eTIMS Compliance Guide
for Kenyan Businesses

What is eTIMS?

eTIMS (electronic Tax Invoice Management System) is KRA's platform for generating, transmitting and storing electronic tax invoices in real time. It replaced the previous Electronic Tax Register (ETR) system and went fully live for all VAT-registered taxpayers from January 2024, with enforcement intensifying into 2025 and 2026.

Every taxable sale must now generate an eTIMS-compliant invoice that is transmitted to KRA in real time. Input tax claims will only be allowed for purchases backed by a valid eTIMS invoice from a registered supplier.

Who Must Register?

• All VAT-registered businesses in Kenya
• Businesses with annual turnover above KES 5 million (VAT registration threshold)
• Non-resident suppliers of digital services (B2C)
• Businesses applying for VAT exemptions or zero-rating

eTIMS Integration Options

Method	Best For	Technical Complexity
eTIMS Online Portal	Micro businesses with low transaction volumes	Low
eTIMS Mobile App (VSCU)	Small businesses and sole traders on the go	Low
eTIMS Desktop (OSCU)	SMEs with moderate volumes and own systems	Medium
API Integration	Medium to large businesses with ERP or POS systems	High
Bulk Invoice Upload	Businesses issuing many invoices offline	Medium

Step-by-Step: Getting eTIMS Compliant

1. Register on iTaxLog into your iTax account and navigate to the eTIMS module. Confirm your business details and select your preferred integration method.
2. Obtain your eTIMS device or API credentialsDepending on your chosen method, download the app, configure the desktop client, or obtain API credentials from KRA's developer portal.
3. Configure your invoice templatesSet up your invoice template with all required fields: business name, KRA PIN, buyer PIN (where applicable), description, quantities, unit price, VAT amount and total.
4. Test before going liveUse KRA's sandbox environment to test your integration and confirm invoices transmit correctly before processing real transactions.
5. Go live and monitor submissionsBegin issuing eTIMS-compliant invoices for all taxable sales. Monitor your eTIMS dashboard regularly to ensure all invoices are successfully received by KRA.
6. Reconcile monthly with your VAT returnBefore filing your monthly VAT return, reconcile your eTIMS invoice data with your internal records. Discrepancies are a common audit trigger.

Common eTIMS Compliance Mistakes

• Issuing manual or non-eTIMS invoices for taxable sales after the compliance deadline
• Failing to transmit invoices in real time (batch uploads must occur within the same day)
• Incorrect buyer PIN on B2B invoices, causing recipient to lose input tax entitlement
• Not reconciling eTIMS data with VAT returns before filing
• Registering on eTIMS but continuing to use old ETR machines

Penalties for Non-Compliance

Under the Tax Procedures Act, failure to issue tax invoices as required attracts a penalty of KES 1 million or 10% of the tax involved — whichever is higher. In addition, disallowed input tax, audit assessments and interest on late payments can significantly compound the financial exposure.