Everything You Need to Know About eTIMS in Kenya

The use of eTIMS in invoicing and the transmission of sales data to the Kenya Revenue Authority has become mandatory. Unfortunately, eTIMS is complicated, and it can be difficult for business people to navigate its use.

This article goes over everything there is to know about eTIMS, including the meaning of eTIMS, the eTIMS registration process, how to download eTIMS Software, and how to use eTIMS lite.

What Is eTIMS And What Is It Used For?

eTIMS is an electronic tax invoice management system designed by the Kenya Revenue Authority (KRA) to allow taxpayers to generate KRA-compliant invoices through the online eTIMS website or software installed on devices such as laptops, Android PDAs, smartphones, or desktop computers.

eTIMS is a free software. It’s meant to be easily accessible and has an eTIMS Lite version that can be accessed via USSD code *222# or via a person’s eCitizen account.

KRA rolled out eTIMS to attain more visibility on transactions and expand the tax base to raise revenue. All businesses are required to use eTIMS to generate their invoices. Failure to comply with this may be construed as tax evasion and result in penalties.

How to Register With eTIMS

To register with eTIMS, you should first determine the most appropriate eTIMS solution for your business. Afterwards, you can sign up for eTIMS on the eTIMS website by creating an account that is associated with your PIN.

After signing up, you can use the website to apply for the specific eTIMS solution you’ll be using.

Types of eTIMS Solutions

KRA designed eTIMS to be widely accessible. To ensure every business owner could use the invoicing system, they rolled out different types of eTIMS solutions:

1. eTIMS Lite (Used Via USSD or eCitizen)

KRA designed this solution for small business owners, including jua kali traders, mama mbogas, and other business people in the informal sector. eTIMS Lite can be accessed via USSD or eCitizen.

eTIMS Lite Via USSD (*222#)

eTIMS Lite can be accessed via the most basic type of electronic device, a feature phone (kabambe). All a business owner has to do is register via the USSD code *222#. After generating an invoice via this code, the business owner receives an SMS that they can forward to their clients as an invoice. The SMS contains a link that the recipient can use to download the invoice as a PDF.

eTIMS Lite Via eCitizen

For businesses that can access the internet, deal in services, and don’t raise many invoices, eTIMS Lite via eCitizen is the best solution. Such businesses may include a home-based caterer or a landlord.

To use eTIMS Lite via eCitizen:

1. Log in to eCitizen.
2. Navigate to the KRA service.
3. Once you’ve accessed the KRA page within eCitizen, navigate to the Invoicing (eTIMS) option through the menu.
4. Sign up, after which you’ll be able to successfully generate invoices

2. eTIMS Online (Used Online Via Web Browsers, No Installation)

eTIMS online is a more advanced solution than eTIMS Lite and is meant for businesses that offer services. Examples include consultancies and law firms.

The advantage of eTIMS online is that you can access it from any device as long as you’re connected to the internet. To register for eTIMS online, go to the eTIMS website.

Unlike eTIMS Lite, the registration process for eTIMS online is not straightforward. You must fill a commitment form, send it to KRA by uploading it on the eTIMS website, and wait for approval. The form must be properly filled, otherwise, your application will be rejected.

Details you need to fill in the eTIMS online commitment form include:

• Company/Business Name
• KRA Personal Identification Number (PIN)
• Physical address
• E-mail address
• Telephone number
• Name and ID number of the business owner or company director
• Physical address, e-mail address, and phone number of the business owner or company director

You can download the eTIMS commitment form here.

Once you’ve downloaded and filled the form properly, you need to upload it via the eTIMS website. You can get a trusted agent to handle this process for you.

3. eTIMS Client (Downloaded and Installed on a Device)

The eTIMS Client solution serves businesses that deal in goods and services or goods only. To use the solution, you must first download and install it onto one of the following devices:

• A laptop
• A smartphone
• A desktop computer
• A personal digital assistant (PDA)
• A point-of-sale (POS) system
• A tablet

After installing the software, you can’t use it without making an application to KRA. To apply, download the eTIMS commitment form and fill it out accurately.

