The Kenya Revenue Authority (KRA) has outlined a detailed step-by-step guide on how taxpayers can use the electronic Tax Invoice Management System (eTIMS) online portal to register items, issue sales receipts, and process credit notes as part of its ongoing digital tax compliance system.
eTIMS is a software solution developed for tax invoicing. It can be accessed on various electronic devices, including computers, laptops, tablets, smartphones, and Personal Digital Assistants (PDAs).
All persons engaged in business are required to onboard eTIMS and issue electronic tax invoices.
However, where the supply is received from a small business enterprise (whose annual turnover does not exceed five million shillings), the purchaser shall issue a tax invoice on their behalf.
KRA has made the buyer-initiated invoicing solution accessible via ecitizen.kra.go.ke, enabling users to issue an invoice on behalf of a small trader.
Whether you’re a small business owner, a freelancer, or a large corporation, learning how to generate an eTIMS invoice is essential for staying compliant in Kenya’s tax landscape.
This guide will take you through the step-by-step process of generating an eTIMS invoice.
KRA eTIMS: Step-by-Step Guide to Registering Items and Issuing Invoices
Under the system, taxpayers must first log in with their KRA PIN (UserID) and password on the portal etims.kra.go.ke.
Once logged in, users access a new menu bar where item management functions become available.
Taxpayers are then required to search for item classification by selecting the “Search Item Classification” option, followed by searching the United Nations Standard Products and Services Code (UNSPSC).
Users must enter the name of the service they offer under the category field and search for the relevant classification code.
After identifying the correct code, taxpayers should proceed to the “Search Registered Item” section and click the Register button to add their item or service into the system.
They are then required to fill in the item registration form and save the details. A confirmation prompt appears, and users must confirm to complete the registration process.
Those registering multiple items can repeat the same process.
Once items are successfully added, users can expand the registered class code using the “+” button to view details of the registered services.
Also Read: KRA Extends Working Hours For Kenyans to File Returns Ahead of Deadline
Generating a Sale and Downloading Invoice Receipt
To generate a sale, taxpayers navigate to the Transaction Management section and select “Sales Receipt.”
They then click the add button to begin a transaction and input the required sales information.
Users are also required to search for the registered item in the item list, enter the quantity, and indicate any applicable discount before saving the transaction.
Once completed, a receipt number is generated, which can be selected to display a pro forma invoice.
To download the receipt or invoice, users click the receipt option to generate the final document and complete the sales process.
Also Read: KRA Advises Taxpayers on What to Do After eTIMS Tax Return Rejections
The system also allows users to issue credit notes. To do this, taxpayers select the relevant invoice number under processed transactions and indicate whether it is a partial or full credit note.
Users are then required to provide a reason for issuing the credit note and save the entry. Once completed, the system confirms that the credit note has been successfully raised.
