How to Activate & Use eTims in Kenya- 2024 Step by Step Guide

In 2023, KRA reshaped how businesses approach deductions, payments, assessments & VAT declarations by introducing etims in Kenya.

From then it became mandatory for all businesses, including those not registered for VAT to electronically generate and transmit their invoices to KRA through the eTIMS platform.

This comprehensive guide will equip you with everything you need to know about eTims in Kenya.

We’ll delve into what it is, the various solutions available, its numerous benefits, and the step-by-step process for registration, invoice generation, and even printing.

By the end of this blog post, you’ll be confident in navigating eTims and ensuring your business stays compliant with Kenyan tax regulations.

Table of Contents

What is eTims in Kenya?

eTims stands for Electronic Tax Invoice Management System. In simpler terms, it’s a software solution designed to streamline the process of issuing electronic tax invoices for businesses in Kenya.

Think of it as a digital upgrade from the old system called Tims. With eTims, you can generate invoices electronically, ensuring accuracy, security, and improved record-keeping.

Furthermore, eTims integrates seamlessly with the KRA systems, allowing for efficient tax filing and reducing the risk of errors.

Types of eTims Solutions Available in Kenya

One of the biggest advantages of eTims is its flexibility. KRA recognizes that businesses come in all shapes and sizes, with varying needs and technical capabilities.

To cater to this diversity, eTims offers a range of solutions:

eTIMS Lite (Web): This user-friendly web application allows you to generate e-invoices directly through a web browser. No software download is required, making it a convenient option for businesses on the go.
eTIMS Lite (USSD): This innovative solution leverages USSD technology, allowing you to generate basic e-invoices using your mobile phone. This is a game-changer for micro-businesses and those operating in remote locations with limited internet access.
eTIMS Taxpayer Portal: This is the central hub of your eTims experience. It’s a web-based portal that allows you to manage your eTims account, access various functionalities, and monitor your e-invoice activities.
eTIMS Client: This downloadable software is ideal for businesses that prefer a desktop application for invoice generation. It offers all the core functionalities of eTims and can be installed on your computer.
Virtual Sales Control Unit (VSCU): This advanced solution is designed for businesses with high transaction volumes. It allows for integration with your existing invoicing or Enterprise Resource Planning (ERP) system, enabling seamless data transfer and automated invoice generation.
Online Sales Control Unit (OSCU): This cloud-based version of the VSCU offers similar functionalities but eliminates the need for software installation. It’s a perfect option for businesses that prefer a web-based solution for managing their e-invoices.

By offering a variety of solutions, eTims ensures that every business in Kenya, regardless of size or technical expertise, can benefit from this efficient and user-friendly system.

Benefits of Using eTims in Kenya

There are numerous compelling reasons for Kenyan businesses to embrace eTims. Here’s a breakdown of the key advantages:

Simplified Tax Compliance: One of the most significant benefits of eTims is the simplification of tax compliance. Gone are the days of manually managing paper invoices and battling data entry errors. With eTims, all your electronic invoices are stored securely within the system, readily accessible for tax filing purposes. This eliminates the risk of misplaced invoices and ensures you have a clear audit trail for the KRA.
Reduced Costs: eTims is a free-to-use software solution offered by the KRA. This translates to significant cost savings for businesses, particularly those that previously relied on buying expensive ETR Machines. By eliminating these expenses, eTims allows you to invest your resources in other areas of your business.
Flexibility for Businesses: As mentioned earlier, eTims offers a variety of solutions to cater to diverse business needs. Whether you’re a small startup or a large corporation, you’ll find an eTims solution that perfectly aligns with your requirements. This flexibility ensures that businesses of all sizes can leverage the advantages of eTims.
Improved Record Keeping & Inventory Management: eTims acts as a centralized hub for your electronic invoices. This eliminates the need for physical storage of paper invoices, reducing clutter and improving organization. With all your invoices readily accessible within the system, you can easily track sales trends, analyze inventory levels, and make informed business decisions.
Potential Tax Deductions: Using eTims for your invoicing needs may qualify you for certain tax deductions. It’s always advisable to consult with a registered tax advisor to explore the potential tax benefits associated with eTims adoption.
Attracting New Business: In today’s digital age, customers increasingly value transparency and ethical business practices. By demonstrating your commitment to tax compliance through eTims usage, you can build trust and credibility with potential clients. This can be a significant advantage in attracting new business and establishing yourself as a responsible and reliable organization.

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How to Register for eTims in Kenya

Now that you understand the benefits of eTims, let’s walk you through the registration process. Here’s a step-by-step guide to get you started:

1. Visit the eTims Taxpayer Portal:

Open your web browser and navigate to the official eTims Taxpayer Portal: https://etims.kra.go.ke/. This is the central online platform for all your eTims activities.

