Overview

eTIMS (electronic Tax Invoice Management System) is a software solution that provides taxpayers with options for electronic invoicing. As per the tax laws, taxpayers are required to generate and transmit tax invoices.

Why eTIMS?

1. It is free.
2. Simplifies tax return filing.
3. Flexible as there are various solutions.
4. Enhances accurate record keeping.

Key Facts & Figures

Number of taxpayers onboarded as of 19th September 2024: 323,120

In FY 2023/2024, the average monthly Domestic VAT collection increased by 17.5%. After the introduction of eTIMS, the monthly average collection rose from Kshs. 23.599 billion in the first half of FY 2022/23 to Kshs. 26.250 billion in the second half. Currently, the monthly average Domestic VAT collection is Kshs. 28.680 billion.

Key Concerns

1. System Failure: eTIMS has occasionally collapsed, leaving taxpayers and businesses stranded.

   Response: Our technical team addresses issues promptly, minimizing downtimes and improving reliability.

2. Onboarding: Some taxpayers struggle with onboarding and seek outside help. There are also concerns about customer support.

   Response: KRA provides tailored solutions to suit various businesses:

   1. eTIMS Client – for traders selling goods.
   2. eTIMS Online Portal – for traders supplying services only.
   3. System to System Integration – for businesses with existing billing systems. List of approved third-party integrators.
   4. Simplification of the onboarding process for VAT & Non-VAT taxpayers.
3. Compliance Requirements: All business entities, including non-VAT taxpayers, must comply in line with Section 23(A) of the Tax Procedures Act, 2015.
4. Software Solutions: Different eTIMS solutions cater to various business needs.

   Response: Available solutions include:

   1. eTIMS Lite (Web) - for minimal transactions, accessible on eCitizen.
   2. eTIMS Lite (USSD) - accessed via *222# for individuals and sole proprietors.
   3. Online Portal - for service sector taxpayers.
   4. eTIMS Lite (Mobile App) - app-based for minimal transactions.
   5. eTIMS Client - for taxpayers dealing in goods, supports multiple branches.
   6. Virtual Sales Control Unit (VSCU) - system integration for high transaction volumes.
   7. Online Sales Control Unit (OSCU) - integration for online invoicing systems.
5. Invoice Management: Taxpayers need training on issuing and managing electronic tax invoices.

   Response: User guides are available on the KRA Website and "How to" videos on our YouTube channel. Assistance is also available through Tax Service Offices.

Clarifications & Misinformation

1. eTIMS is a tax: eTIMS stands for electronic Tax Invoice Management System. It is a software solution developed for electronic tax invoicing.
2. eTIMS compromises Data Privacy: eTIMS only captures transaction details, not personal or sensitive taxpayer information. KRA is legally obligated to protect taxpayer confidentiality under Section 6 of the Tax Procedures Act, Cap 469B.
3. Traders below the 5 million threshold are exempt: All traders, regardless of turnover, must onboard eTIMS and generate invoices as per the Tax Procedures Act.

Procedures & Guidelines

1. Who Should Onboard: eTIMS Onboarding for Non-VAT
2. How to Onboard: How to Onboard on eTIMS
3. How to Generate an Invoice on eTIMS: eTIMS Invoice Generation
4. Types of eTIMS Solutions: eTIMS Solutions
5. eTIMS FAQs: Frequently Asked Questions

Support Information

For additional support, please contact us:

Email: timsupport@kra.go.ke or callcentre@kra.go.ke

Phone: +254 20 4 999 999 or +254 711 099 999