1. How can organizations procure from remote farmers or suppliers without KRA PINs or eTIMS registration and remain compliant?
Organizations should use buyer-initiated (reverse) invoicing through the KRA eTIMS system, accessible via eCitizen portal or USSD: *222#
The buyer generates the eTIMS invoice on behalf of the supplier by capturing key details such as the supplier’s name, national ID or mobile number, and transaction information.
The supplier then receives an SMS notification and must approve the invoice via USSD (*222#) or eCitizen for it to become valid.
No prior KRA approval is required beyond supplier consent.
Once approved, the invoice is a valid eTIMS document and supports expense recognition and tax deductibility.
2. What happens if a supplier refuses to approve or issue an eTIMS-compliant invoice?
If the supplier neither approves a buyer-initiated invoice nor issues their own eTIMS invoice, the expense will not qualify for tax deduction purposes, as current tax rules require expenses to be supported by valid eTIMS invoices.
To mitigate ongoing compliance risk, organizations should consider:
- Engaging and educating suppliers on eTIMS approval, or
- Transitioning to suppliers who are willing and able to comply.
3. Is there any transitional relief for claiming expenses during the eTIMS rollout, particularly for 2025 returns?
Yes. For the first-year transition (2025 returns filed in 2026), KRA has indicated a degree of administrative relief while systems and taxpayers stabilize.
During this period:
- Expenses may still be claimed even if not fully eTIMS-aligned, provided strong alternative documentation exists (e.g., receipts, contracts, payment evidence).
- KRA may conduct post-filing reviews or audits to validate such claims.
From 1 January 2026, stricter enforcement is expected, with expense validation increasingly cross-checked against:
- eTIMS data
- Withholding tax records
- Customs and import data
4. Do buyer-initiated invoices automatically reflect in KRA records after supplier approval?
Yes. Once approved by the supplier, buyer-initiated invoices should reflect in KRA systems and be available for expense validation.
If an approved invoice does not appear or fails to auto-populate correctly, taxpayers should promptly contact KRA eTIMS support, or engage their assigned KRA relationship manager for resolution.
5. Are imported services required to have eTIMS invoices?
Imported services are generally exempt from eTIMS invoicing.
6. Can eTIMS invoices be generated or backdated for transactions from previous years?
No. eTIMS invoices cannot be backdated for prior years’ transactions since the system applies prospectively.
Taxpayers should focus on ensuring full compliance for current and future transactions, particularly from 1 January 2026 onward.
7. As educational institutions, are we required to use eTIMS to invoice students?
Yes, they are required to onboard eTIMS and issue compliant electronic tax invoices for student fees and related charges.
Although education services are generally VAT-exempt, VAT exemption does not exempt an institution from eTIMS invoicing requirements. eTIMS applies to the issuance of tax invoices for taxable and exempt supplies alike.
8. What happens if multiple incorrect eTIMS invoices were issued and the error is discovered six months later?
If multiple incorrect eTIMS invoices are discovered six months after issuance, the invoices cannot be deleted or corrected through credit notes due to the six-month rule limit, meaning they remain valid on KRA records and any correction can only be pursued through formal engagement with KRA on an exceptional, case-by-case basis.