What is KRA eTIMS ? –
The current Tax Invoice Management System (TIMS) is a device-oriented solution that mandates VAT-registered businesses to use Electronic Tax Registers (ETR) machines or control units to transmit invoices through their billing system. However, the recently launched eTIMS offers an advanced software solution to meet the compliance needs of taxpayers. Unlike TIMS, eTIMS offers greater technological convenience as it can be accessed via electronic devices such as computers and mobile phone apps, making it more user-friendly, flexible and accessible for businesses.
By upgrading to eTIMS, businesses will no longer require physical devices to generate invoices, thereby making the process more seamless and cost-effective. The flexibility and user-friendliness of the system will also enable businesses to enhance their compliance with tax regulations. Overall, eTIMS is an important upgrade to the existing tax management system and is expected to improve the efficiency and convenience of tax management for businesses in Kenya.
Those who currently use the TIMS ETR devices will still be able to use them until they are advised to fully migrate to eTIMS. The introduction of eTIMS will be a gradual process, implemented in phases with continuous engagement with taxpayers throughout the transition.
This phased approach ensures that taxpayers have sufficient time to familiarize themselves with the new system and migrate smoothly to eTIMS. It also ensures that the transition does not cause any major disruptions to their business operations.
Why should I adopt eTIMS ?
The primary goal of eTIMS is to reduce compliance costs for VAT-registered businesses in Kenya. By integrating with the eTIMS system, businesses can benefit from real-time invoice transmission, which provides greater accuracy in tax invoice declarations and reconciliation between filed returns and payments. Additionally, the system eliminates the need for businesses to purchase multiple hardware devices, further reducing their expenses.
Who should onboard eTIMS ?
- Taxpayers who are yet to be onboarded to the TIMS ETR devices
- Taxpayers dealing with bulk invoicing and experiencing capacity or performance issues with invoice transmission
- VAT-registered taxpayers facing difficulties integrating with the TIMS ETR devices.