Understanding eTIMS Lite: Simplifying tax compliance for SME's
In addition to the rollout of eTIMS Lite, KRA has invited taxpayers and representative bodies facing compliance challenges to engage with the authority for further assistance.
The Kenya Revenue Authority (KRA) has announced that all businesses, including those in the Informal Sector and Small Businesses, must electronically generate and transmit their invoices to KRA via the electronic Tax Invoice Management System (eTIMS).
The eTIMS Lite platform enables non-VAT registered taxpayers to electronically generate and transmit their invoices to KRA through an easy-to-use interface.
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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.
A spokesperson from the taxman emphasised that electronic invoicing is crucial for all businesses, regardless of their size or sector. "By mandating the use of eTIMS, KRA aims to enhance transparency, reduce tax evasion, and improve overall efficiency in tax collection processes."
Expressing commitment to supporting taxpayers, KRA stated, "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 compliance challenges to engage with the authority for further assistance.
One innovative solution highlighted by KRA is the concept of reverse invoicing, which offers sellers greater flexibility in invoice management by authorising buyers to issue invoices on their behalf.
KRA has also intensified efforts towards publicity, awareness, and tax literacy through continuous stakeholder engagements and taxpayer education, particularly targeting players in the informal sector such as farmers, jua kali traders, and artisans.
For taxpayers encountering difficulties with existing solutions, KRA encourages reaching out for tailored assistance. "Taxpayers should feel free to contact KRA through our contact centre or visit our website for further information," stated the Commissioner of Domestic Taxes.
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