Learn About eTIMS
Onboarding for Non-VAT
The Finance Act 2023 introduced Section 23A in the Tax Procedures Act, 2015 which requires every person in business to record each sale, issue and transmit Electronic Tax Invoices (ETI) through an electronic management system.
As at 1st September 2023, all taxpayers doing business including those who are not registered for VAT (non-VAT taxpayers) and fall under the Income Tax bracket are required to on board on eTIMS.
As at 1st January 2024, income expenditure or loss shall be not deductible if the invoices are not generated from an electronic tax invoicing system (TIMS or eTIMS).
However, some valid business costs such as emoluments, imports, investment allowances, interest and air passenger ticketing have been excluded from the requirement of being supported by an eTIMS invoice.
Onboarding onto eTIMS is underway until 31st March 2024. Once onboarded, the taxpayers will be required to progressively capture on eTIMS, all invoices and receipts issued manually from 1st January 2024 up to the date of onboarding.
Who is required to onboard?
All persons engaged in business are required to on-board eTIMS and issue electronic tax invoices.
The law requires that for any person to claim their business expense, the expense must be supported by an electronic tax invoice. Therefore, all persons engaged in business are required to issue electronic tax invoices, whether registered for VAT or not (non-VAT taxpayers).
Persons in business include -
a.Companies, partnerships, sole proprietorships, associations, trusts etc.
b.Persons with income tax obligations including -
-Monthly Rental Income (MRI) Tax
-Turnover Over Tax (TOT)
-Annual Income Tax – for Corporations, Partnerships and Individuals, both resident and non-residents with a permanent establishment.
c.Persons conducting business in various sectors, including the informal sector.
d.Persons in business whether or not registered for VAT. Persons in business but not required to register for VAT e.g. persons supplying VAT exempt goods and services such as hospitals supplying medical services, schools supplying education services, tours and travel agents, NGO’s in business etc are also required to on-board on eTIMS.
How to Onboard?
