In Kenya, the Electronic Tax Invoice Management System (eTIMS) was introduced to streamline and enhance the efficiency of the invoicing process for businesses. The implementation of eTIMS is part of the Kenya Revenue Authority’s (KRA) broader strategy to digitize tax-related processes and reduce tax evasion. This guide aims to provide businesses with a step-by-step approach to generating eTIMS compliant invoices.
eTIMS is a web-based platform designed to facilitate the generation, submission, and management of electronic tax invoices. It is mandatory for registered taxpayers, and failure to comply may result in penalties and fines. eTIMS aims to enhance transparency, reduce paperwork, and ensure accuracy in the invoicing process.
Generating eTIMS Compliant Invoices
- Register for eTIMS: Before you can start generating eTIMS compliant invoices, ensure that your business is registered on the eTIMS platform. You can register by visiting the KRA iTax portal (https://itax.kra.go.ke/) and following the registration process.
- Login to the eTIMS Portal: After successful registration, log in to the eTIMS portal using your credentials. This will give you access to the invoicing features and functionalities.
- Enter Invoice Details: Fill in the required details for your invoice. This includes the supplier’s details, buyer’s details, invoice date, invoice number, and a description of the goods or services being provided.
- Attach Supporting Documents: eTIMS allows you to attach supporting documents, such as delivery notes or purchase orders, to your invoice. Make sure these documents are in the acceptable format (PDF, JPEG, or PNG) and comply with the KRA’s guidelines.
- Validate Invoice Details: Before submitting the invoice, validate all the details to ensure accuracy and compliance with eTIMS requirements. Verify that the invoice amounts and tax calculations are correct.
- Generate eTIMS Compliant QR Code: One of the key features of eTIMS is the inclusion of a QR code on the invoice. Generate the QR code through the eTIMS portal, ensuring that it contains the necessary information required by the KRA.
- Submit the Invoice: Once all details are accurate, submit the invoice through the eTIMS portal. After submission, the system will generate a unique Invoice Reference Number (IRN) and confirm the successful submission.
- Keep a Record: Maintain a record of all eTIMS compliant invoices, including the IRN, for future reference. This will be useful during audits or if you need to make corrections or amendments.
Adopting eTIMS compliant invoicing practices is crucial for businesses in Kenya to remain compliant with tax regulations. The eTIMS platform not only facilitates efficient invoicing processes but also contributes to the broader goal of creating a transparent and digitized tax environment. By following the steps outlined in this guide, businesses can ensure seamless integration into the eTIMS system and avoid potential penalties associated with non-compliance.