eTIMS is cloud-based software that provides taxpayers with technology to conveniently generate and send their VAT invoices to KRA in real time. The Kenya Revenue Authority (KRA) is relying on the rollout of the electronic Tax Invoice Management System (eTIMS) to increase taxpayer compliance and collect an extra $400 billion in Value Added Tax (VAT).
KRA piloted eTIMS in late 2022 to bring the informal sector into its tax bracket and reduce the VAT percent of the potential gap from 38.9 percent to 19.8 percent.
What is eTIMS
eTIMS is cloud-based software that gives taxpayers the ability to file VAT returns electronically via the Internet. The cloud-based software is an upgrade of TIMS (Tax Invoice Management System). It allows VAT-registered businesses to connect their accounting system to KRA without requiring expensive ETR TIMS devices.
The cohesive nature of the eTIMS portal enhances security, efficiency, and convenience when taxpayers are managing their tax affairs. Taxpayers now have a platform to do the following:
- File returns
- Make payments
- Access and manage tax information.
- Track tax compliance status
KRA expects the new system to facilitate compliance by enabling taxpayers to transmit electronic invoices through devices they use every day, such as mobile phones, laptops, and tablets. They can also use an online portal or invoicing systems.
KRA Deputy Commissioner for Medium Taxpayers George Obel revealed that eTIMS was rolled out to complement TIMS after “we learned taxpayers faced challenges moving into the new system. We will minimize the cost of facilitating tax compliance.” Addressing a media sensitization forum, the Deputy Commissioner said eTIMS will increase collections by making all transactions visible to KRA, helping to “solve issues of missing trader invoices and fictitious claims because KRA will see all transactions.”
eTIMS complements the TIMS version that expected businesses to use internet-enabled tax registers (ETRs) to capture and send real-time transactions to KRA. Obel added that the tax collector launched an eTIMS after some taxpayers lamented that high ETRs hindered the adoption of TIMS because of its high cost. The cost of ETRs is between Kes 45,000-120,000.
Electronic Tax Invoice Management System Apps
The procedure to download and install the eTIMS application is through one of the links below, depending on your device.
- eTIMS Multi-Paypoint (Windows) Tooltip text
- eTIMS Paypoint (Windows) Tooltip text
- eTIMS Paypoint (Android) Tooltip text
- eTIMS Lite (VAT) Tooltip text
- eTIMS Lite (non-VAT). Tooltip text
You can also access the platform through an online portal.
How to Register and Use the eTIMS Taxpayers Portal
- Visit the KRA iTIMs website.
- Click on the eTIMS taxpayer portal link and follow the registration instructions.
- Fill in personal details, including your official name, email address, taxpayer identification number, and phone number.
You receive a confirmation email with your login details after a successful registration.
Login to the eTIMS Portal
Log into the KRA portal after receiving a confirmation email.
- Visit KRA’s website.
- Click on the eTIMS taxpayer link.
- Enter your username, enter your password, and click on the login button.
The system directs you to your dashboard to access tax information.
Accessing Tax Information
Find and click the “My Profile” tab on the portal dashboard. You can view and update your tax information. The information includes personal details, your tax obligations, and your filing history.
Filing Tax Returns
- Go to the portalꞌs dashboard and click on the Returns tab.
- Choose the tax return to file.
- Fill in the details.
- Submit immediately, or save the progress to complete the form later.
The portal has a guide on filing each section of the filing form.
Make Tax Payments
The system provides various payment options. You can pay taxes through the bank, mobile money, a debit card, or a credit card. Make a payment using the following steps:
- Click the “Payments” tab on the dashboard.
- Choose the tax obligation to pay.
- Enter amount
- Select your preferred payment method.
- Follow the provided instructions to complete the payment.
Track Tax Compliance Status
You can track tax compliance status on the eTIMS taxpayer portal for real-time updates of tax compliance status, outstanding obligations, or penalties. Track compliance with the following steps:
Go to the “Compliance” tab on the dashboard. The tab contains information on your compliance status.
Take the necessary action if there are outstanding issues.
The taxman makes an effort to make eTIMS convenient for tax affairs by including a helpdesk on the portal. Taxpayers requiring assistance can submit a query, make a request, or get support from a KRA representative. You click on the “Helpdesk” tab on the dashboard for assistance or to find answers to common questions in the FAQ section.
KRA rolled out eTIMS after benchmarking a similar solution in Rwanda. Rwanda’s VAT collection increased significantly after the implementation of the Electronic Billing Machine (EBM). Rwanda’s tax-to-GDP ratio stands at 16.9 percent. VAT accounts for 7 percent. Kenya has a lower tax-to-GDP ratio of 15.3 percent. VAT accounts for 4 percent.