What KRA’s eTIMS Rules Mean for Your Business

ACCOUNTING, TAXATION

Kenya’s new eTIMS rules require all businesses to use eTIMS invoices that are fully transmitted to KRA with the buyer’s PIN. If an invoice isn’t on eTIMS or doesn’t include your PIN, KRA may reject your input VAT or disallow the expense. To stay compliant, businesses must collect correct eTIMS invoices from suppliers, reconcile them monthly, update bookkeeping processes, and avoid paying suppliers who don’t issue proper eTIMS invoices.

Here’s what KRA’s eTims rules mean for you

This applies to:

Invoices you issue to customers
Invoices you receive from suppliers

For KRA to accept an expense or allow you to claim input VAT, the invoice must:

Be an eTIMS invoice, and
Be transmitted to KRA with your PIN as the buyer.

If either of these is missing, KRA may reject the expense.

Why the buyer PIN matters

KRA uses the buyer PIN to match:

The supplier’s invoice → to you, and
Your VAT return → to the invoice

If your PIN is not on the invoice, KRA won’t see you as the buyer even if you actually paid the amount.

What happens if your invoice is NOT linked to your PIN?

Supplier didn’t include your PIN

You cannot claim input VAT and KRA may disallow the expense.
Ask the supplier to correct and re-transmit.

Supplier issues a manual or handwritten receipt

KRA will not accept it for VAT.
It may also be rejected as an expense unless it falls under a rare exception.

Wrong PIN or spelling mistakes

KRA will not match the invoice to your account.
Supplier must correct and resend.

Supplier not onboarded to eTIMS

Until they join eTIMS and transmit the invoice correctly, KRA may reject your VAT and expense claim.

What this means for bookkeeping

eTIMS changes the normal bookkeeping process.
From now on:

Only book expenses that have eTIMS support

Before claiming VAT or recording an expense, check that the supplier sent an eTIMS invoice with your PIN.

Reconcile your books to eTIMS records

Every month, match:

Your list of expenses
Supplier eTIMS invoices
KRA’s eTIMS records

Any missing invoice must be followed up immediately.

Update your accounting templates

Add new fields like:

eTIMS invoice number
Transmission reference
Buyer PIN
Transmission date

Put pressure on suppliers

Tell your suppliers to only share eTIMS invoices that are linked to your PIN before paying them.

This keeps you safe from rejected claims later.

eTims rules checklist

Make sure you are on eTIMS.
If you issue invoices, register or integrate your system.
Share your PIN with suppliers.
Tell them they MUST put your PIN on the eTIMS invoice.
Ask for eTIMS invoices before paying.
Don’t accept manual receipts.
Reconcile monthly.
Match your ledger to eTIMS reports.
Train your team.
Let them know VAT and expenses can be rejected if not linked to your PIN.

Following the rules protects your business and keeps your books clean.

Conclusion

Staying compliant with KRA’s eTIMS rules can feel confusing, especially with changing requirements and tight deadlines. Zidika Consulting helps Kenyan businesses navigate such updates with ease. We offer hands-on support in bookkeeping, eTIMS compliance and monthly accounts reviews. Whether you’re a small business or a growing SME, we make sure your records are clean, compliant and ready for any KRA audits so you can focus on running your business.