In addition to providing the company and owner details, you’ll need to provide the serial number and model name of the device you’re installing eTIMS on.

Once you sign up for eTIMS Client and install it on a particular device, you can only use that device to generate invoices. Should you damage the device, you must visit a KRA station to get a new eTIMS device. The process of changing an eTIMS device can be cumbersome and involves an interview where KRA agents may ask for details such as your tax filing history.

How to Get the Model and Serial Number of Your Device For the eTIMS Commitment Form

You can get the serial number of a laptop by checking on the bottom side of the laptop. However, sometimes this may not be possible. A reliable way to get the serial number of a laptop is to use the Windows Powershell application.

How to get the serial number of your device for an eTIMS application:

1. On your computer or laptop, press the Windows button. It should bring up the search
   function.
2. Search for Windows Powershell and run the Windows Powershell application.
3. Once the application is running, type in the following command exactly as it is, “WMIC bios get serialnumber”. The application will print out the serial number. Fill it in the application form.
4. Later on, you’ll need this serial number to activate the software.

It’s crucial to fill the accurate serial number in your application form. In case KRA needs access to your eTIMS device, they’ll require the device with the exact serial number you gave during the application.

How to get the model name of your device for an eTIMS application:

1. On your computer or laptop, press the Windows button. It should bring up the search
   function.
2. Search for System Information and run the System Information application.
3. The application should display a list of system properties. Search for the System Model property and copy the corresponding value. Fill this in the application form

4. eTIMS Integration (For Businesses That Use Accounting Software or ERPs)

The fourth and most advanced eTIMS solution is for businesses that already use other software to generate invoices. Such software includes accounting systems like QuickBooks, Enterprise Resource Planning (ERP) systems like Zoho, and Point-of-Sale systems.

Once integrated, the business can continue generating invoices through its preferred software. The sales data will automatically be sent to KRA.

The integration can take around two weeks and can be expensive depending on the scope (eg how many devices are used to generate invoices)

How Much Does eTIMS Integration Cost?

The cost of an eTIMS integration can range anywhere between Ksh 50,000 to hundreds of thousands. Each eTIMS integration is unique and the integrator will review the following factors before sending you an invoice:

• The type of ERP/POS you use
• The number of users
• The number of invoicing points
• The software used to run the database
• Whether the database is shared or standalone
• The existence of APIs for retrieving data such as sales transactions
• The number of control unit devices hosting the ERP/POS
• Whether the ERP/POS is online or offline
• The number of branches
• The available modules

If you need help with eTIMS integration, feel free to contact us.

eTIMS Integration for Software Developers

You may be a software developer who wants to sell eTIMS-integrated software to your clients.

The first thing to note is that only approved integrators can do eTIMS integration. As long as you’re not an approved integrator, you’ll have to partner with an approved integrator. In exchange for an agreed-upon fee, they can facilitate integration for your clients.

The more clients you have, the better you can negotiate.

Using eTIMS

After installing the appropriate eTIMS solution, you still need to do certain things before you can use it. These include:

• Setting up login details. For eTIMS online, you log in with the credentials you used when signing up for eTIMS. For eTIMS client, you must create a new user with a new username and password.
• Adding products. You can’t generate an invoice without first adding products to your eTIMS. For eTIMS online, this is pretty straightforward. For eTIMS client, getting the product code while adding an item can be problematic and you may need to visit a KRA station for help.
• Learn how to generate and download an invoice (ETR). On eTIMS online, you can generate an invoice by navigating to the sales receipt option under the transaction management menu. On eTIMS client, you can do the same under the transaction management menu.
• Learn how to generate and download a credit note. If you make a mistake while generating an invoice, such as using the wrong amount, you can correct that mistake by generating a credit note. You can also generate a credit note when a client returns a product.
• Connect to a printer if you’re using eTIMS client. When using eTIMS client, you can either download your invoices as PDFs or print them. If you need them in PDF format, you need to set up “Print to PDF” as the default printer on your Windows device. Otherwise, you ensure the printer is properly set up.

