Compliance Context: Kenya TIMS Regulations
Compliance Context: Kenya TIMS Regulations
This section provides background for implementers and finance teams who want to understand the regulatory framework.
What Is TIMS?
The Tax Invoice Management System (TIMS) is a KRA initiative under the VAT (Electronic Tax Invoice) Regulations, 2020. It requires VAT-registered businesses to:
- Issue tax invoices through a KRA-approved device or middleware
- Transmit invoice data to KRA in real time at the point of sale
- Display a QR code on every invoice as proof of TIMS compliance
Type A, B, and C: What Is Type C?
KRA defined three types of ETR solutions:
| Type | Description |
|---|---|
| Type A | Physical ETR device (hardware terminal): common in retail/POS environments |
| Type B | Virtual ETR: software-based, deployed on a local server |
| Type C | Middleware/API integration: connects accounting software directly to KRA via a certified middleware provider |
Type C is ideal for businesses already using accounting software like ERPNext, as it eliminates the need for separate hardware and allows invoice submission to flow naturally from the existing accounting workflow.
Penalties for Non-Compliance
Failure to comply with TIMS regulations attracts:
- Financial penalties per un-reported invoice
- Potential suspension of the business's VAT registration
This integration ensures every posted invoice is reported without any additional effort from your finance team.
Last updated 5 days ago
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