KRA eTIMS POS FAQ
What is KRA eTIMS?
KRA eTIMS (Electronic Tax Invoice Management System) is Kenya Revenue Authority's mandatory electronic invoicing system. All VAT-registered businesses in Kenya must transmit tax invoices electronically to KRA in real time. eTIMS replaced the previous ETR (Electronic Tax Register) system and is now enforced for all businesses.
Who needs to comply with KRA eTIMS?
All VAT-registered businesses in Kenya must comply with KRA eTIMS. This includes retailers, restaurants, supermarkets, pharmacies, wholesalers, service providers, and manufacturers. Non-VAT-registered businesses with annual turnover above KES 5 million are also required to register. The deadline for full compliance has passed, and penalties are actively enforced.
What are the penalties for eTIMS non-compliance?
KRA imposes penalties of up to KES 1 million or 5% of the invoice value (whichever is higher) for each non-compliant invoice. Additionally, non-compliant businesses cannot claim VAT input tax deductions, which effectively increases their tax burden. KRA also conducts audits and can freeze business accounts for persistent non-compliance.
How does EliteTeQ POS handle KRA eTIMS compliance?
EliteTeQ POS generates KRA-compliant electronic tax invoices automatically with every sale. The system transmits invoice data to KRA eTIMS in real time, includes all required fields (PIN, item descriptions, tax rates, totals), and stores confirmation codes. No manual intervention needed. The system works for all payment methods including M-Pesa, cash, and card.
Can EliteTeQ POS generate eTIMS invoices offline?
EliteTeQ POS has offline mode that continues recording sales when internet is unavailable. Invoices are queued locally and automatically transmitted to KRA eTIMS once connectivity is restored. This ensures you never lose a sale and all invoices are eventually transmitted for compliance.
What information is required on a KRA eTIMS invoice?
A KRA eTIMS compliant invoice must include: seller KRA PIN, buyer KRA PIN (for B2B), invoice date and time, sequential invoice number, item descriptions with HS codes, unit prices, quantities, VAT rates (16%, 0%, or exempt), total VAT amount, total invoice amount, and the eTIMS device serial number.
How long does it take to set up eTIMS on EliteTeQ POS?
Setup takes 1-2 hours. You need your KRA PIN, eTIMS registration credentials, and your business details. Our team handles the technical integration, tests invoice transmission, and trains your staff. You can start generating compliant invoices the same day.
Does EliteTeQ POS support both VAT-inclusive and VAT-exclusive pricing?
Yes. EliteTeQ POS supports both VAT-inclusive pricing (common in retail and restaurants where the displayed price includes 16% VAT) and VAT-exclusive pricing (common in B2B transactions). The system automatically calculates and displays VAT correctly on eTIMS invoices regardless of your pricing method.