Introduction
The Electronic Tax Invoice Management System (eTIMS) is a digital invoicing platform introduced by the Kenya Revenue Authority (KRA) to modernize tax compliance and enhance transparency in business transactions. Launched in 2023, eTIMS replaces the traditional Tax Invoice Management System (TIMS), offering a flexible, accessible, and real-time solution for businesses of all sizes.
This comprehensive guide covers everything you need to know about KRA eTIMS, including:
- What eTIMS is and who must use it
- Different eTIMS solutions (Lite, USSD, Client, VSCU, OSCU)
- Step-by-step registration and onboarding process
- How to generate and transmit e-invoices
- Compliance deadlines and penalties for non-compliance
- Benefits of using eTIMS for businesses
- Troubleshooting common eTIMS issues
By the end of this guide, you’ll understand how to seamlessly integrate eTIMS into your business operations and stay compliant with KRA regulations.
What is eTIMS?
eTIMS is a digital invoicing system that allows taxpayers to:
✅ Generate and transmit electronic tax invoices in real-time to KRA
✅ Replace manual invoices and ETR machines
✅ Access invoicing via multiple platforms (web, mobile, USSD, ERP integration)
✅ Improve tax compliance and reduce fraud
Who Must Use eTIMS?
All businesses and individuals engaged in income-generating activities in Kenya must use eTIMS, including:
✔ Companies & partnerships
✔ Sole proprietors & freelancers
✔ Associations & trusts
✔ Non-VAT registered businesses
Exception:
- Small businesses (annual turnover ≤ Ksh 5M) can have buyers issue invoices via eCitizen.
Types of eTIMS Solutions
KRA offers multiple eTIMS solutions to suit different business needs:
| Solution | Best For | Access Method |
|---|---|---|
| eTIMS Lite (Web) | Small businesses, low transactions | eCitizen Portal |
| eTIMS Lite (USSD) | Basic invoicing, no internet needed | Dial *222# |
| eTIMS Online Portal | Service-based businesses | KRA eTIMS Portal |
| eTIMS Client Software | Goods sellers, multi-branch businesses | Download from KRA |
| Virtual Sales Control Unit (VSCU) | Large businesses with ERP systems | API integration |
| Online Sales Control Unit (OSCU) | E-commerce & online businesses | Cloud-based system |
How to Register for eTIMS
Step 1: Visit the KRA eCitizen Portal
Step 2: Log In with Your KRA Credentials
- Use your KRA PIN & password
- If new, register first
Step 3: Navigate to eTIMS Registration
- Go to “eTIMS” > “Onboarding”
Step 4: Select Your Preferred eTIMS Solution
Choose between:
- eTIMS Lite (Web/USSD)
- eTIMS Client (Downloadable Software)
- VSCU/OSCU (For ERP integration)
Step 5: Complete Registration & Wait for Approval
- KRA will verify and activate your account (within 24-48 hours)
How to Generate & Transmit e-Invoices
For eTIMS Lite (Web/USSD) Users:
- Log in to eCitizen or dial *222#
- Select “Create Invoice”
- Enter customer details, items, prices
- Submit – Invoice is sent to KRA instantly
For eTIMS Client/VSCU Users:
- Download & install eTIMS software
- Integrate with your POS/ERP (if applicable)
- Generate invoices as usual – system auto-transmits to KRA
Key Features of eTIMS Invoices:
✔ Real-time KRA submission
✔ QR code for authenticity verification
✔ Customizable invoice templates
✔ Digital storage & retrieval
Compliance Deadlines & Penalties
Mandatory Adoption Timeline:
- September 1, 2023 – VAT-registered businesses
- March 31, 2024 – Non-VAT registered taxpayers
Penalties for Non-Compliance:
- Denial of Tax Compliance Certificates (TCC)
- VAT refund delays
- Audits & fines (up to Ksh 100,000)
Benefits of Using eTIMS
✅ Cost Savings – No need for ETR machines
✅ Faster VAT Refunds – Real-time invoice validation
✅ Reduced Fraud – Digital invoices minimize fake receipts
✅ Improved Record-Keeping – All invoices stored electronically
✅ Business Efficiency – Faster invoicing & reconciliation
Common eTIMS Issues & Solutions
| Problem | Solution |
|---|---|
| Cannot log in | Reset password via eCitizen |
| Invoice not transmitting | Check internet, retry, or contact KRA support |
| QR code not scanning | Ensure correct invoice format |
| Software installation errors | Download latest version from KRA |
Need Help?
- KRA Support: +254 20 4 999 999
- Email: callcentre@kra.go.ke
Conclusion
The KRA eTIMS system is a game-changer for businesses in Kenya, ensuring transparency, efficiency, and compliance. By adopting eTIMS, you:
✔ Avoid penalties
✔ Streamline invoicing
✔ Improve tax compliance
Act now! Register for eTIMS and enjoy seamless digital tax management.
FAQs
1. Is eTIMS mandatory for small businesses?
- Yes, but businesses with ≤ Ksh 5M turnover can have buyers issue invoices.
2. Can I use eTIMS without internet?
- Yes, via USSD (*222#) for basic invoicing.
3. How do I correct a wrong invoice?
- Cancel & reissue within eTIMS (no manual edits allowed).
4. What if my eTIMS account is inactive?
- Contact KRA support for reactivation.
5. Are handwritten invoices still accepted?
- No, all invoices must be generated via eTIMS.
Stay compliant, reduce costs, and simplify tax management with eTIMS! 🚀