2. Sign Up for an Account:

Click on the “Sign Up” button located on the homepage.
Enter your valid KRA PIN (Kenya Revenue Authority Personal Identification Number) in the designated field.
You’ll receive a One-Time Password (OTP) on your mobile number registered with iTax. This is a security measure to verify your identity.
Enter the received OTP in the designated field on the sign-up page.
Create a strong password for your eTims account. Remember to choose a complex password that combines uppercase and lowercase letters, numbers, and symbols. Avoid using easily guessable information like your birthday or name.

3. Log In to Your Account:

Once you’ve successfully created your account, return to the eTims Taxpayer Portal homepage.
Enter your KRA PIN and the password you created during registration in the designated login fields.
Click the “Login” button to access your eTims dashboard.

4. Select Your Preferred eTims Solution:

Upon logging in, you’ll be presented with a user-friendly dashboard. Locate the section for “Service Request” and click on it.
Here, you’ll see a list of available eTims solutions. As discussed earlier, these solutions cater to different business needs. Carefully review the descriptions of each solution to determine the most suitable option for your business.

5. Upload Required Documents:

Once you’ve chosen your preferred eTims solution, you’ll be prompted to upload specific documents for verification purposes. The required documents will vary depending on your business structure:
- Sole Proprietorship: You’ll need to upload a clear copy of your valid Kenyan national identification card.
- Partnership: A copy of the partnership deed will be required.
- Company: Upload a copy of the Certificate of Incorporation or any other relevant registration document.

6. Submit Your Application:

After uploading the necessary documents, carefully review your application to ensure all information is accurate and complete.
Once satisfied, click the “Submit” button to send your eTims registration application to the KRA.

7. Application Approval:

The KRA will review your application and supporting documents. This process typically takes a few business days. You’ll receive a notification via email or SMS once your application is approved.

Congratulations! You’re now officially registered for eTims in Kenya. The next section will guide you through generating invoices using your chosen eTims solution.

How to Generate Invoices with eTims in Kenya

Now that you’re registered for eTims and have chosen your preferred solution, it’s time to explore how to generate electronic invoices.

It’s important to remember that the specific steps involved may vary slightly depending on the chosen solution (eTims Client, eTims Web Portal, eTims Lite (Web), or eTims Lite (USSD)).

However, we’ll provide a general overview of the process for eTims Lite (Web)

1. Access Your eTims Account:

Launch your chosen eTims solution. This could involve logging in to the eTims Taxpayer Portal for web-based solutions or opening the downloaded eTims Client software for the desktop application. For eTims Lite (USSD), simply dial the designated USSD code on your mobile phone.

2. Locate the Invoice Generation Feature:

Once you’ve accessed your eTims account, navigate to the section for creating invoices. This might be labeled “Invoice Generation,” “Issue Invoice,” or something similar. The exact terminology may vary depending on the chosen solution.

3. Enter Invoice Details:

The invoice generation section will provide a form for entering all the necessary invoice details. Here’s a breakdown of the typical information required:
- Customer Information: Enter the name and contact details of your customer, including their tax identification number (if applicable).
- Invoice Details: Provide a unique invoice number, invoice date, and due date for payment.
- Product or Service Details: Clearly list the products or services you’re invoicing for. For each item, include a description, quantity, unit price, and any applicable taxes.
- Payment Terms: Specify your payment terms, such as cash on delivery, net 30 days, etc.

4. Preview and Finalize Invoice:

Once you’ve entered all the necessary details, carefully review the invoice for accuracy. Ensure all information is correct, including pricing, quantities, and tax calculations. Most eTims solutions offer a preview function that allows you to see how the final invoice will appear before finalizing it.

5. Generate and Save the Invoice:

Once you’re satisfied with the invoice details, proceed with generating the electronic invoice. The specific method for doing this will vary depending on the chosen solution. Generally, there will be a button labeled “Generate Invoice” or “Save Invoice.”

Here are some additional points to consider:

Saving vs. Sending: Some eTims solutions may offer the option to save the generated invoice as a PDF file for your records. Alternatively, you might be able to send the invoice electronically directly to your customer’s email address within the eTims platform.
Integration with Existing Systems: For solutions like the VSCU, there might be functionalities for integrating your eTims with existing accounting or ERP software. This allows for automatic data transfer and streamlined invoice generation. Consult the eTims user manuals or contact the KRA for specific information on integration possibilities.

How to Print eTims Invoices in Kenya

While eTims primarily focuses on digital invoicing, there might be situations where you need a physical copy of an invoice. The process for printing an eTims invoice will depend on the chosen solution you’re using:

Web-Based Solutions (eTims Taxpayer Portal & eTims Lite (Web))

Generate and Preview the Invoice: Follow the steps outlined in the previous section on generating invoices with eTims. Once you’ve finalized the invoice details and reviewed the preview, proceed to the next step.
Printing Options: While specific functionalities may vary, some web-based eTims solutions might offer a direct print option within the invoice generation window. Look for a button labeled “Print” or a printer icon. Clicking on this option should initiate the printing process through your default web browser settings.
Alternative Printing Method: If a direct print option isn’t available, you can save the generated invoice as a PDF file. Most web browsers allow you to save the displayed webpage as a PDF document. Once saved, you can then open the PDF file using your computer’s PDF reader application and print it from there.

