What is KRA eTIMS? A complete guide for Kenyan businesses

KRA eTIMS (Electronic Tax Invoice Management System) is the Kenya Revenue Authority's system for issuing tax invoices electronically. Every business in Kenya, VAT-registered or not, must issue invoices through eTIMS, and buyers can only claim expenses that are backed by valid eTIMS invoices.

What is eTIMS?

eTIMS replaced the older Tax Register (TIMS) approach with a software-based system. Each invoice is transmitted to KRA, validated and given a control number and QR code. Buyers can scan the QR code to confirm the invoice is genuine. Because KRA sees the invoice when it is issued, eTIMS also helps KRA match a seller's sales with a buyer's expense claims.

Who must use eTIMS?

Under the Finance Act 2023, all persons carrying on business must issue eTIMS invoices, not only VAT-registered businesses. From January 2024 KRA also began disallowing business expenses that are not supported by a valid eTIMS invoice when it assesses income tax. In practice that means:

• Sellers must issue every tax invoice and credit note through eTIMS.
• Buyers should insist on eTIMS invoices from suppliers, or risk losing the deduction.
• Finance teams must reconcile what they record with what KRA sees.

Some payments, such as salaries and certain imports, are handled under other rules. Check KRA's current guidance for your situation.

Ways to connect to eTIMS

KRA offers several solutions, and the right one depends on how many invoices you issue:

If you already raise invoices in accounting or ERP software, typing them again into eTIMS Lite or the Client doubles the work and invites mistakes. A system-to-system integration removes the double entry.

How eTIMS works inside VisionONE

1. You post a sales invoice as usual.
2. VisionONE validates the customer PIN, item classification and tax codes.
3. The invoice goes to KRA in real time, and KRA's control number and QR code are saved.
4. The printed or emailed invoice carries the KRA details automatically.
5. Any rejected submission appears in an exceptions queue with KRA's message, so finance can fix and resend it.

Credit notes reference the original invoice, and M-Pesa receipts are matched to the same invoice, so sales, tax and cash all agree.

Common eTIMS mistakes to avoid

• Keeping two invoice number series, one in your software and one in eTIMS.
• Not checking failed submissions until month-end.
• Accepting supplier invoices that are not eTIMS-compliant, which can cost you the expense deduction.
• Wrong item classification codes, which lead to rejected invoices.

eTIMS FAQ