KRA introduces eTIMS Lite to simplify tax invoicing for small businesses

The eTIMS Lite platform enables non-VAT registered taxpayers to electronically generate and transmit their invoices to KRA through an easy-to-use interface.

Accessible via the eCitizen platforms, including a USSD option by dialing *222# and a web-based solution at ecitizen.kra.go.ke, the new system aims to alleviate the burden of compliance for small-scale entrepreneurs.

In a statement issued on Monday, KRA emphasized the importance of electronic invoicing for all businesses, regardless of size or sector. By mandating the use of eTIMS, KRA seeks to improve transparency, reduce tax evasion, and enhance overall efficiency in tax collection processes.

"We are committed to supporting taxpayers and ensuring compliance with tax regulations," stated a KRA spokesperson. "Through initiatives like eTIMS Lite and our ongoing engagement with stakeholders, we aim to facilitate a smooth transition to electronic invoicing while providing tailored support to meet the diverse needs of businesses in Kenya."

In addition to the rollout of eTIMS Lite, KRA has invited taxpayers and representative bodies facing challenges with compliance to engage with the authority for further assistance.

One innovative solution highlighted by KRA is the concept of reverse invoicing, where sellers authorize buyers to issue invoices on their behalf, supported by invoices receipts templates for MS Word, providing greater flexibility in invoice management.