streamlined audit processes.
Non-Compliance Penalties
Failure to use eTims can result in penalties including fines, tax assessment, and potential business closure for serious violations.
eTims Registration
Step-by-step registration process
Registration Steps
Prepare Required Documents
Valid KRA PIN, VAT certificate, business permits, and authorized signatory details.
Access eTims Portal
Visit the official eTims portal and select "New Registration" option.
Complete Registration Form
Fill in business details, contact information, and upload required documents.
Submit and Await Approval
Submit application and wait for KRA verification (typically 3-5 business days).
Receive Login Credentials
Upon approval, receive your eTims login credentials via email and SMS.
Required Documents
Ensure all documents are current and information matches your KRA records. Any discrepancies may delay the registration process.
Invoice Management
Creating and managing electronic invoices
Invoice Creation Process
Login to eTims
Access the eTims portal using your registered credentials.
Select Invoice Type
Choose appropriate invoice type (Sales, Credit Note, Debit Note, etc.).
Enter Transaction Details
Input customer information, items/services, quantities, and prices.
Review and Submit
Verify all details, VAT calculations, and submit for approval.
Invoice Types Available
| Invoice Type | Purpose |
|---|---|
| Sales Invoice | Standard sales transactions |
| Credit Note | Refunds or corrections |
| Debit Note | Additional charges |
| Proforma Invoice | Advance payments |
| Import Invoice | Customs clearance |
System Features
Key capabilities and benefits
Automatic Calculations
Automatic VAT calculations, tax inclusive/exclusive pricing, multiple tax rates support, and real-time total computations.
Real-time Reporting
Automatic transmission of invoice data to KRA, real-time compliance monitoring, and instant receipt confirmations.
Customer Management
Built-in customer database, PIN verification, transaction history tracking, and customer communication tools.
Inventory Integration
Stock management capabilities, item categorization, automatic inventory updates, and low stock alerts.
Analytics & Reports
Comprehensive sales reports, VAT summaries, transaction analytics, and customizable dashboards.
Mobile Access
Mobile-responsive interface, offline capabilities, QR code generation, and mobile payment integration.
Compliance Requirements
Essential compliance guidelines
Mandatory Requirements
Common Violations
Non-compliance with eTims requirements can result in penalties ranging from KSh 50,000 to KSh 2,000,000, tax assessments, business closure, and potential criminal prosecution for serious violations.
Integration & Support
System integration and technical support
System Integration
eTims offers API integration capabilities for businesses with existing ERP systems, POS solutions, and accounting software.
Technical Support
KRA provides comprehensive support for eTims users including training, technical assistance, and troubleshooting.
Quick Links & Resources
Essential links and additional resources
Useful Downloads
Frequently Asked Questions
Common questions about eTims
Q: Is eTims mandatory for all businesses in Kenya?
A: eTims is mandatory for all VAT-registered businesses in Kenya. Non-VAT registered businesses are not required to use eTims but may voluntarily register if they wish.
Q: Can I still issue manual invoices alongside eTims?
A: No, once registered for eTims, all tax invoices must be generated through the system. Manual invoices are not compliant and may result in penalties.
Q: What happens if the eTims system is down?
A: eTims has offline capabilities that allow you to continue generating invoices. The data will be synchronized automatically once connectivity is restored.
Q: How much does eTims cost?
A: Basic eTims access is provided free by KRA. However, you may incur costs for hardware, internet connectivity, training, and third-party integration services.
Q: Can I integrate eTims with my existing POS system?
A: Yes, eTims provides API integration capabilities. You can work with your POS vendor or a certified integrator to connect your existing system with eTims.
Need Help with eTims?
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