Understanding eTIMS Lite: Simplifying Tax Compliance for Small Businesses


In its commitment to supporting businesses, particularly in the informal sector, the Kenya Revenue Authority (KRA) has introduced "eTIMS Lite," a simplified electronic Tax Invoice Management System tailored for non-VAT registered taxpayers. Accessible through USSD and web-based platforms for businesses using individual KRA pins.

Steps while using USSD

1. Dial *222#

2. Select option 5 for Tax Payment (KRA) and Click on Send

3. Enter Option 2 - Sales Invoice and Click on Send

4. Proceed to enter your credentials as prompted to finish registration.

5. Redial the USSD after registration to make a sale and select the sale invoice

6. After you enter the rest of the details like product and quantity, a link will be sent to you via SMS for invoice.

For web-based:

https://www.kra.go.ke/images/publications/KRA-Individual-Web-Invoicing-Context.pdf

Key Features and Benefits of eTIMS Lite

I)        Accessible Solutions: eTIMS Lite provides accessible solutions through USSD (*222#) and the ecitizen.kra.go.ke platform, making it convenient for non-VAT registered taxpayers to manage electronic tax invoices.

II)      Empowering the Informal Sector: Recognizing the unique challenges faced by players in the informal sector, KRA has undertaken awareness and education initiatives to promote the adoption of eTIMS Lite, enhancing tax literacy and compliance among farmers, jua kali traders, and artisans.

III)     Partnerships for Success: KRA has forged partnerships with representative groups and associations in the informal sector to facilitate a smooth onboarding process for eTIMS Lite, ensuring seamless integration into business operations.

IV)    Tailored Solutions: Understanding the diverse needs of businesses, KRA encourages personalized assistance, including innovative solutions like reverse invoicing, to address specific challenges and promote flexible tax compliance.

Conclusion

The introduction of eTIMS Lite underscores KRA's commitment to simplifying tax compliance and supporting businesses of all sizes. By providing accessible solutions, fostering partnerships, and offering tailored assistance, KRA aims to empower small businesses and promote a culture of tax compliance, contributing to the economic development of Kenya. 

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