1. What is eTIMS in Kenya?
eTIMS stands for Electronic Tax Invoice Management System. It is a cloud-based software introduced by the Kenya Revenue Authority (KRA) to make it easy for VAT-registered businesses to connect their accounting platform with KRA without having to buy expensive electronic tax register devices.
2. Why was eTIMS introduced in Kenya and why did it replace TIMS?
eTIMS was introduced to reduce paper-based tax invoice management systems, to make process more efficient, accurate, and compliant with tax regulations. TIMS was complicated and expensive and many businesses faced challenges using the ETR devices.
3. Who should start using eTIMS in Kenya?
All types of businesses across all sectors, including informal sector, whether or not they are registered for VAT should use eTIMS in Kenya. Individuals with income tax obligations also must use eTIMS to issue and send electronic tax invoices.
4. How should I register and onboard for eTIMS in Kenya?
Download the commitment form for eTIMS and fill this out appropriately. Then sign up on the eTIMS portal and make an application for the software that you prefer. Please note that you will be able to select only one software. Once this is done, the KRA officers will process your application and decide based on the nature of your business, your frequency of invoicing, the availability of computing devices and internet connection with you. Once all of this is done, the KRA officer schedules a time and date to set this up and to train you.
5. How does eTIMS benefit businesses in Kenya?
eTIMS offers real-time tax invoice processing. It is flexible, easy to integrate, and automate. It helps reduce errors, promotes compliance, and lifts off administrative burdens for businesses. It also saves cost and promotes transparency. eTIMS promotes faster VAT refund, improves cash flow management, and reduces audit complications.
6. What devices are compatible with eTIMS? Also does it integrate with existing billing and invoicing systems?
You can access eTIMS on desktop and mobile devices. eTIMS can seamlessly integrate with existing systems through Application Programming Interfaces (APIs), ensuring a smooth transition.
7. Should we get the eTIMS software for a cost?
The eTIMS software, including the online portal and client software, is free of charge. However, if you want to integrate your invoicing system directly with eTIMS, you may incur costs if you choose to work with an approved third-party integrator instead of doing the integration yourself.
8. Why is Kenya following a phased approach for eTIMS implementation?
Phased approach allows businesses to transition gradually from traditional methods to eTIMS while still using their current devices. This minimizes disruption in the regular workflow.
9. What are the potential penalties for non-compliance with eTIMS regulations?
The Kenya Revenue Authority states that non-compliance could lead to VAT refund holds, denial of tax compliance certificates, and other business disruptions.
10. Is eTIMS suitable for small businesses and is it compatible for retail and manufacturing businesses?
Yes, eTIMS is beneficial for businesses of all sizes, offering user-friendly features that enhance operational efficiency and accuracy in tax invoice management. It is also compatible for retail and manufacturing businesses.
11. Can non-resident digital service suppliers use eTIMS voluntarily?
Non-resident digital service suppliers are exempt from eTIMS requirements, but they can choose to use it voluntarily to streamline their tax invoice processes.
12. What are the key compliance aspects of eTIMS for businesses?
The key compliance aspects of eTIMS in Kenya include proper use of electronic tax invoices, accurate reporting, and adherence to VAT Regulations.
13. Are there any ongoing costs associated with eTIMS and does eTIMS offer customer support and training for businesses?
eTIMS eliminates the costs associated with traditional Electronic Tax Register (ETR) devices, resulting in potential cost savings for businesses. Yes, the Kenya Revenue Authority (KRA) provides customer support and training to help businesses effectively use eTIMS. You can reach the customer support at callcentre@kra.go.ke.
14`. Where can businesses get more information about eTIMS and its implementation in Kenya?
Businesses can visit the official website of the Kenya Revenue Authority (KRA) or contact their local KRA office for detailed information and support regarding eTIMS implementation.