How to Solve Problems Encountered While Using eTIMS

The eTIMS online solution is very easy to use, and you won’t run into problems. But the eTIMS client solution can be troublesome. If you need help, you can always reach out to us for a virtual consultation at a fee.

Alternatively, you can visit your nearest KRA station or call eTIMS support lines. Note that the calls are charged and you should have enough airtime before you call, otherwise the call can end before your problem is solved. This can be frustrating, especially because you won’t always get a customer service agent who’s available to serve you.

The eTIMS customer support numbers you can call include: 0709012077/0709012730/0709012734/0709012735/0711099999

The Advantages of eTIMS

You Can Use eTIMS to Digitally Track Inventory

eTIMS Client comes with in-built inventory management. You can add stock and deductions are made automatically every time you make a sale.

This can help you digitalize your stock management without paying for software.

eTIMS Simplifies Return Filing

eTIMS captures business transactions and transmits them to KRA automatically, which makes the process of tax filing easier.

For businesses that have the value-added tax (VAT) obligation, the concept of autopopulated returns simplifies the monthly VAT tax filing process.

eTIMS Compliance Helps Win Business

If you can’t provide an eTIMS invoice, most businesses won’t do business with you since they need to prove their expenses while filing tax.

eTIMS compliance can give you an edge over competitors who are yet to comply.

eTIMS Is Cost-Effective

As opposed to previous tax invoice management solutions, eTIMS is free. You don’t have to pay any installation fee and there are no monthly costs unless you’re integrating eTIMS with a third-party accounting or ERP software.

Frequently Asked Questions About eTIMS

What Happens If I Lose or Damage My Registered eTIMS Device?

If you sell goods and are VAT registered, the appropriate solution for you is eTIMS client, which you will download and install on a device (laptop, desktop, tablet, smartphone). Once you install the software and activate a device, you can’t use any other device to generate KRA-compliant invoices for your business.

If you lose or damage your registered eTIMS device, you must visit your KRA station and apply for a change of device. The resulting process includes an assessment of your tax compliance and KRA agents will ask you a range of questions before they can approve the change. After approval, they will help you register a new device.

How Do I Install eTIMS on My Laptop?

To install eTIMS on your laptop, you must download the software. However, you can’t use the software for business invoicing without getting approval from KRA. You must download and fill the eTIMS commitment form and make the application via the eTIMS website.

Once you visit the eTIMS website, you should sign up if you’ve never used it before. Afterwards, you can log in and make the application.

If you’ve filled the form correctly, your application will be approved and you’ll receive a confirmation text to your registered phone number. This text contains one-time login details which you’ll use to log in and create a user account, after which you can use eTIMS.

Challenges you can encounter in the registration process include:

• Having an outdated phone number on the KRA database. Since you need to receive the one-time login details. you must update your phone number through the KRA iTax platform and have this migrated to the eTIMS database.
• Your details could be missing on eTIMS due to a delay in migration from the KRA database. This is a KRA problem and can be solved by submitting a data migration request.

You can solve registration challenges by visiting a KRA station or contacting GVL.

How Do I Make a Sale on eTIMS?

To make a sale on eTIMS online, log in to the eTIMS website and click on the “Sales Receipt” option under Sales Management. You’ll see a button labelled “Add” on the bottom right. Click on it and fill in the details of the sale, including the product, the customer, and the amount.

Who Is Exempted from eTIMS In Kenya?

Nobody is exempted from eTIMS in Kenya. eTIMS is mandatory and all businesses are required to generate invoices through eTIMS. However, there are certain business costs that don’t have to be backed by eTIMS invoices, including:

• Emoluments
• Imports
• Investment allowances
• Interest
• Air passenger ticketing

How Do I Log Into My eTIMS Account?

