What is eTIMS?
eTIMS (Electronic Tax Invoice Management System) is KRA's digital invoicing platform. It replaces the old ETR (Electronic Tax Register) machines. Every invoice you issue must be validated by KRA in real-time through eTIMS.
Who Must Register for eTIMS?
- All VAT-registered businesses — mandatory
- Businesses earning above KES 5M/year — even if not VAT-registered
- All businesses claiming expense deductions — from January 2024, only eTIMS-validated invoices are deductible
- Freelancers and consultants — if your clients need tax-deductible invoices
How to Register for eTIMS
Option 1: eTIMS Online (for small businesses)
- Log in to itax.kra.go.ke with your KRA PIN
- Go to eTIMS Online Portal
- Click "Register for eTIMS"
- Verify your business details (name, PIN, physical address)
- Select "eTIMS Online" as your invoicing method
- Once approved, you can generate invoices directly from the eTIMS web portal
Option 2: eTIMS via Accounting Software
If you use accounting software (Tally, QuickBooks, Sage, Xero), many now integrate with eTIMS via API. Your software generates invoices that are automatically validated by KRA.
- Tally Prime — eTIMS integration built-in
- QuickBooks Kenya — KRA-approved eTIMS module
- Sage — Direct eTIMS API integration
Option 3: eTIMS USSD (*222#)
For micro-businesses without internet access, KRA offers USSD-based invoicing via *222#. Suitable for small traders who issue a few invoices per day.
How to Generate an eTIMS Invoice
- Log in to eTIMS Online or open your integrated software
- Click "New Invoice"
- Enter buyer details (name, KRA PIN if applicable)
- Add items/services with quantity and price
- Select VAT rate (16% standard, 0% exempt, 8% petroleum)
- Click "Validate & Submit"
- KRA validates in real-time and returns a unique invoice number
- Share the validated invoice with your customer
Penalties for Non-Compliance
- Invoices without eTIMS validation: Not deductible as expenses for the buyer
- Failure to register: KES 100,000 penalty or 10% of tax due
- Issuing non-compliant invoices: Additional penalties per invoice
- Your clients can't claim expenses: Businesses won't buy from non-eTIMS suppliers
Common eTIMS Questions
Do I need eTIMS if I'm a freelancer?
If your clients are businesses that need tax-deductible invoices — yes. Without eTIMS, your invoice is worthless to them for tax purposes.
What if I'm on Turnover Tax (TOT)?
TOT taxpayers (turnover KES 500K–25M) must also register for eTIMS. Use the simplified eTIMS Online or USSD method.
Can I use eTIMS on my phone?
Yes — eTIMS Online works on mobile browsers, and the USSD option (*222#) works on any phone.
How much does eTIMS cost?
eTIMS Online is free. If you integrate via accounting software, the cost depends on the software provider. The old ETR machines are no longer required.