KRA stopped accepting paper for VAT claims. Here's the exact set of fields a 2026 tax invoice needs, why the eTIMS QR code matters, and how to close the loop between invoice, payment, and your records.
For years, "being ready for KRA" meant having a nicely formatted paper invoice and a filing cabinet. That changed. Under the electronic Tax Invoice Management System (eTIMS), the invoice you raise is first and foremost an electronic record in KRA's systems — the piece of paper (or PDF) you send the client is a copy of that record, not the record itself.
Since the July 2024 transition, if you're VAT-registered, invoices issued outside eTIMS no longer qualify as evidence when you claim input VAT. Your supplier's invoice needs to exist in KRA's records — with its QR code — for your claim to hold up. That's the change that makes this worth getting right in 2026.
Set out under the VAT (Electronic Tax Invoice) Regulations, the mandatory fields on a tax invoice are these:
| Field | What it must show |
|---|---|
| Heading | The words "Tax Invoice" displayed conspicuously. |
| Supplier details | Registered business name, address, and KRA PIN. |
| Serial number | Unique and sequential — gaps and repeats flag instantly in a review. |
| Date of issue | The date the supply happened or the invoice was raised. |
| Buyer details | Name, address, and KRA PIN of the purchaser where the buyer is VAT-registered. |
| Line items | Description, quantity, and unit price of the goods or services supplied. |
| VAT & totals | Value of the supply excluding VAT, the VAT charged (16% standard rate), and the total payable. |
| eTIMS QR code | Generated by eTIMS when you issue — verifiable through the KRA app. |
Here's what a compliant 2026 tax invoice looks like:
For sales to buyers who aren't VAT-registered, KRA allows a simplified invoice — fewer buyer details. It's still issued through eTIMS and still carries the QR code. Don't treat "simplified" as "skip eTIMS".
The QR code is not decoration. When eTIMS issues an invoice it generates a unique control number, and the QR encodes it so KRA can verify the invoice exists in its systems in a matter of seconds. Scan it with the KRA app and the invoice resolves against the national record.
Two practical consequences follow. First, your input VAT claims depend on your suppliers' invoices carrying valid codes — if theirs don't, your claim is the thing that gets rejected. Second, credit notes also go through eTIMS: an adjustment outside the system leaves your sales and your returns telling different stories.
An invoice that sits on a PDF and never talks to the money that arrives for it is only half a record. In Kenya that money usually arrives as an M-Pesa message on a Till or Paybill — and this is where the trail quietly breaks. Someone matches a string of "K Sh ... received" messages to invoices by hand, weeks later, and the month-end file never quite ties out.
The version of "being ready for KRA" that survives an audit is the one where every issued invoice has a matched payment and a spot in your records. That's the loop worth automating — an invoice that links to the money that settled it is a complete, defensible record.
Once the money lands, the same 9th-of-the-month rhythm applies to the statutory deductions on your payslips. The 2026 rates that matter:
| Deduction | 2026 rate | Due |
|---|---|---|
| PAYE | 10% / 25% / 30% / 32.5% / 35% on taxable income | 9th |
| SHIF | 2.75% of gross salary, minimum KES 300 | 9th |
| NSSF | 6% employee + 6% employer, Tier I/II (up to KES 4,320 total) | 9th |
| AHL | 1.5% employee + 1.5% employer match | 9th |
The status of NSSF contribution rates has been under legal clarification during 2026 (see the June 2026 NSSF clarification). Confirm the current position with your accountant before each payroll run.
Tieghtsuite handles this stack on your payslips and keeps your invoices, eTIMS-ready records, and M-Pesa reconciliation in one place — so the file is complete before your accountant even asks for it.
Rates, thresholds, and deadlines shift — the Finance Bill conversation in 2026 is one reminder among many. Treat this as a starting point and confirm the current position on the official portals (or with your accountant) before building your process around it.
Invoices, eTIMS-ready records, M-Pesa reconciliation, and payslips — set up your first invoice in about five minutes, no card required.
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