Desktop Application (eTims Client)

Generate the Invoice: Following the same process as with web-based solutions, generate the invoice within the eTims Client software.
Printing Function: The eTims Client software might have a built-in printing function. Look for a menu option labeled “File” or “Print” and select the appropriate command to print the invoice directly from the application.
Alternative Printing Method: Similar to the web-based solutions, you can also export the generated invoice as a PDF file within the eTims Client software (if the option is available). This allows you to print the invoice using your computer’s PDF reader.

Mobile Solution (eTims Lite (USSD))

Since eTims Lite (USSD) is a mobile phone-based solution with limited functionalities, generating a printable invoice might not be directly possible. This USSD solution is primarily designed for basic invoice creation on the go.

Here are some additional tips for printing eTims invoices:

Ensure Proper Printer Setup: Before attempting to print, make sure your printer is properly connected to your computer and has sufficient ink or toner cartridges.
Paper Selection: Use plain white paper of appropriate size for printing invoices.
Print Quality: For professional-looking invoices, choose a good print quality setting on your printer.
Save Copies: It’s always a good practice to save a digital copy of the invoice (as a PDF) for your records, even if you print a physical copy.

Remember: While this guide provides a general overview of printing eTims invoices, it’s advisable to consult the user manuals or help resources specific to your chosen eTims solution for detailed instructions on printing functionalities. The KRA website might also offer helpful information on using different eTims solutions.

FAQs About eTims in Kenya

1. What’s the difference between Tims and eTims?

Tims stands for Tax Invoice Management System. It was the older system used by the KRA for invoice management. eTims, or Electronic Tax Invoice Management System, is the new and improved digital version. eTims offers greater efficiency, security, and convenience compared to the traditional Tims system.

2. How much does eTims cost?

One of the significant advantages of eTims is that it’s a free-to-use software solution offered by the KRA. There are no licensing fees or any additional costs associated with using eTims.

3. Who is exempt from using eTims?

Currently no business is exempted from using eTims. Both VAT & Non VAT Regitered are required to comply and onboard eTims.

4. Who needs to use eTims?

According to the current regulations, all businesses registered with the KRA are required to use eTims for issuing electronic tax invoices. This includes businesses of all sizes, from small startups to large corporations.

5. How do I activate my eTims account?

Activating your eTims account simply involves registering for an account on the eTims Taxpayer Portal: https://etims.kra.go.ke/. The registration process is free and straightforward, as explained in the “How to Activate & Use eTims in Kenya for 2024: A Step-by-Step Guide” article above.

6. How do I create an invoice on eTims?

The specific steps for creating an invoice will depend on the chosen eTims solution you’re using (eTims Client, eTims Web Portal, eTims Lite (Web), or eTims Lite (USSD)). However, we’ve provided a general overview of the process in the “Generating Invoices with eTims in Kenya” section earlier in this guide.

7. How do I verify an eTims receipt?

Every eTims generated invoice contains a unique QR code and invoice number. These features allow recipients to verify the authenticity of the invoice and prevent fraudulent activities.

The recipient can scan the QR code using a QR code reader app on their smartphone, which will typically link them to the KRA website for verification purposes.

8. When was eTims introduced?

The eTims system was introduced by the KRA in 2023. It marked a significant step towards digitalizing tax processes and streamlining invoice management for businesses in Kenya.

9. What is the phone number for KRA eTims customer care?

The KRA provides a dedicated phone line for eTims customer care. You can reach them at the following numbers: 0709 016 995, 0709 017 719, 0709 017 731, 0709 017 718, 0709 017 724, 0709 017 735. These representatives can answer your questions and provide assistance with using eTims.

10. How do I register for eTims in Kenya?

The registration process for eTims was covered in detail in the “How to Activate & Use eTims in Kenya for 2024: A Step-by-Step Guide” article. We recommend referring back to that article for a comprehensive guide on registering for your eTims account.

Final thoughts on eTims compliance in Kenya

The implementation of eTims in Kenya represents a significant step forward for businesses and the Kenyan tax administration.

While navigating a new system might involve an initial learning curve, the long-term advantages of eTims are undeniable.

We encourage you to explore the eTims system further. The KRA website offers a wealth of resources, including user manuals, tutorials, and FAQs, to guide you through the process.

If you have specific questions on the implications of the launch of the eTIMS to your business, please reach out to us through the contact us page

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