The Kenyan Revenue Authority (KRA) has introduced a new technological solution aimed at simplifying tax invoice management for Kenyan businesses.
Known as the electronic Tax Invoice Management System (eTIMs), this innovation is an enhanced version of the existing Tax Invoice Management System (TIMS) and is being provided free of charge to promote compliance, as announced by the KRA on 28 February 2023.
eTIMs will be accessible online and will seamlessly integrate with current billing systems, allowing users to access it through various electronic devices like computers and mobile applications.
The upgraded functionalities of eTIMs address several key issues:
- Reducing compliance costs for businesses registered for VAT.
- Effectively tackling problems related to missing trader invoices and fraudulent claims.
- Enabling real-time transmission of invoices to ensure accuracy in tax declarations and reconciliation.
- Eliminating the necessity for purchasing multiple hardware devices.
Additionally, eTIMs will include a Supply Chain Module (SCM) to help businesses manage their inventory, thereby improving compliance and offering insight into transactions from acquisition to sale.
The primary beneficiaries of eTIMs are traders who were unable to acquire the upgraded Electronic Tax Registers (ETRs) by the previous deadline set by the KRA. This new version complements the TIMS, which required businesses to obtain internet-enabled tax registers (ETRs) for real-time transaction reporting to the KRA. The rollout of eTIMs is progressing gradually into its second phase.
The decision to introduce this upgraded version followed feedback from taxpayers who faced challenges with TIMS adoption due to the high cost of ETRs, which ranged from EUR 253.00 to 290.00.
Since its launch on 6 March 2023, 67,954 out of 113,239 taxpayers have transitioned to the system. The KRA aims to onboard the remaining users by the end of the pilot phase.