To log in to your eTIMS account, go to the eTIMS website and enter your KRA PIN and the password you set when signing up. If your business is registered as a company, you’ll need to use the KRA PIN of the company to sign up.

How Do I Register for ETR?

ETR stands for electronic tax receipt and is commonly used to refer to the sales receipt generated by thermal printers connected to TIMS devices. TIMS (Tax Invoice Management System) was the predecessor of eTIMS. To use TIMS, you had to buy a device that recorded your sales offline and transmitted them to KRA servers when you connected to the internet.

After the introduction of eTIMS, you can register for ETR by registering for the most appropriate eTIMS solution.

How Do I Generate an ETR on eTIMS?

To generate an ETR on eTIMS, you simply need to generate a sales receipt (invoice) and download it. If you have eTIMS client and you need to issue physical invoice, you can configure your

How Do I File VAT Returns on eTIMS?

With eTIMS, VAT returns are prepopulated. As a business, every time you buy a vatable input from a supplier, they should issue you with a valid eTIMS sales receipt (ETR). The receipt should indicate your KRA PIN and the VAT you paid to that business.

It’s crucial to ensure your PIN is captured every time you buy a vatable input. This way, when you file your input VAT, KRA will accept it. If the supplier doesn’t capture your PIN for a transaction, you can’t claim the VAT on that transaction.

While filing monthly VAT, when you download the Microsoft Excel sheets on iTax, they’ll be prepopulated with data that your suppliers transmitted to KRA through eTIMS or TIMS.

It’s also crucial to ensure the eTIMS invoices you receive from your suppliers are valid.

How Do I Confirm the Validity of an eTIMS Invoice?

You can confirm the validity of an eTIMS invoice using two methods.

How to confirm the validity of an invoice by scanning the QR code:

1. Locate the QR code on the eTIMS invoice.
2. Use a QR code scanner on your phone to scan the QR code.
3. If the invoice is valid, scanning the QR code should direct you to a page on the KRA website with all relevant details about that transaction.

How to confirm the validity of an invoice using the invoice number:

1. On the invoice, trace the invoice number at the top right corner. It should look like this: KRACU0300054176/1
2. Accurately copy the invoice number.
3. Go to the iTax KRA platform and navigate to the invoice number checker on the home page.
4. Paste the invoice number and validate it.
5. If the invoice is valid, clicking the validate button should direct you to a page on the KRA website showing all the details of that transaction.

Where Do I Get eTIMS in Kenya?

You can get eTIMS in Kenya from the official Kenya Revenue Authority’s website. eTIMS is a free software that anyone can download and use. Click here to download any of the eTIMS versions.

What Are the Minimum Requirements for eTIMS?

A universal requirement for you to use eTIMS is that you must be a business that generates invoices. Additionally, you must meet the following requirements for different scenarios.

If you’re installing eTIMS client on a computer:

• You must be using Windows (eTIMS is not compatible with MAC)
• The computer must have a minimum of 2GB RAM
• The computer must have a minimum of 20 GB free on the hard disk.

If you’re installing eTIMS client on an Android device:

• You must have Android version 8 or higher
• You must have more than 8GB of internal storage

Who Is Eligible for eTIMS In Kenya?

Anyone who runs a business in Kenya and issues invoices is eligible for eTIMS. More importantly, it is mandatory for all business invoices issued in Kenya to be generated via eTIMS. Failure to do so may be viewed by KRA as tax evasion.

What Is the Difference Between eTIMS and TIMS?

Tax Invoice Management System (TIMS) is the predecessor of eTIMS (eletronic TIMS). For a business to use TIMS, it had to own a TIMS device. These devices were costly, ranging anywhere from Ksh 40,000 to Ksh 100,000.

On the other hand, eTIMS has numerous accessibility options, from feature phones to the eTIMS website. You don’t have to buy any specially-made device to use eTIMS.

Furthemore, most eTIMS solutions are free. You only incur a cost when you get the assistance of a third party with integration or onboarding.