What Is an eTIMS-Compliant Invoice?
An eTIMS-compliant invoice is a tax invoice that has been generated, transmitted, and confirmed through KRA's Electronic Tax Invoice Management System (eTIMS). It is not simply an invoice that includes a KRA PIN — it must be created through one of KRA's approved eTIMS solutions.
When you issue an eTIMS invoice, the system transmits the invoice data to KRA's servers in real time and returns a unique eTIMS invoice number, a QR code, and a server confirmation code. These three elements prove that KRA has received and recorded the invoice.
Key point: An invoice from a word processor, Excel spreadsheet, or handwritten receipt pad is not an eTIMS-compliant invoice — even if it includes your KRA PIN. Only invoices generated through eTIMS Lite, eTIMS Client, eTIMS Trader, or VSCU/OSCU qualify.
See our full eTIMS onboarding guide for instructions on registering for and setting up each eTIMS solution type.
Mandatory eTIMS Invoice Fields
Every eTIMS invoice must include the following 10 fields. Missing even one can result in KRA rejecting the invoice and blocking the buyer's input VAT claim.
Seller's registered business name and KRA PIN
Must match the name on your KRA PIN certificate exactly. No nicknames or trading names.
Buyer's KRA PIN (B2B transactions above KES 10,000)
For B2C or transactions below KES 10,000, record the buyer's full name and ID number instead.
Sequential eTIMS invoice number
Automatically generated by the eTIMS system. Do not create your own numbering system.
Invoice date
The actual transaction date. Backdating or forward-dating invoices is an offence under the Tax Procedures Act.
Full description of goods or services
Generic descriptions like 'miscellaneous' or 'services' may be rejected on audit. Be specific.
Quantity and unit price (excluding VAT)
Clearly state quantities and the unit price before VAT. Bulk discounts should be shown as reduced unit prices.
Tax rate and VAT amount (in words and figures)
Show the VAT amount numerically (KES 1,600) and in words (One Thousand Six Hundred Shillings).
Total amount including VAT
The gross amount the customer must pay. Must match the sum of net + VAT.
QR code
KRA's encrypted QR code containing invoice metadata. Must be scannable via the eTIMS verification app.
eTIMS server confirmation code
A unique alphanumeric code from KRA's server confirming the invoice was transmitted and recorded.
B2B vs B2C Invoicing Rules
eTIMS has different requirements depending on who your customer is. Here is the breakdown:
| Scenario | Buyer Details Required | VAT Rate |
|---|---|---|
| B2B sale above KES 10,000 | Buyer's KRA PIN (mandatory) | 16% |
| B2B sale below KES 10,000 | Buyer's name and ID number | 16% |
| B2C sale (individual consumer) | Buyer's name and ID number | 16% |
| Sale to unregistered person below KES 10,000 | Simplified invoice — name only | 16% |
| Export of digital services | Customer name and country | 0% (zero-rated) |
Common mistake: Many businesses skip asking for the buyer's KRA PIN on B2B transactions above KES 10,000. This is a compliance violation. If the buyer later asks for a corrected invoice so they can claim input VAT, you must issue a credit note and a new eTIMS invoice — an administrative burden for both parties.
QR Codes and Server Confirmation Codes
Every eTIMS invoice has two security features that prove it was transmitted to KRA:
QR Code
KRA generates an encrypted QR code for every eTIMS invoice. The QR code contains the invoice number, seller PIN, buyer PIN (if applicable), invoice date, total amount, and a cryptographic signature. Anyone can scan it with KRA's free mobile app to verify the invoice is genuine and was transmitted to KRA.
Server Confirmation Code
This is a unique alphanumeric code (e.g., "ETIMS-KE-2026-8A3F9B") generated by KRA's server after receiving and validating the invoice data. It proves the invoice exists in KRA's database. You should record this code alongside the invoice for your records.
Pro tip: Always scan your own eTIMS invoice QR code before sending it to the customer. If the QR code fails, the invoice was not transmitted to KRA — even if your eTIMS system showed "success". This can happen due to network interruptions or system glitches. A failing QR code means the invoice is not compliant and your customer cannot claim input VAT.
How to Verify an eTIMS Invoice
As a buyer, you should always verify that an eTIMS invoice is genuine before claiming input VAT. Here is how:
Download KRA's eTIMS verification app
Available on Google Play Store and Apple App Store. Search for 'KRA eTIMS Verify' or 'eTIMS Verification'. It is free and requires no login.
Scan the QR code on the invoice
Open the app and point your phone camera at the QR code printed on the invoice. The app will decode it and fetch the invoice details from KRA's server.
Compare the details on screen with the printed invoice
The app displays the seller name, KRA PIN, invoice number, date, total amount, and VAT amount. Verify these match the printed invoice exactly. Any discrepancy means the invoice may be fraudulent or not properly transmitted.
Check the server confirmation code
If the QR code scan succeeds, note the server confirmation code displayed by the app. Compare it with the code printed on the invoice. Both codes should match.
Save a copy for your records
Take a screenshot of the verification result and save it alongside the invoice PDF. This serves as proof that you performed due diligence before claiming input VAT.
Cannot verify? Do not claim the input VAT
If the QR code fails to scan or the app displays different details than the printed invoice, do not claim input VAT on that invoice. Report the issue to your supplier and ask them to issue a corrected eTIMS invoice. Claiming input VAT on an unverifiable invoice risks a penalty of 75-200% of the tax evaded if KRA flags it on audit.
