KRA TIMS System Explained

KRA TIMS System stands for TAX Invoice Management System. Its objective is to increase: VAT compliance, minimize on VAT fraud and increase tax revenue

ETR machines were introduced in 2005 as a record keeping tool to capture the details of sales transactions by VAT registered taxpayers.

In order to better streamline VAT administration, KRA has introduced the electronic tax invoice

This will be achieved through the implementation of the Tax Invoice Management System (TIMS) The overall objective is to increase: VAT compliance, minimize on VAT fraud and increase tax revenue.

Under the new KRA TIMS System there are four different types of ETR Machines

1. Type A: Suitable for small business entities whose record keeping is manual and those who do sales on the move, e.g., van sales since the ETR is portable. Suitable for retail outlets and shops using point of sale terminals. Devices that fall under this category are the Aclas CRV5X, Aclas CRV3X & Incotex 181
2. Type B: This is suitable for retail outlets and shops using point of sale terminals. Devices in this category includes cash registers & receipt fiscal printers
3. Type C: Suitable for businesses that have automated their operations and are using software billing systems/ERPs. Devices in these categories include the Aclas FC4 ESD & the incotex 600 ESD Machine.
4. Type D: Suitable for all types of business entities.

1. Fosters a fair business environment.
2. Simplified VAT Return filing (pre-Filled)
3. Faster processing of VAT refunds
4. Automated activation of tax register
5. Solution to the VAA Process (Invoice inconsistencies)
6. Ability to verify the validity of an invoice