The Kenya Revenue Authority (KRA) has introduced the Electronic Tax Invoice Management System (eTIMS), aimed at digitizing tax invoice issuance and enhancing tax compliance among businesses. With the deadline for onboarding set for March 31, 2024, business owners need to familiarize themselves with the process of creating an eTIMS account to avoid penalties for non-compliance. Here’s a comprehensive, step-by-step guide on how to create an eTIMS account and meet KRA’s new tax regulations.
Why is eTIMS Important?
KRA’s eTIMS system is a crucial tool in the fight against tax evasion, offering an efficient way for businesses to issue digital tax invoices that are automatically transmitted to the KRA portal. This helps the authority ensure transparency in tax declarations and monitor real-time sales data. Businesses that fail to onboard to eTIMS after the stipulated deadline face hefty fines, including penalties amounting to double the tax evaded, as per The Tax Procedures Act.
Step-by-Step Process for Creating an eTIMS Account
Here is a detailed breakdown of how to register for an eTIMS account and ensure your business is compliant:
1. Access the eTIMS Portal
- Website: Visit the eTIMS platform by navigating to the website: etims.kra.go.ke.
- Once on the portal, click on the “Sign-Up” button to initiate the registration process.
2. Enter Your KRA PIN
- You will be prompted to enter your KRA PIN twice for verification purposes.
- This is a crucial step to ensure that the account is tied to the correct business entity registered with KRA.
3. Provide Contact Information
- You will need to provide your mobile phone number for SMS notifications.
- There is an optional field to input your email address. It is advisable to provide your email for further communication and ease of receiving updates from KRA.
4. Create and Verify Your Password
- Create a strong password for your account. This should be entered twice for verification.
- Ensure the password is secure as it will be used to log in and manage your eTIMS account.
5. Verification via One-Time Password (OTP)
- After completing the registration process, an OTP (One-Time Password) will be sent to your registered mobile phone number.
- Input this OTP on the portal to verify your identity and log into your newly created eTIMS account.
6. Access eTIMS Services
- Once logged in, go to the “Service Request” tab.
- Under the service request options, select “eTIMS Solution” to initiate the setup process for your business.
7. Upload Required Documents
To complete the setup process, you will need to upload the following documents:
- Identification Document (ID): This could be your National ID or Passport for verification.
- Signed eTIMS Commitment Form: This is a form that confirms your agreement to comply with eTIMS regulations. It can be downloaded from the KRA website, signed, and uploaded to the portal.
8. Submit the Request
- After uploading the necessary documents, click “Send” to submit your registration request.
- Your account will now be configured, enabling you to start issuing electronic tax invoices that will automatically be transmitted to the KRA system.
Additional Onboarding Methods
For those unable to access the eTIMS website, KRA also provides a USSD-based solution:
- Dial *222# on your mobile phone.
- Follow the prompts provided to register your business and onboard to eTIMS.
Key Points to Remember
- Non-Compliance Penalties: Businesses that fail to onboard to eTIMS by March 31, 2024, risk being penalized for non-compliance. Fines can amount to double the tax evaded through non-declaration of transactions via eTIMS.
- Tax Evasion Risks: Any taxes not declared through the eTIMS platform will be considered tax evasion under the Tax Procedures Act, and this could result in severe legal consequences.
- Ensure Correct Documentation: Make sure that all documents uploaded during registration, such as your ID and commitment form, are valid and properly filled to avoid delays in approval.
With KRA enforcing the use of eTIMS for all businesses, it’s essential for business owners to act quickly and ensure they comply with the digital tax invoicing regulations. Creating an eTIMS account is a straightforward process, but it is critical to complete it before the deadline to avoid fines. Whether you choose to use the website or the USSD option, following the outlined steps will ensure your business is compliant and ready to operate within the new tax framework.
Don’t wait until the last minute—register for your eTIMS account today and safeguard your business against potential penalties!