What If Your Supplier Is Not on eTIMS?
If your supplier does not issue eTIMS-compliant invoices, you face a direct problem: you cannot claim input VAT on those purchases. Here is what you can do:
1. Ask your supplier to register for eTIMS
Send your supplier our eTIMS onboarding guide and explain that their non-compliance is blocking your input VAT claims. Most suppliers will register once they understand the impact on their B2B customers.
2. Use Buyer-Initiated Invoicing (BII)
If your supplier is not yet on eTIMS but you still need the goods, you can use BII on the eTIMS system. You generate an eTIMS invoice on behalf of your supplier, transmit it to KRA, and the supplier receives a notification to accept or reject it. If accepted, you can claim input VAT. BII is a transitional solution — the supplier is expected to onboard within a reasonable period.
3. Switch to a compliant supplier
If your supplier refuses to register for eTIMS and BII is not practical, consider switching to a supplier who is eTIMS-compliant. The cost of losing input VAT claims month after month adds up quickly — often exceeding any price advantage from a non-compliant supplier.
4. Report persistent non-compliance to KRA
If a major supplier refuses to onboard eTIMS despite your requests, you can report them to KRA via the iTax portal or through KRA's compliance hotline. KRA takes eTIMS non-compliance seriously, especially for businesses above the VAT threshold.
See our VAT Special Table guide for more on the risks of buying from non-compliant suppliers.
Common eTIMS Invoice Mistakes
Using your own invoice numbering instead of eTIMS numbers
The eTIMS system generates sequential invoice numbers automatically. Do not override them or create your own.
Issuing one eTIMS invoice for multiple smaller sales
Each sale should have its own eTIMS invoice. Consolidated end-of-day invoices are not compliant for B2B transactions where each customer needs their own invoice.
Not printing or emailing the QR code
The QR code must be physically printed on paper invoices or embedded in PDF invoices. Without it, the buyer cannot verify the invoice.
Using the wrong tax rate (16% vs 8% vs 0%)
Apply 16% to standard-rated supplies, 8% to supplies to unregistered persons (if applicable under your election), and 0% to zero-rated supplies like exports. Using the wrong rate can result in an audit adjustment.
Not showing VAT in words
The VAT Act requires the VAT amount to appear in both words and figures on every invoice. Many eTIMS templates include this automatically, but verify before printing.
Issuing credit notes outside eTIMS
Credit notes must also be issued through eTIMS. Issuing a manual credit note outside the system means the original invoice remains in KRA's database as valid, creating a discrepancy.
Need an eTIMS review? Smart VAT Kenya can review your current invoicing process and identify compliance gaps. We also offer eTIMS onboarding assistance and can help you set up the right solution for your business. Message us on WhatsApp for a free initial consultation.
Frequently Asked Questions
- What makes an invoice eTIMS-compliant in Kenya?
- An eTIMS-compliant invoice must be generated through KRA's eTIMS system (Lite, Client, Trader, or VSCU/OSCU). It must include the seller's registered name and KRA PIN, the buyer's KRA PIN for B2B transactions above KES 10,000, a sequential eTIMS invoice number, the invoice date, a full description of goods/services, quantity and unit price, the tax rate and VAT amount (words and figures), the total amount including VAT, a KRA-generated QR code, and the eTIMS server confirmation code.
- Can I issue an eTIMS invoice without the buyer's KRA PIN?
- Yes, for B2C sales (sales to individual consumers). For B2B transactions above KES 10,000, the buyer's KRA PIN is mandatory. If you are selling to a business customer and they refuse to provide their KRA PIN, inform them that without it, they cannot claim input VAT on the purchase. For sales below KES 10,000 to un registered persons, you can record the buyer's name and ID number instead.
- How do I verify an eTIMS invoice is genuine?
- Scan the QR code on the eTIMS invoice using KRA's free eTIMS verification app (available on Google Play and the App Store). The app will display the invoice details from KRA's server. If the QR code fails to scan or returns different details, the invoice may not have been transmitted to KRA and is not valid for input VAT claims. You can also manually verify by checking that the invoice has a valid eTIMS server confirmation code and sequential invoice number.
- What if my supplier does not issue eTIMS invoices?
- If your supplier is not using eTIMS, you have three options. First, ask them to register for eTIMS (send them KRA's eTIMS onboarding guide). Second, use Buyer-Initiated Invoicing (BII) on the eTIMS system — you generate the invoice on their behalf, they receive a notification, and you can claim your input VAT. Third, if neither works, consider switching to a compliant supplier, because you cannot claim input VAT on non-eTIMS invoices from that supplier.
- Do I need to print eTIMS invoices on special paper?
- No special paper is required. You can print eTIMS invoices on plain A4 paper, as long as the QR code is clearly printed and scannable. However, for high-value transactions, KRA recommends printing on paper that preserves the QR code legibility for at least 5 years (the statutory record-keeping period). Thermal paper that fades over time is not recommended.
- What is the penalty for issuing a non-compliant eTIMS invoice?
- Issuing invoices outside eTIMS carries escalating penalties. First, the buyer cannot claim input VAT on that invoice. Second, if KRA finds you issued non-compliant invoices during an audit, you face a penalty of up to KES 10,000 per invoice plus a 50% surcharge on any additional tax assessment. For businesses with high invoice volumes, this adds up very quickly. Using eTIMS correctly is both a compliance requirement and a financial protection.