What eTIMS is, who must use it, why expenses without eTIMS invoices are at risk, and how to connect — for Kenyan business owners and finance teams.
eTIMS — the electronic Tax Invoice Management System — is how the Kenya Revenue Authority (KRA) receives tax invoices from businesses. When you issue an invoice through eTIMS, KRA gets a copy in real time, and the invoice carries KRA’s details and a QR code your customer can use to verify it.
Every person carrying on business in Kenya must issue tax invoices through eTIMS — not only VAT-registered businesses. That includes sole proprietors, partnerships and companies below the VAT threshold.
If you are not VAT-registered, you still issue eTIMS invoices — they simply do not charge VAT.
Under the Income Tax Act, as amended by the Finance Act 2023, a business expense is generally only deductible if it is supported by an eTIMS invoice. A few items are excluded — for example salaries and wages, and imports supported by customs documents. KRA now compares the income and expenses declared in tax returns with eTIMS invoice data, so unsupported expenses are more likely to be flagged and disallowed.
In practice that means two things: ask every supplier for an eTIMS invoice, and record the invoice number when you post the bill.
| Option | Best for |
|---|---|
| eTIMS Lite (web and USSD) | Manual invoicing for very small businesses |
| eTIMS client software | Desktop or mobile app from KRA for low volumes |
| Online / Virtual Sales Control Unit (OSCU / VSCU) | System-to-system integration for accounting, ERP and POS software — invoices go to KRA automatically |
If you already invoice from accounting software, an integrated option saves retyping and keeps your records in one place. ETaxFlow’s eTIMS integration sends invoices and credit notes to KRA as you issue them.
Kenya’s standard VAT rate is 16%, and registration is compulsory once taxable supplies reach KES 5 million in 12 months. VAT returns are filed monthly on iTax by the 20th of the following month. Because KRA already holds your eTIMS sales data, your declared sales need to match it — another reason to invoice from the same system that prepares your return. Try the Kenya VAT calculator.
Yes. Every person carrying on business must issue tax invoices through eTIMS, whether or not they are registered for VAT.
Generally no. Business expenses must be supported by eTIMS invoices to be deductible, apart from some excluded items such as salaries and imports supported by customs documents.
KES 5 million of taxable supplies in any 12-month period.
Monthly, by the 20th of the following month, on iTax.