eTIMS Onboarding for VAT and non-VAT Businesses

Effective from 1^st September 2023, all businesses in Kenya, whether registered for VAT or not, should switch to the new eTIMS (Electronic Tax Invoice Management System) for electronic handling of invoices using the eTIMS onboarding process. 

The Kenya Revenue Authority (KRA) also stated that effective from January 1, 2024, taxpayers cannot claim their business expenses, if those expenses weren’t supported with electronic invoices. Hence, all taxpayers in Kenya have been gradually transitioning from their existing invoicing systems/ERPs to the new eTIMS model.

Is the onboarding process different for VAT and non-VAT-registered businesses?

The new electronic invoicing software of eTIMS comes in different types, with each type suiting a certain type of business. The basic eTIMS onboarding process of signing up with your credentials and verifying your business with the OTP is the same for VAT-registered and non-VAT-registered businesses.

However, the main difference arises in choosing the type of eTIMS solution that best fits businesses requirements. KRA released eTIMS Lite, a new platform, exclusively for non-VAT registered to seamlessly integrate to eTIMS. For VAT-registered businesses, KRA has other platforms such as eTIMS Client, Online Portal, Virtual Sales Control Unit (VSCU) and Online Sales Control Unit (OSCU).

eTIMS onboarding steps for non-VAT taxpayers 

Non-VAT registered businesses can access the new eTIMS Lite Software through the eCitizen portal.

• Visit the portal, ecitizen.kra.go.ke.
• If your business has an existing eCitizen account, you can log in with your credentials. If not, you can click on the signup option.
• Enter the PIN (Personal Identification Number) of your business to register your account.
• Enter the OTP you received on your registered mobile on the eCitizen portal and log in again with your new credentials. Register your PIN and click on the “next” option.
• The next step is to initiate the eTIMS solution you need. Click on the “invoicing (eTIMS) option on the page.
• A terms and conditions page will now be displayed. Read through and click on both boxes to agree to the terms. Now choose the “activate e-invoicing” option.
• Your eTIMS lite version is now ready to use on the device of your choice.

Onboarding steps for VAT registered taxpayers 

If you own a VAT-registered business in Kenya, here are the steps you can follow to onboard to eTIMS smoothly:

• Visit the official eTIMS onboarding portal, etims.kra.go.ke.
• Enter the PIN of your business after choosing the signup option.
• You will get an OTP on your registered mobile number for PIN
• Enter the OTP on the portal to verify your details.
• On the page that now gets displayed, you can set up your credentials by choosing a new password.
• Visit the portal again, and now sign in with your PIN and password.
• Go to the “service request” option. You will see the button, “eTIMS Type” here. Under this, different types of eTIMS software solutions are displayed. Click on the right option.
• Upload the supporting documents (Valid identity proofs of directors, partners, or owners of the business) to complete your application.
• eTIMS Commitment Form with all details filled up properly (you can search under the “publications” section in the KRA portal for this form).
• Choose the submit option to confirm the end of your application process.
• Your application will be sent for review to the KRA. Once an official from KRA approves of the details submitted here, you can install the eTIMS software on your device.

Tips for smooth integration to eTIMS

Here are a few tips for smooth onboarding on eTIMS:

• Understand the registration process thoroughly and submit all the valid documents required for a successful transition. The documents required will change based on the nature of your business.
• If you are unsure of doing the self-onboarding process, visit the nearest KRA branch immediately. An official will help you in the process, thereby saving a lot of time in the bargain.
• Refer to the official portal of KRA for detailed user guides for various types of eTIMS solutions.
• If you face any issue while onboarding to eTIMS, call the KRA helpdesk at one of their support numbers mentioned in the portal. Alternatively, you can also reach out to them through an email. Details of their support can be found here - https://www.kra.go.ke/business/etims-electronic-tax-invoice-management-system/learn-about-etims/etims-contact-and-support-details

The Kenya Revenue Authority has introduced eTIMS for proper recording and submission of electronic invoices. Since it brings discipline to the entire invoicing system in Kenya, all taxpayers (whether VAT-registered or not) must shift to eTIMS. The steps for onboarding are quite simple, and even small businesses can seamlessly integrate into eTIMS if these steps are followed properly.

Coming Soon - eTIMS on TallyPrime

TallyPrime is introducing an eTIMS solution certified by KRA to simplify the invoicing journey for businesses. Our solution can help you upload all transaction-related information in the required format directly to the eTIMS server without leaving the TallyPrime interface. Here's a quick preview of the features you can expect from eTIMS on TallyPrime:

• Real-time invoice upload & management 

Create and submit invoices to the eTIMS portal in real-time and avoid uploading them separately through another interface.

• Create and upload error-free invoices 

Generate authenticated e-Invoices with QR codes. Built-in validation checks will ensure that your invoices are correct before they are uploaded to eTIMS.

• eTIMS Status reports  

TallyPrime’s eTIMS Status report feature will keep you updated on the status of your uploaded transactions.

• Integrated with VAT returns and accounts  

All uploaded transactions on eTIMS are captured within TallyPrime to auto-fill in VAT return forms, update inventory, create insightful reports, etc.